Can lienholder be responsible in car accident?

I own a car and have it in my name. I am selling it to a friend with a loan with monthly payments and a contract. The friend has comprehensive and collision and state minimum liability. I am a little worried about the liability. If he is in an at-fault accident and exceeds his limit, do I the owner of the car become responsible? Can they sue me?

Jan 12, 2019 Cincinnati, OH

Ava Lynch

Jan 12, 2019

If you keep the car registered in your name, there is a possibility that you could be held liable for damages that exceed the driver's policy. It is not common, however, there is still a chance. If you do let your friend take over the payments, make sure you are listed as an additional interest on the policy. This means you have a financial stake in the vehicle. Also, check with your finance company. They may require you to be listed as a driver on the policy that covers the car. Good luck and if you have any questions, don't hesitate to ask.

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