Legal Question in Credit and Debt Law in Pennsylvania

Are you liable? For the loan, of course, that's the whole point of having a co-signor. Liable for the accident? no

I agree with Attorney Artim. Co-signing is always a bad idea. What you are doing by co-signing is telling the lender "go ahead and make the loan because if primary borrower does not pay, I will". So you are going to be on the hook for the loan balance. Was your daughter in an accident with anyone else and was she at fault? If you are not a co-owner and just a co-owner then you will not be liable for any damage caused by the accident.

Regarding insurance, this was stupid. What kind of lender makes a loan and does not require insurance on the car? Most lenders want the car to be insured for as long as you have the loan and if the insurance lapses they put forced place insurance in place and its usually more expensive.

I think you really need to have a talk with your daughter as she did a lot of stupid things there. Can the car be fixed at all? If so, then you just keep making the payments on it. If it cannot be fixed and is a total loss, then make t he best deal you can with the lender. You probably cannot afford to pay off the balance - see if they will allow monthly payments. If that is out of the question, then start socking money away now and let the debt go t he collection route. Maybe they will sue. Maybe they will not. If they sue, at least you will have funds built up to deal with this. Never ever co-sign anything for anyone ever again.