Auto Insurance Claims: Liability issues, personal assets, automobile loan

Question
I recently agreed to co-sign a automobile loan for my sister.  She's young and
doesn't have much credit yet.  Two days later I was told that since my name
will be associated with he vehicle I need to be on the insurance policy.  If this
is the case will I potentially be liable if she's found to be the cause of an
accident and the other party sues for damages?  I'm worried about my own
insurance going up and more importantly someone coming after my personal
assets.

Thanks for your help.

Answer
Hi Jeff,

When you co-sign for a loan, you are also a co-owner of the vehicle. So yes, if your sister is at fault in a collision, they will also come after you. You should list yourself as a driver on your sisters policy. It should not cost any more but will provide you with the needed coverage.

I hope this helps
Richard Hixenbaugh