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luckydriver

cosign for car must you be on insurance?

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if a parent cosigns the loan must they be on their kids insurance policy? 

 

both live under the same roof and before this transaction, have individual auto policies in Pennsylvania.

 

assume both are on the car title as well because i forgot to ask but what CU would give you a loan without you being on the title?

 

its members 1st in harrisburg PA

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It is standard for insurance companies to require that all licensed drivers that live in the same house with their insured car be covered with car insurance.  It does not have to be the same policy though.

 

As for what a lender may require, the only sure answer is to ask that lender.

Edited by mk_378

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so then mom can be covered even if the car is not listed on her policy then?

 

i just was thinking if  kid has state min. of 5K property and hits a 50K car then mom has to come up with 45 K but the car is not listed on moms policy and i thought that would be an issue. id had assumed mom needed to pay additional premium since a new car is in her name too.  she obviously thinks doesnt have to be on her policy since it's on kids own policy. 

 

then again. mom has no assets and is judgement proof so i'm sure i'm worried about nothing. she doesnt care why should i  :)

 

 

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Usually state minimums are set so the other vehicle is covered in an at-fault crash. Co-signing on a loan doesn't necessarily put the co-signer on the title. If that were the case it wouldn't be co-signing for a loan, it would be joint ownership of the vehicle.

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Co-signing has kinda gone the way of the doo-doo birds.   For the last few years, our applications have been altered to indicate an intention to sign JOINTLY when there is more than one person on the application for credit.  I have long ago gotten rid of my co-signor forms.   That being the case, and in my state, any owner may insure the vehicle, and the lender will be fine with that.

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The potential liability entanglements are yet another reason not to co-sign with anyone. 

 

Really the only people who should consider jointly purchasing would be married couples, and then only if it is something they need to buy and co-signing is necessary to get approved.

Edited by mk_378

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the parent can borrow my time machine to go back and stop from making the terrible decision to co-sign.

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19 hours ago, luckydriver said:

then again. mom has no assets and is judgement proof so i'm sure i'm worried about nothing. she doesnt care why should i  :)

Are you pulling my thingie?

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These are questions best addressed by your local insurance agent AND the bank through whom financing will be had...after all, the lender can impose conditions that are stricter than the minimum thresholds that exist in statutory language!

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