Reader’s Question:
I co-sign for a car loan in Nampa Idaho however the primary on the car loan does not have auto insurance. I am just worried that if in case of an accident, will I be held liable for anything?
Jeremy
Nampa, ID
If you co-sign on a car loan in Nampa, Idaho then it is likely that you could be held liable if in case there was an accident and the car was not properly insured. You are partly responsible as the co-signer, for those who use or operates the automobile and what happens while they are operating the vehicle.
Normally the the lien holder or the financial institution on the car will require you to have collision and comprehensive coverage above the state’s mandatory liability auto insurance. In this manner their asset which is the automobile is protected. If the automobile insurance lapses or cancelled on the automobile they might decide to take out auto insurance on the car themselves and add the cost, which will be higher, to the car loan.
It would be best to verify if the vehicle you co-signed is insured to make sure anyone who drives the car or the vehicle itself is fully protected.