Any answers involving, co-signers, teenagers, accidents and lapsed insurance ?

Question

i co-signed for a 2006 car for my great niece, (she relocated herself to texas ).i reside in oklahoma.she hit a tree on lapsed insurance, and had been behind in payments

Answer 1

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The accident and insurance issues are separate. You co-signed the car loan, and which means you agreed to pay back the loan if your great neice isn't or doesn't. The loan company will come after you soon if they have not already done so if she has ceased making payments.

Answer 2

You're on the hook for the balance of the loan, if you're a cosigner to the loan. That's what cosigner means. YOU write the check, if she defaults. Which, apparently, she is doing.

If you are also co OWNER of the vehicle, you can be on the hook for any damages the car did, in the accident, to the tree or any other people in the car. So I hope you aren't co owner, and only co signer.

Answer 3

You should be glad she only hit a tree and not another car. She could have done serious injuries if she would have hit another car.

Only problem is she will have to pay for the car or continue to make payments on the car. If she doesn't then you will have to make car payments on the car or it will ruin your credit.