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Liability - I'm making ins/loan payments, but the loan is in another person's name

Discussion in 'Automobile & Car Insurance' started by skyecb, Jun 17, 2010.

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  1. skyecb

    skyecb Law Topic Starter New Member

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    I am currently making timely payments on a car. The insurance is in my name, however the loan is in my now ex-boyfriend's name. He is concerned for his liability in the event I am in an accident. I am a completely honest person and if I am at fault, I will admit it.

    I called progressive (my insurance) and this is what they told me: If an accident were to happen, since the insurance is in my name, as long as I continue making my insurance payments and continue making the loan payments, I am responsible. The only liability he may have is when those payments stop being made. If an accident occurs, since the insurance is in my name then all claims will be processed with my information. In the event of a lawsuit (which would only occur when I don't take responsibility?) the liability would be based on the specific situation.

    What is his liability, even if I take responsibility?

    He is named as the owner on the registration, but anything mailed is sent to my name and address, and the title is held by the lienholder (credit union). He is named only as an interest on the insurance policy, not a driver.

    Also... How binding would a contract between him and I be should we sign something that states that I accept total responsibility for anything that happens with the car?
  2. army judge

    army judge Super Moderator

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    He is wise to be concerned.
    Yes, you have insurance.
    That insurance has limits, however.
    Let's say your liability covers up to $100,000.
    That's okay, unless you exceed the limit.
    If you're at fault in an accident, and you destroy a $500,000 Bentley, your "ex" is going to be on the hook with you for the $400,000 over your limit.
    And, let's hope you don't kill MR. Bigshot, the owner of the Bentley in the accident.
    It isn't wise to allow you to drive the car, even if you're insured.
    Do you see what he's concerned.
    Sure, you don't destroy $500,000 cars everyday and kill Mr. Bigshots.
    But, as they say, SH*T does happen!

    I suggest you try to get him off the loan.
    Ask him to sell the car to you.
    See if the loan company will take him of fthe note, and replace his name with yours.
    Otherwise, he may come and take the car.
    Try to work with him.
    This doesn't mean you're dishonest.
    But, you aren't his wife, nor is he your husband.
    skyecb likes this.

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