I have a car that my 18 year old son drives daily that is in my and a banks name because it has a lien on it. I know that I can not transfer the title to him since it has a lien on it, but is there something that I can do to protect myself in the event of a hit and run etc? The reason I ask is because he is getting ready to move out and I want to him to be responsible of his actions, not me.
2007-06-27 23:11:01 · 12 answers · asked by MYRX8U 2 in Cars & Transportation ➔ Insurance & Registration
I forgot to mention that the car has liability on it and he is listed as the driver of this car. I'm just nervous if he does something stupid in the car and the license plate # would be registered in my name.
2007-06-27 23:35:30 · update #1
according to the latest rules , the owner of the car is responsible for whatever may happen to the car , hence its safe if your son takes over the lein and gets it done in his name or both of you sign on a bond paper that he is responsible for the damages henceforth
2007-06-28 01:02:54 · answer #1 · answered by badshah 5 · 1⤊ 0⤋
The only way is if you refinance the loan and have him take out the new loan in his name (or at least cosign). If he's 18, I wouldn't do that because he will not be able to get as good an interest rate as you can. Just explain to him that he will be responsible for any problems he causes, and if he doesn't drive carefully then take it away. At age 18, I don't think it's right to give a child the responsibility of owning a car with a lien.
2007-06-28 06:39:22 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Make sure he is on your insurance as a valid operator of the vehicle.
If he is, he will have the same coverage on the vehicle that you have. Make him pay for any additional charges that may apply to cover him.
Other than that, there isnt much you can do since you have a lien on the car that you can not transfer to him. You could try refinancing the car with a different company and have him as the signer with you as a cosigner. Then he could have his "own" car and be responsible for its upkeep.
Good luck.
2007-06-28 06:15:50 · answer #3 · answered by Vol 5 · 1⤊ 0⤋
Once your son moves out he may can get insurance on the car for himself. You may be able to remove him from your insurance then. Everything changes once he moves out. Plus you may then be able to go to the bank and transfer the lien over to him then. That would remove any and all responsibilities from you. Talk to your insurance provider and the bank about it. The bank may if they can't transfer the loan, work up a binding contract between you and your son.
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2007-06-28 06:35:03 · answer #4 · answered by Anonymous · 1⤊ 0⤋
It's best to have full coverage with a teenage driver. It's better to be safe than sorry. I always say, 'I'd would rather have it and not need it than to not have it and need it.' One incident can wipe out everything you have and suffer for years. It can complicat getting other insurance. Go on your driving record for years. Fill out SR-22 papers. Responsability is the key word. Make him pay off the lien. Make him take care of the car. If he has to pay for it, he is more likely to be careful.
2007-06-28 06:53:55 · answer #5 · answered by Anonymous · 2⤊ 0⤋
If your son cannot take over the loan (Try several fiance companies.) and get the title transferred, you will be responsible. If you can't afford comprehensive insurance, or you don't want to pay for it for him, I wouldn't let him take the car.
If you sign an separate agreement (like a lease) with him, the injured/damaged parties are still gonna come after you as the registered owner, leaving you to sue your son to collect on your agreement. I doubt that's a position you want to be in.
2007-06-28 06:17:19 · answer #6 · answered by trai 7 · 1⤊ 0⤋
form a lease agreement with him that the car is your property during the term of the lien and that he rents it for the amount of the payments for this period, therefore bound to responsibility of the property, insurance and damage.
When the lease period expires, the buy back amount would be $1.
This way you have a contract where he acknowledges sole responsibility for the property in question, including liabilities
2007-06-28 06:17:06 · answer #7 · answered by Anonymous · 2⤊ 0⤋
make him pay for his insurance and any other costs on the car. also explain to him the seriousness of the situation and the need to act responsibly. but honestly, if you think your son's capable of a hit and run - don't let him have the car.
2007-06-28 06:21:07 · answer #8 · answered by Anonymous · 2⤊ 0⤋
you must have some doubt issues with your son. if so,maybe he shouldnt have the car at all. after all,it is his responsibility to provide a car for himself,isnt that what we have to do?
2007-06-28 09:19:45 · answer #9 · answered by Anonymous · 1⤊ 0⤋
If he's 18, he's legally an adult. You aren't responsible for his actions anymore.
2007-06-28 11:44:12 · answer #10 · answered by Scott H 7 · 1⤊ 0⤋