Is cosigner liable if owner allows non or suspended license people to drive and accident results? Will insurance refuse to pay?

Asked over 3 years ago - Defiance, OH

Cosigner found out person cosigned for is allowing a person with a suspended license to drive. Also, that person has allowed minor child with no license to drive. Can affected parties sue cosigner if accident results? If the cosigner has any other property that has the name of this person attatched, can an injured party go after that property? What can cosigner do to protect self? If person has not defaulted on loan, can cosigner still have vehicle repossesed due to the reckless behavior?

Attorney answers (2)

  1. Christian K. Lassen II

    Pro

    Contributor Level 20

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    Lawyer agrees

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    Answered . Is the cosigner on the vehicle title? Negligent entrustment theory can sometimes hold owner responsible. A free consultation with a car accident lawyer in your state would be in order.

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  2. Jill S. Bollwerk

    Pro

    Contributor Level 6

    Answered . The law varies from state to state, but there is a concept known as negligent entrustment, which holds the owner of a vehicle responsible for the acts of a permissive driver if the owner knew that the permissive driver was an unusually bad driver or shouldn't have been driving for some reason or other. Check with an attorney in your state to find out if a cosigner can be considered an owner of the vehicle under Ohio state law.

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