Legal Question in Personal Injury in Arizona

Lienholder liability

I am making a loan to my daughter for purchase of a vehicle. If I am listed as the lienholder on that vehicle, would I have any potential liability if she were to get into an accident? Could anyone sue me because I am listed as the lienholder?


Asked on 4/10/08, 12:17 pm

1 Answer from Attorneys
James Jenkins Jenkins Law Center PLC

Re: Lienholder liability

Think about it. Does Bank of America get sued for an accident because they financed the purchase? Of course not.

Does your daughter live with you? If so, you could be responsible under the "family purpose" doctrine for her negligence. It might be conceivable that the family purpose doctrine could be stretched to make you liable, because it is a family vehicle that you provided the purchase for.

Make sure she has enough insurance, and that you do also. Or list yourself as an additional insured on the policy. Talk to your agent.

Good luck. Personally, I would have loaned the money to my daughter but not listed myself on the title.

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Answered on 4/11/08, 2:52 am


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