Does a co-signer have to be on your car insurance?

The co-signer generally won't need to be on the car insurance except for certain circumstances, depending on your insurer. For instance, if the co-signer will be driving the car regularly (for example, if parents co-sign on the car and plan to drive it) or they live under the same roof, your insurer may require you to list them as additional insured drivers, though they won't be responsible for the insurance payments.

Is a co-signer liable for accidents?

A co-signer generally isn't responsible for accidents involving the vehicle. However, if the co-signer is also an owner of the vehicle, under certain circumstances they could become potentially responsible for damages if a driver causes an accident or is subject to a lawsuit.

The primary concern of a co-signer is if the owner can't make the payments on the vehicle. In that case, the co-signer could be held responsible for making the loan payments.

Can a co-signer pay my car insurance?

Yes. You can always split the cost of a policy with your co-signer or have them pay your premium, if they're willing to. If you're unable to make the payments, you can also speak with your insurance provider about payment plans or financial assistance.

Cosigning versus co-owning

A co-signer may have to be listed on the car insurance if the co-signer is also on the vehicle's title or is a regular driver, depending on the insurer. Otherwise, the co-signer is just someone assuring the lender that payments will be met.

A co-signer typically has no financial responsibility except paying the loan. If a co-signer is also a co-owner, under certain circumstance they could become potentially responsible for damages if a driver causes an accident or is subject to a lawsuit.