Legal Question in Insurance Law in New Hampshire

Re: Auto Accidents

The short answer to your question is, no, helping someone to borrow the money he heeds to buy a car does not make you liable for any harm he might cause if he later causes an accident.

The only "exception" to this is a theory of liability called "negligent entrustment." For example,

if you lend your car to someone you know is drunk, you can be held responsible if that person then causes an accident with that car.

Theoretically, if you know this person you are helping is a horrible driver--an accident waiting to happen--and if he can't get a car without your help, then by helping him get a car you might theoretically be helping to put a dangerous instrument--a car--in his hands, and you might theoretically be responsible for any harm he causes if he causes an accident. That seems a remote possibility. To cover that possiblity, you would be wise to make sure that he maintains adequate insurance on the car.