Legal Question in Insurance Law in Florida

co-signer of auto lease legal obligation if accident

If I co-sign for an auto loan, what is my legal obligation if the one I co-signed for is in an accident? As the co-signer can they come after my assets? Can I protect myself by having me on their car insurance policy as a driver, or as a person of interest?


Asked on 7/19/07, 9:10 pm

2 Answers from Attorneys
Alan Wagner Wagner, McLaughlin & Whittemore P.A.

Re: co-signer of auto lease legal obligation if accident

if you are only a guarantor of a loan, you have no responsibilty to someone injured in an accident involving the car.

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Answered on 7/19/07, 11:30 pm
Paul Aiello Bennett Aiello

Re: co-signer of auto lease legal obligation if accident

Co-signing and accepting responsibility for repayment of the debt does not lead to vicarious liability for the operator's negligence. But if you are the owner (i.e., your name appears on the title for the car), then you are liable in many states under a theory of negligent entrustment theory, which is recognized either by statute or case law. Many banks require that the person(s) signing the loan documents also be the owner, so watch out.

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Answered on 7/19/07, 9:34 pm


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