What is a car co-owner’s liability regarding an accident?

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What is a car co-owner’s liability regarding an accident?

I’m a co-buyer of car for a non-relative, he gave/sold the car to his niece out of the state without my permission or consent, what is my liability should his niece get into an accident? I’ve tried to get liability insurance through my agent but he will not insure a vehicle not in my possession.

Asked on September 10, 2012 under Accident Law, North Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you are part owner of a motor vehicle and a person driving it other than yourself gets into an accident causing property damages or personal injury to a third person, you could be sued under the theory of "negligent entrustment" of the vehicle to this person.

I suggest that you shop for insurance policies to adequately protect your assets and yourself from liability in such a situation.


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