QuestionRob could not answer my questions, perhaps you can. Please advise, Thank You.
Auto Insurance Claims/Answered Question
Expert Rob Painter, Ase, CFEI, CAFATE
Subject Co-owner auto insurance liability
Question Hello,
below please find (3) questions based on the scenario which is indicated immediately afterwards..... I appreciate any answers,advice or suggestions you may have. Thank You.
(1.)Is it possible to be the co-owner of a vehicle (insured/uninsured) and not be liable (or named in a law suit) in the event the "named owner" on the Title of the vehicle has an accident, is negligent and or has a law suit filed against them?
(2) Also, will I be affected in any way by their driving record, as the co-owner of the vehicle.
(3) If I will be liable (per question #1) as the co-owner, how can I prevent the sale of this vehicle if I am not named as the co-owner on the Title? i.e.: separate contract????
In a nutshell here's the scenario..... I own a car (paid in full). On the Title of this vehicle, I am considering naming a relative (who is currently listed as a driver on my insurance policy)as the owner, and remaining a co-owner. I want to remain the co-owner to prevent the car from being sold or given to someone else without my knowledge. I do have "another" insured car I would be driving.
If I make my relative (currently a responsible driver who will obtain their own insurance) the owner and remain a co-owner on the Title of this vehicle, my main concern is "Liability" in the event "my relative" as the owner has an accident, becomes negligent, fails to maintain insurance coverage etc.
Answer Hello,
I know a lot about comprehensive coverage and only a little on liability. You would be best posing your questions to a local attorney.
Rob
Answer(1.)Is it possible to be the co-owner of a vehicle (insured/uninsured) and not be liable (or named in a law suit) in the event the "named owner" on the Title of the vehicle has an accident, is negligent and or has a law suit filed against them?
Owner negligence laws vary from state to state. In the event of a lawsuit, there is a high probability you would be named, as lawyers tend to name everyone they can think of in hopes of finding money out there. You probably would not owe anything in the long run, as it is difficult to prove owner negligence. But you could have a lot of hassle if there is a lawsuit.
You would also be responsible if insurance is not maintained, as this is required by law in most states. You could be fined.
(2) Also, will I be affected in any way by their driving record, as the co-owner of the vehicle.
No
(3) If I will be liable (per question #1) as the co-owner, how can I prevent the sale of this vehicle if I am not named as the co-owner on the Title? i.e.: separate contract????
You could name yourself as a lienholder. Essentially, you would have the co-owner sign a contract with you indicating that he /she owes money to you (loan) for the vehicle. You could choose to never collect the money/loan. Then file with your state DMV as a lienholder on the title. The vehicle cannot be sold unless you sign a lien release.
