Auto Insurance Claims: new car, car question, new insurance

Question
QUESTION: I cosigned on a new car for a "friend". He let the insurance expire and the finance company didn't pick it up. The car was involved in a hit & run accident he says he wasn't driving. My insurance wont cover the cost of the car I'm responsible for or the other car involved in the hit & run witch also includes medical damages. This person has since disappeared and I have no way to get in touch with him.  My first question is am I responsible for all damages including the car I now have possession of?  My second question is now that I have the car how do I get him off the loan? My insurance wont cover the car with his name on it, and I need his signature to get off the current loan in order to refinance in my name only.  P.S. I have more information if you need it.

ANSWER: Hi Ken,

This is a mess. Anytime you cosign a loan you are fully responsible for everything that happens just as if you were the only one on it. You will be responsible for paying the loan, getting new insurance on the vehicle, paying for the injuries, etc, etc,.  I'm very sorry but I do not know anyway out of any of this .

Richard Hixenbaugh

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QUESTION:  My second question is now that I have the car how do I get him off the loan? My insurance wont cover the car with his name on it, and I need his signature to get off the current loan in order to refinance in my name only. I was told I need power of attorney but I'm not sure how to go about that. Thank you for any information

ANSWER: Hi Ken,

As far as I know, there is no way to remove him from the loan without his signature. There is no incentive for the loan company to release one of the responsible parties from the loan.  I assume he is also on the title as an owner. That is where the greatest problem is. As long as his name is on all of the paper work, you will never be able to sell, trade or dispose of the vehicle. You will have to have the car repaired then just drive it until the wheels fall off. I'm sorry.

I hope this helps
Richard Hixenbaugh

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QUESTION: Shouldn't the finance company have insured the car as soon  the insurance expired or at least notified me? I don't feel I should be fully responsible when I had no idea the car was uninsured.

Answer
Hi Ken,

Generally, when the finance company is notified that the insurance has been cancelled they will purchase insurance and add it to the loan. The coverage they purchase is only physical damage coverage for the car itself. This is done to protect their interest in the vehicle not yours. There is nothing that requires them to purchase insurance. So if they did not there is nothing you can do.

I'm sorry.
Richard Hixenbaugh