If a person takes over my car payments and getstheir owninsurance, am I liable if they gets into an accident?
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If a person takes over my car payments and getstheir owninsurance, am I liable if they gets into an accident?
I am selling my car and the person interested in it wants to take over the payments without taking a loan himself. I will sign a personal contract with him to transfer all the responsibilities of the car to him and the ownership once the car is paid off. He is in the military so he will get an insurance through them.There is an option to add him to the registration. How liable will I be if he gets in an accident and someone gets hurt or the other car gets totaled? Can they go after me? What is the leverage of the contract in the face of the law?
Asked on August 17, 2010 under Accident Law, California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
I do not suggest that you enter in to this type of agreement and that you sell the car outright thereby transferring the ownership immediately. If you do it your way you are opening yourself up to huge liability should the "person" get in to a car accident. The party injured will sue you as well as him and if there is substantial damage your assets are not protected. All you have is a "right" to sue the party who signed the contract with you. But the rights of the injured person are not subject to your agreement. They are rights given them under the law and you can not alter those. So think twice here. Good luck.
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