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What is the insurance liability for the cosigner of an auto loan?

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2006-06-05 01:35:15
2006-06-05 01:35:15

None. A cosigner is entering into a legally binding contract to repay the debt if the primary borrower defaults on the lending agreement. The cosigner does not have any other obligation nor ownership rights to the property.

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By co-signing the loan, they are guaranteeing that you will repay the loan. They do not need to be on the auto insurance policy, but it would be in their best interest.

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i was able to get an auto loan with the help of a cosigner and im under 18

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You are required to have liability insurance on any vehicle. The lender may require you to have full coverage as a loan condition.

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Yes: Your spouse/children can be included on your insurance policy regardless of who was/if there was a cosigner on the car.

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A cosigner- someone who agreesto pay the loan if you default

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No, the refinancing without the consent or knowledge of the original cosigner created a breach of the original lending agreement and the cosigner is no longer legally obligated for the debt.

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will primary on a auto loan have right to the vehicle if cosigner has been paying loan for 15 months and has possession of vehicle will primary on a auto loan have right to the vehicle if cosigner has been paying loan for 15 months and has possession of vehicle

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No, a cosigner can only be relieved of the financial obligation by a refinancing of the loan agreement without them being a participant.

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Insurance liability is found in different scenarios, but for this example I will use Auto Insurance liability. Most automobile lenders require anyone with an auto loan to have insurance liability. This means if you cause an accident while operating your vehicle, you may be made liable to pay the costs of damages and medical bills. While insurance liability is a good thing to have, especially if you are the one who is the victim of an accident, it can also be a costly, though necessary thing to have.

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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.

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They would need to have the vehicle refinanced in their name only or obtain another cosigner for the refinancing.

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No. The cosigner would have to apply for a loan in their name using their credit, income data.

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yes you can get a auto loan without a license but you can not get auto insurance with out one and you can't complete the loan closing without insurance.

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A cosigner is obligated as long as the loan exisists. The loan must be paid off or refinanced into the primary borrower's name only to release the cosigner.

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If you have bed credit, sometimes having a cosigner is the only way you can get an auto loan. The people who lend you the money so you can purchase the car want their money back with interest. If you have bad credit, they may think you will not pay them back. They may think your cosigner does not want his credit ruined and will pay them back. So, while they would not give you an auto loan, they would give you an auto loan with a cosigner who has good credit.

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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.

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The Insurance Company, Then The Name On The Title Of The Auto. If It Got To That. If There Is Insurance On The Auto In Her Name All Should Be OK. Best To You

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Most Loans Have An Insurance On The Person The Loan Is Made Out To. Check This Out, Get A Copy Of The Contract. If There Is Life Insurance AOn The Person That You Cosigned For, Then The Loan Should Be Paid Off By Insurance On Loan GOOD LUCK

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A cosigner cannot be removed from the debt obligation except by a refinancing of the loan without the original cosigner's participation.

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The loan must be paid out of the estate (sell of home, life insurance policy, etc...) Otherwise, the estate will be held up in litigation and will not be closed or the beneficiaries will be forced to pay the loan.

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Chances are unlikely. Unless, you have perfect strong credit and a lot of money

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The answer will vary from state to state, loan to loan and insurance company to insurance company. However, in most jurisdictions the DRIVER is responsible for insurance, regardless of who owns/titles/leases the vehicle. If I understand your question, you are asking whether the principal on the loan or cosigner is responsible for insurance? Most insurance companies could give a rats donkey WHO carries insurance, so long as insurance meets the loans stipulations, but you would be best suited asking the insurance company.

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Yes, you can switch the cosigner to the primary on a loan. The way to do this is to have the loan refinanced.


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