Personal liabilty
If I co-sign a car loan for a friend, besides the obvious liabilty for the loan amount, would I have any personal liability if my friend should get in an accident?
Asked on 2/20/01, 9:43 pm
1 Answer from Attorneys
Charles Aspinwall
Charles S. Aspinwall, J.D., LLC
Re: Personal liabilty
You will not ordinarily incur liability under the circumstances you mention if there is a wreck or something, unless:
If you have reason to know that your friend constitutes a danger to other motorises [alcoholic, drug-user, etc.] and you enable him/her to obtain and drive a motor vehicle, you could have liability under those facts.
if the friend is a member of your family or related to you, then you could have liability based upon the "family purpose doctrine." Check with your insurance agent.
Answered on 4/04/01, 8:45 am
