can i be sued???

[SandyC_01]

Im from Pennsylvania

We have a 18 year old daughter that has her own insurance policy, My husband went with her to the bank to get a loan for a newer used car. Because of her age and no credit history they wouldnt give her a loan, The bank said they could list my husband as a co-owner so she would get the loan and get a good rate, They said it would help her establish credit for the future. When it came time to sign the loan papers of course my husband and daughter both signed everything except for whos name the car is to be registered in. the registration listed both my husband and daughters name, We told them that we wanted the car in her name only as she had her own insurance policy and she was going to be making the payments. They said ok...and put a line through my husbands name ,and my daughter was the only one that signed the back of the title. That was a few weeks ago and we dont know what the registration acually says because we havent got it back yet...But Someone told my husband the other day that it didnt matter that he didnt sign the title that the car was half his and that makes him responsible if she ever had an accident...it this true?
Thanks in advance
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[reddenbakker]

Technically YES your husband would also be sued as the owner of the car......

IF your daughter caused a serious accident and the damages are MORE then her insurance policy limits.

So tell your daughter to get say $300,000 liability coverage and PAY the extra rates so as to keep you from being sued.

By being co-owener she should NEVER just get the minimum insurance on the car, Also she must get collision/comprehensive as well, becuase if the car is totalled the amount she gets wont pay off the full loan,..... and you and her will have to pay off the old loan as well as a new one for the new car.

 

[SandyC_01]

really?

you mean even if my husbands name is not on the registration that he can still be sued ?

 

[JETX]

Ignore 'Teddywakker'. He is a forum troll who has NO legal knowledge or experience. He has been kicked off the forum many, many times, but keeps returning. He is from NY and lives on welfare.... and uses the library computer to access the net. Nothing else to do apparently.

Also, his answer is flat-out WRONG.

The fact that your husband is a co-signer on the loan, and not on the title, means that he will NOT incur any liability in the event of an accident. Also, the fact that your daughter is not a minor, means that you as parents, also would not be liable.

However, if your daughter fails to make the payments on time or otherwise breaches her repayment agreement, the lender WILL come to you (co-signer) for payment.

 

[SandyC_01]

im relieved !!!! I think

I was really worried there for a minute. But on the loan papers it lists my husband and daughter as "buyers", When we went to the bank we told them we wanted to "co-sign" the loan for her, But The bank said in order to get a low intrest rate my husband would have to listed as a buyer. But when it came time to sign the title we told them we just wanted her on the title because it is her car, She has insurance in her own name and is making the car payment. So my husband did NOT sign the title he only signed as a buyer . And we are now waiting to see if the registration comes back with just my daughters name as we wanted, Our daughter is very responsible person shes a full time college student and works a job 30 hours a week, Shes in her car driving between the two alot and she needed a reliable car , But we understand that accidents happen everyday and thats why we helped her get the car but wanted to make sure our assets we protected from a lawsuit if something happens. If we lose everything it affects our daughters lives too.
thanks
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[JETX]

Again, if he is just a co-signer on the loan agreement and not on the title as owner, he has NO liability.

I do however, suggest that anytime anyone co-sign for another, that they at least list themselves as a lien-holder... and keep a set of keys. Even the best intentioned teen-ager or young adult can run into financial problems and you would want a way to recover the vehicle if needed. Also, a signed promissory note with security interest would be a good step... just in case. Oh, and before you ask, lienholders have no liability either (lenders with liens are NOT owners).

 

[SandyC_01]

thanks so much

thanks you so much halket !!! Thanks for taking the time to answer my questions...I think where i was getting confused is that i didnt know that "co-signer" and being listed as a" buyer" on a loan agreement without being on the car title would both spare us from being sued , My husband said i think to much !! LOL many thanks again !!!

 

[JETX]

You're welcome, and please feel free to use our services in the future!!