FAQ: Is a cosignor on a loan responsible?

I cosigned on a loan for my daughter to buy a car. Am I responsible if she gets in an accident?

If you only co-signed on the loan, you are only responsbile to the bank. The bank will come to you if your daughter does not make her payments.

However, you should make sure that your name does not appear on the title. Go to DMV and request a title print out or ask the bank for one. If you are on the title, you can be held financially responsible if your daughter is involved in an accident. If you are on the title, your safest bet is to take out the insurance policy yourself so that you know that there is always coverage on the vehicle.