Can a Co-signer on a Car Loan Be Sued?

[bobson]

Yes, we always make sure the cosigner is listed and make sure there is proper coverage to cover them in case of a large claim. Some carriers will add the cosigner as and additional insured. Remember the attorneys will go after any deep pocket.

This is the most sensible piece of advice on this topic. The co-signer is more likely to be sued the larger the actual damages grow.

 

[BobbyMcGee]

Can a parent be sued if the child is involved in a negligent accident, if they don't live with the parent and the only connection is that the parent co-signed the car loan? They are not a co-registrant or named insured on the policy simply a cosigner.

The way you described it, the parent only co-signed the loan and has nothing to do with the ownership of the car or named on a policy.

He is only liable to pay the loan if she doesn't. If she is a minor, then, sure, they can come after him for the accident but most lawyers will have tunnel vision on collecting the policy limits first. Sounds like a "scare" tactic.

 

[Jerard]

Keep in mind that lawyers are scum. They would sue the co-signer's ex-wife's grandmother's cat if they thought they could win a buck on it.

 

[djs]

Hmmm, why do you hold back so much? Why not just come out and say what you really think about lawyers!!!!

 

[Jerard]

Hmmm, why do you hold back so much? Why not just come out and say what you really think about lawyers!!!!

I would have, but I don't drink anymore.

 

[cornerstonelega]

This is something that the state statute will dictate. In Michigan, the titled owners can be sued, whether they are cosigners on the note doesn't matter.

I suspect it's probably the same for your state, but you'd want to either look up the state statute or ask a lawyer friend who does auto accidents.

 

[togatown]

This is something that the state statute will dictate. In Michigan, the titled owners can be sued, whether they are cosigners on the note doesn't matter.

I suspect it's probably the same for your state, but you'd want to either look up the state statute or ask a lawyer friend who does auto accidents.

He is not on the title.

 

[cornerstonelega]

He is not on the title.

Yeah. Generally, liability only attaches to the titled owner.

 

[Olivebranch]

Keep in mind that lawyers are scum. They would sue the co-signer's ex-wife's grandmother's cat if they thought they could win a buck on it.

All lawyers are not "scum". You must have had a bad experience. A lawyer who is working for you should be considered a great asset. Lawyers are a necessity today and very affordable if you know how to access to them.

Can a Co-signer on a car loan be sued? That's a good legal question and that person, the father, should be asking an attorney. There are many variables that could make the answer a yes or a no.

Is the daughter a dependent? Is she a college student? Does he claim her on his taxes? What state is the daughter living in? Every state has their own laws.

There is a lot to consider when answering that question.

 

[Cory]

If the person doing the suing can't get the judgment from the person they want to sue due to lack of assets...lawyers would likely look for any other person(s) to sue even if it is a stretch.