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Does the owner have any liability if the cosigner of a vehicle has an accident and is not on the insurance?
Wiki User
∙ 9y ago
Certainly. The owner of the vehicle has liability in many different ways. First, the owner of the vehicle is allowing the co-signer to drive the vehicle without listing them on the insurance as a driver. In this, the owner has committed insurance fraud and material misrepresentation against the insurance company. The insurance company therefore has a reasonable cause to deny all coverage for the accident. Now the owner will have liability to the other party in the accident for all their damages, lost wages, and/or injuries. The owner will have full liability for the repayment of the loan even though the vehicle is damaged or totaled because the insurance company has no responsibility to pay for said damages because the owner lied on the insurance application. The application and policy clearly states that the owner will notify the insurance company of any and all household members and drivers. By not doing this you have committed fraud. An insurance application and policy make up a legally bind contract which binds both parties to certain requirements under the contract terms. The policyholder is required to pay premiums and be truthful on the application and thereafter letting the company know of drivers, locations, household members, etc. and the company has a requirement to pay claims. If one party doesn't fulfill their part the other party is also not required to fulfill the other part of the contract as the contract is void.
Wiki User
∙ 9y ago
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What is liability coverage on auto insurance?
This means that if the accident was your fault, your insurance will pay(up to an amount that is on your policy) for the other property and persons involved in the accident. Liability insurance does NOT cover your vehicle damage.
Driver become subject to liability insurance law when accident damages amount to?
You are subject to liability insurance requirements whether or not an accident occurs. An accident has nothing to do with liability requirements. You are required to have liability insurance of at least the minimum required by your state before getting into a vehicle and driving it. Driving is what triggers the law.
Is it legal for an insurance company to let you get liability insurance on a vehicle that has a lien holder on it?
Certainly, liability insurance has nothing to do with who owns the vehicle. It deals with protecting the owner of the vehicle if sued as a result of an accident. Collision and theft protect the owner of the vehicle from loss.
When is liability insurance needed?
When you cause an accident that damages another vehicle or hurts someone
What does property damage liability car insurance cover in an accident?
Property damage liability car insurance will cover the individuals car and property that you hit. It will not cover anything to do with your vehicle if the accident is your fault.
What is the difference between liability insurance and full coverage?
Liability insurance pays for someone else's damages if an accident is your fault but won't cover your vehicle. Full coverage provides liability insurance as above but will also cover your damages to your own vehicle in an accident regardless of whose at fault, as well as theft, fire, etc.
Drivers become subject to the liability insurance law when accident damages amount to?
You are subject to liability insurance requirements whether or not an accident occurs. An accident has nothing to do with liability requirements. You are required to have liability insurance of at least the minimum required by your state before getting into a vehicle and driving it. Driving is what triggers the law.
Cosigner need insurance?
The cosigner on an automobile loan is not the person who has to pay for insurance on the vehicle. The registered owner should pay the fees for insurance. However, it is the cosigner's responsibility to make sure the registered owner is carrying insurance for the vehicle.
If you are driving someone else's car does your liability insurance pay repairs to the vehicle you are driving?
No, liability insurance is when there are injuries involved. If you are injured in an accident when someone else is driving your car, your liability insurance would cover your medical costs. Comprehensive and collision insurance on the car you were driving should pay for damages to the vehicle.
Does liability pay off if there was just your vehicle in the wreck?
It does not pay for your vehicle. You would have to have collision insurance. In a one vehicle accident, liability only would come into affect if you caused damage to another person's property.
Who is liable if you are a cosigner and the primary driver has an accident and is charged with DUI?
As long as the driver has auto insurance on the vehicle there should be no problem, DUI or not. If there is no insurance on the vehicle you have a problem. In that case not only will you be liable for the damage to the vehicle you cosigned but you also may have liability for the injuries and damages for anyone they hit. You should be very careful about cosigning a loan with anyone. They will get payment from the one who is easiest to get payment from and that is you most likely.
If you cosigned a leased car for your daughter and the car and insurance are in her name are you responsible as cosigner for any liability over the covered insurance amount in the event of an accident?
No. Y-THINK-Y * Ordinarily a cosigner would not be liable for anything other than the lending agreement. However, responsibilities incurred by all parties when a vehicle is under lease can be quite different than the purchasing a vehicle. It would be prudent for the cosigner to read the leasing contract very carefully and perhaps seek legal advice if they are unsure of the terms of the contract.
