If I Co-Sign For a New Car Loan Am I Responsible If There is an Accident?

Reader’s Question:

I just want to know if I co-sign a loan for a vehicle in Arizona and the primary driver causes an accident can I be held responsible in legal matters?

Tiffany

North Pinal, AZ

Generally, if you have your name on the title of a vehicle and are considered a co-owner then you have liability for the actions of anyone who drives the automobile. So if as a co-signer you had your name put on the registration or title of the vehicle then likely you will be considered a co-owner and therefore could be sought after if the main driver was in caused damages in an accident.

If you are not listed on the title of the car and only named on the loan then your risk of being involved in legal matters are not as great since you only signed to be financially responsible for the car or make payments if the primary signer fails to make payments timely.

I suggest that you contact a lawyer in AZ that is familiar with Arizona liability laws and civil suits with regards to car accidents to know what liability you would have in your position as a co-signer on a car loan on which some else is the main driver.