If a person takes over my car payments and getstheir owninsurance, am I liable if they gets into an accident?

Get Legal Help Today

 Secured with SHA-256 Encryption

If a person takes over my car payments and getstheir owninsurance, am I liable if they gets into an accident?

I am selling my car and the person interested in it wants to take over the payments without taking a loan himself. I will sign a personal contract with him to transfer all the responsibilities of the car to him and the ownership once the car is paid off. He is in the military so he will get an insurance through them.There is an option to add him to the registration. How liable will I be if he gets in an accident and someone gets hurt or the other car gets totaled? Can they go after me? What is the leverage of the contract in the face of the law?

Asked on August 17, 2010 under Accident Law, California

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

I do not suggest that you enter in to this type of agreement and that you sell the car outright thereby transferring the ownership immediately.  If you do it your way you are opening yourself up to huge liability should the "person" get in to a car accident.  The party injured will sue you as well as him and if there is substantial damage your assets are not protected.  All you have is a "right" to sue the party who signed the contract with you.  But the rights of the injured person are not subject to your agreement.  They are rights given them under the law and you can not alter those.  So think twice here.  Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption