liability

[bmcdonn86]

My grandfather just co-signed for me on a used honda civic about 2 months ago. Im the only one that drives the vehicle and i do have full coverage insurance on it that i pay for. My grandfather has been extremely concerned about me causing over $400,000 in damage or injury to someone else. now my insurance only covers 15,000. but what im trying to say is im 20 yrs old and if i was to cause over $400,000 in injury or damage to someone else, would the co-signer be liable if i couldnt afford the cost?

 

[calalily]

Title

The legal owner of the car is the person whose name is shown on the title to the vehicle. I believe your question depends on whose name or names is on the legal title of the car. Your insurance company will answer this question for you.

 

[lwpat]

If his name is not on the title, he has no liability except for the payments. The car loan is a separate issue.

 

[cabri]

My grandfather just co-signed for me on a used honda civic about 2 months ago. Im the only one that drives the vehicle and i do have full coverage insurance on it that i pay for. My grandfather has been extremely concerned about me causing over $400,000 in damage or injury to someone else. now my insurance only covers 15,000. but what im trying to say is im 20 yrs old and if i was to cause over $400,000 in injury or damage to someone else, would the co-signer be liable if i couldnt afford the cost?

If your grandfather is concerned, why don't you find out the cost to increase your liability coverage to a higher limit. It may not be very much money and perhaps he would pay it for the peace of mind.

Even though the "State" only requires you carry a limit of $15,000 for liability that is not wise in my opinion. If you are liable for bodily injury from a auto accident and others were hurt, certainly $15,000 would not give you much security. You could easily wind up with a judgement against yourself.

Talk to your insurance agent about options for higher limits and the cost.

 

[Malibu_Barbie]

If his name is not on the title, he has no liability except for the payments. The car loan is a separate issue.

That's the thing though ... his AND his grandfather's names are, in essence, "on the title", since his grandfather is a co-signor on the loan. Therefore, both will be held responsible. Liability extends to all persons affecting the title to a vehicle ... and if he were to die, his grandfather would be stuck with the loan on the vehicle ... so, you see where the title "swap" comes into play. If you know of a law in his state which provides otherwise, then I would like to see it.