Legal Question in Insurance Law in California

Liability of Unsured Vehicle As Cosigner

I cosigned for an truck loan with my son. He has not been making his payments and the truck was repo'd. I never received notification from the financial inst. that he was delinquent. He has the truck back but I'm afraid it will be repo'd again. The kicker is the truck is not insured at this time. What is my liability? He is the only registed owner on DMV so I can not take possession and sell it. What should I do?


Asked on 4/11/06, 5:31 pm

2 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Liability of Unsured Vehicle As Cosigner

If all you did was cosign the loan papers then all you can be liable for is the loan. Your agreement with the bank was just a financial transaction and does not make you liable for harm your son does to others.

There may be some other reason why you would be liable if your son gets into an accident, but merely cosigning a loan won't do it.

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Answered on 4/12/06, 4:29 pm
Jonathan Stein Law Offices of Jonathan G. Stein

Re: Liability of Unsured Vehicle As Cosigner

If you only co-signed on the loan, you are only responsbile to the bank. However, you should make sure that your name does not appear on the title. Go to DMV and request a title print out or ask the bank for one. If you are on the title, you can be held financially responsible if your son is involved in an accident.

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Answered on 4/12/06, 6:44 pm


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