If I am cosigner on an auto loan with my daughter and she lets a driver with a revoked driver’s license drive the car and they wreck it, can they hold me responsible?

Asked on October 27, 2015 under Accident Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If you are only a cosignor on the loan, and not on the title or otherwise an owner of the car, then you are not liable for any accidents; you are only liable on the loan itself (e.g. if it is not paid). Of course, if the car is totalled, the insurance will almost certainly not cover the full remaining loan balance; then if your daughter doesn't pay that balance, you would have to.
However, if you are on the car's title as well, then even if you never drive the car and consider it your daughter's car, you are still an owner, and as an owner, could be held liable for any accidents where the driver of the car, whether your daugther or someone she lets drive, is at fault.


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.