As a cosigner, am I responsible if the other person has a suspended license?

So I consigned for my mom last year so she could get a vehicle and I recently just found out that she hasnt had insurance on the vehicle for a couple months now. She has insurance now, but her licence is suspended due to non payment. And as far as I know she has yet to take care of it. How does this affect me as a cosigner? Should I be concerned?

14 Answers

Relevance
  • 1 month ago

    A cosigner is only responsible for making sure the car note payments are made. A license is only required for driving a vehicle not owning one. If the car is not insured please note. That if the car is stolen or totaled you will still have to pay off the vehicle. Where if the vehicle is insured the insurance will usually pay off the rest of what is due on the vehicle. 

  • Anonymous
    1 month ago

    Only for the payments.  The name on the registration is responsible for everything else.

  • Anonymous
    1 month ago

    NO.  You cosigned to help her buy a vehicle(something a sane person NEVER does)but Mom did not abort you so that has to count for something and parents tend to pay off the LOANS they owe.(unless you are a Trump)

    You are done with her now, and the rest is her business.  She will be asking you for many a ride.

    Insurance is a separate issue.

    License is a separate issue separate from insurance

    The ONLY thing they have in common is that they are related to the car.

  • 1 month ago

    No...You're responsible if the car payment isn't made!

  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    1 month ago

    Yes, because the lender could "force place" insurance on it and it would be your responsibility to pay it if your mom did not.  They could also repo the car.

    Nobody has insurance with a suspended license. They may pay for it, but they are not covered/insured.

    She needs to hurry up & get her license reinstated.

  • Anonymous
    1 month ago

    You are responsible to make sure it is insured as well as the payments are made. That's a requirement of financing any car. If she drives with a suspended licence and get's into an accident, the insurance company may deny the claim and YOU will be financially responsible. 

  • 1 month ago

    As long as she has a valid, up-to-date insurance policy in her name the insurer is required to cover her even if she has a suspended license so in that regard her license status is of no concern to you.  What IS of concern to you is if/when she allows insurance coverage to lapse.  You absolutely do not want to be on the hook for a car you've cosigned on that is wrecked without insurance coverage.   

  • 1 month ago

    As a cosigner you are only responsible for the loan.

    Anything else that happens with the car is the responsibility of the owner/driver.

    Driving without a license or insurance is a violation by the driver. It doesn't matter if the car is paid off, financed, leased, cosigned, borrowed, or any other status, the only person that is committing a violation is the DRIVER who is driving illegally.

    However, if the car does not have full coverage with comprehensive, collision, and uninsured motorist protection then you are violating the financial agreement, and since you are a co-signer  you can be held responsible. In most cases the bank will add insurance and add it to the monthly payment which YOU have to pay for if the primary borrower doesn't pay.

    So you won't get a ticket or get in any legal charges for the fact that you co-signed a loan and someone is driving that car without insurance/license. But the financial consequences of violating the loan agreement could still come down on you which means you could owe money and have blemished credit.

  • 1 month ago

    This a guess but from what you wrote the car has to be sold and hopefully you can get back what it is worth from how much you sell it for. Otherwise you are in limbo until there is insurance on the car and it is registered with proof of insurance with DMV. If nor insured you are on the hook for the total amount owed on the car.

  • Rick
    Lv 6
    1 month ago

    nope, just that he pay the car loan back on time ..............

Still have questions? Get your answers by asking now.