Insuring lease car with cosigner
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UPDATED: Mar 2, 2019
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Insurance Question from Hatfield, PA
Asked on 03/02/2019
Insuring lease car with cosigner Want to cosign lease for daughter who does not live with us. She has bad credit. Lease comp says I have to be on lease with her. She has own expensive car insurance policy. My insurance said I can't lease or own a car and add her to policy cause she doesn't live with us. How do we insure since lease wants both our names,? Her policy, my policy? Not sure legal way since both names on lease but she is primary driver, has own policy, own home.
Answer given on March 04, 2019
It is never a good idea to co sign a lease on a car with anyone, even one’s daughter. However, if you do, she should check with her automobile insurance company about the insurance. It is possible they will add you as an additional insured regarding that vehicle. They may want to add you as a driver, but if you have no driving issues, it should not affect the cost of insurance for your daughter. This should also satisfy the leasing company regarding the co sign for the car.
However, be aware, that if you are on the insurance policy you could be liable in the event of a bad auto accident. It will be putting your assets at risk in that event. Make sure your daughter has higher liability limits, which are often required by leasing companies, and try to get her a personal umbrella policy for additional liability protection. Also, for protection you too should have an umbrella policy in case you are brought into a major lawsuit.
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