Auto Loans and Financing
Repossession
Auto Insurance
Co-signing

Do both the buyer and co-buyer have to be on same insurance policy even if one never drives the car?

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2012-08-01 04:41:20
2012-08-01 04:41:20

As the cosigner has a financial interest in the property, meaning if something happens to the vehicle he can be made to pay "All" the bills, Then he should certainly be insured on the policy for any loss regardless of whether he is driving it.

A cosigner is jointly and severally liable to the lien-holder for the full amount of the note and is probably required to be insured under the finance contract anyway. The cosigner if unlicensed and does not drive should at the very least be listed as a holder of interest in the lien-holder section so that they will receive notification from the insurer should the primary have any lapse in coverage.

The primary driver should also pay any additional premium required to insure the cosigners interest. After all, he was kind enough to co-sign so you could buy the car, the least you can do is make sure he doesn't wind up in the poor house should something happen to it.

Should the primary Driver / borrower refuse to insure the cosigners interest, it would probably be prudent for the co-signer to take legal recourse against the primary borrower before a loss occurs.

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Well, it depends how the title was written. if it says buyer "or" cobuyer you dont need the other persons signature for anything .... if its written with "and" between your two names, u will have to have both people present to complete any removals or transfers. That or you can have the cobuyer sell u the car. They will still need to be present though.

Buy cobuyer I wonder if you mean cosigner on a loan. If this is the case then the answer is no. As a cosigner you are simply agreeing to pay the loan if the person who took it out does not. It is in his or her name and you are responsible for it if they do not pay it.

IF your name is on the TITLE as buyer or cobuyer, you have the right to POSSESSION. Do you know where the car is? Do you have a key?

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If the buyer does not pay the loan, then the lender comes after the co-signer. Late payments affect both credit reports. Most recommendations are not to co-sign a loan.

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Not where I live in Ohio. My mother co-signed a car for me, and her name didnt have to be on the insurance, as long as the vehicle carried full coverage insurance in my name.

Ask them. Sounds simple but there is no one central repository of insurance policy information in the U.S. So if the policy buyer didn't tell you about the policy then it did them no good to buy it because unless you know about it then your heirs can't make a claim even if the policy was good.

Allstate Insurance Company offers automobile insurance to uninsured as well as insured customers. You can call their eight hundred number or check out their website at allstateinsurance.com.

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You both have to be named on the insurance policy because you still can be jointly sued as being co-owner of veh.

At the time of the loss the named insured on the policy and the title holder has to be the same (or family) for the insurance to be proper. If a 40 year old male sold his vehicle to a 18 year male, and the insurance was kept in the name of the 40 year old person, there might be a problem paying for a claim, especially in situation where there was an accident involving the 18 year old, regardless who paid for insurance.

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No, but there is no need for recourse. Under the law, the difference between the buyer and cobuyer, the signer and cosigner, the maker and comaker, the debtor and codebtor is negligible. They are simply different terms use to identify two separate parties who are eaually repsonsible for a debt.

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'insurance is a subject matter of solicitation', which essentially means that insurance has to be requested or asked for, not sold. - Souvik Maitra To fully understand the meaning of this cryptic phrase, take a look at the wording of any insurance policy that has been issued by an insurance company to a customer. Every insurance policy says that the insurance company is providing you insurance against a risk on YOUR request/solicitation, i.e. the company agreed to sell you its insurance policy after you solicited or asked for such a sale. In legal terms, insurance is a product that should not be pushed by a seller, but should be pulled by a buyer. That doesn't happen in real life, though -- Kapil Bajaj

Cobuyer, cosigner, they are the same thing. Wherever you sign as co-signer you should be aware that if the primary borrower defaults on payments you will be held equally responsible for paying the loan.

Title insurance protects you against hidden problems with the ownership of the property, i.e. if the seller doesn't have full rights to sell. It insures that there are no liens or mortgages left unsatisfied on the property. When a buyer purchases a property, title insurance protects them from any claims of ownership, lien, or mortgage placed on the property before the buyer takes title to the property. If the information upon which the title insurance is based is incorrect, and a claim is asserted against your ownership of the home, then the policy indemnifies or protects you from experiencing a financial loss directly attributable to a claim that is covered by the policy.

You don't. If the cobuyer has possession of the vehicle and is no longer making payments, you as the buyer may take possession and either take up and make current the payments, or voluntarily surrender the vehicle. Failure to do so will result in repossession, and will adversely affect your credit.

Most likely not. The purpose of a co-signer is when someone has "insufficient credit" to finance a vehicle someone else has to be on the application so in the case the main buyer messes up, the person cosigning will also be held responsible. In terms of insurance, as long as he has his own license and his name is on the registration, he can have his own insurance policy.

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