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


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.

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