cosigning for a friend

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

The reason I said that was because I was advised by my insurance company State Farm that any car loan I consigned for could subject me to such lawsuits especially if the coverage does not meet the damages. Furthermore, they said I should have an additional umbrella policy of a significant amount to help provide protection against such lawsuits. I am a homeowner so this is relevant to me.

People can say a lot of things to sell you additional products. true/yes, possible/yes, likely- who knows---one of my favorites to someone- "and if you buy the extended warranty it may make the car more valuable to a dealership when you go to trade it in as it has the warranty on it-" person goes to trade it in after buying the warranty, dealership says- we dont care about the warranty, that just inhibits our ability to sell a warranty on that vehicle when we sell it.

Does it apply in your case, possible? But like I said not a big enough hit in a lot of transactions that I every heard of it as a reason not to co sign.

Even if you do not have assets in theory a lawyer could obtain a judgment against you pertaining to any future earnings.

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Fair enough...it would be unlikely one would be involved in such a serious accident. For me, it would never even be worth taking that type of risk if it was slightly possible my life could change dramaticly based on this type of lawsuit.

edited for grammer

Message Edited by plasticman on 08-26-2009 12:20 PM

[Watchmann]

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@Anonymous wrote:
My understanding is that there are also legal implications in terms of being a co owner of a vehicle with respect to possible lawsuits if there are serious injurys ect.. related to any accident. The lawyers will seek out anyone related to this vehicle. This alone would scare me away from co-signing on a car loan for anyone.

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This is a real issue in our sue happy society.  If one would cosign for a younger individual and that person has a serious accident where someone is injured or killed they could be open for legal action.   It would be one more thing that would give me pause to co-signing.  Co-signing automatically means the primary person has dodgy credit, and study has shown people with poor credit tend to have more insurance claims.

Having insurance does not relieve you of the possibility of legal action against you.  If you would injure someone who will require care for the rest of their life your $500,000 car insurance policy won't cut it.  If you are worth a couple of million the lawyers will take the $500,000 and then come after your personal assets.  It happens.  Fortunately an umbrella policy is not that expensive for what it covers.  I've got my home, cars, and motorcycle with the same company and a multimillion umbrella policy was about $400/yr. Just something to keep in mind as your assets grow.

Message Edited by Watchmann on 08-26-2009 04:49 PM

Message Edited by Watchmann on 08-26-2009 04:50 PM

[Anonymous]

Co Signing car accidents:

http://www.avvo.com/legal-answers/if-i-cosign-for-purchase-of-a-car-for-my-daughter--102736.html

"As I am licensed in Florida and Vermont, I can only offer you general advice. The short answer to your question is -- "it depends". If the car is driven in the state of Florida and an accident occurs there, under that state's dangerous instrumentality rule, the owner has equal liability with the driver. However, Florida is an exception to the general rule that the owner is not usually responsible for the actions of the driver.

In answer to your question "can I be sued for damages?" The answer is yes, but unless you are in a state like Florida, it is unlikely that a suit against you would be successful. People can sue you for practically anything, but success in the suit is another matter. You may wish to consult with your insurance agent to see how you can fully protect yourself from any potential claim. If you are listed as an insured on a liability insurance policy covering the car, you should not have any problems. "

Consult a lawyer if you co-sign loan

http://www.bankrate.com/brm/news/car-advice/20080905_cosign_lawyer_a1.asp

"In our litigious society, almost anyone can sue anyone else. So, there is always the risk that your husband could become involved.

You don't say what age your son is -- if he's a minor, that changes things -- or what control, if any, you have over the car. It also matters whether the car is fully insured.

My best suggestion for your peace of mind is to consult a lawyer."

Probably the best quote I found:

 http://www.ampminsure.org/start/about4087.html

Depends on the state where the accident happens. In some states the owner is held liable, in other states only the driver can be (unless there is negligent entrustment).

[Anonymous]

Thanks for the post usmc!

When I consulted with my insurance company State Farm I was living in Arizona and considering co-signing for my son in Texas. I decided to pay cash for his car and title soley in his name instead of having any concern with respect to legal liability due to possible serious injury lawsuits. My co-signing concern had nothing to do with credit or on time payments etc..

Message Edited by plasticman on 08-26-2009 04:25 PM

[Anonymous]

dont do it!!! its all ways a bad, bad idea i would not even co sign for a a spouse!! JUST SAY NO