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Having good credit is a positive attribute that could endure you to lenders. It could also make your relatives and friends turn to you to cosign a loan. While doing so could help a loved one, there are many risks involved. For instance, if you cosign a car loan, are you liable for accidents? What effect will a cosigned loan have on your credit?

Cosigning a loan is a common practice in the lending world. It allows you to help out someone who the lender considers to have bad credit. However, it can also expose you to certain risks. This is why you should explore all the merits and merits before cosigning a loan.

A Houston Car Accident Attorney can answer any questions you have about your eligibility in a car accident. Contact Husain Law to learn about your rights.

Who Is a Cosigner?

Not everyone has a good credit score. For such people, getting approved for a loan can prove difficult. A cosigner increases the odds of someone with bad credit getting a loan. They usually have a lengthy credit history and a good credit score. Essentially, a cosigner agrees to pay the borrower’s loan if the borrower defaults on it.

A good number of borrowers would have a hard time getting first-time credit without cosigners. However, cosigning holds many risks for the cosigner.

Cosigning on an Auto Loan

If you cosign an auto loan, you commit your credit to it. This means that you agree to pay it off should the primary borrower default. You can cosign an auto loan for a family member or close friend. Generally, you are only responsible for the loan, not what the primary borrower does with the car.


As mentioned, cosigning an auto loan does not make you liable for what the primary borrower does with the car. You will not be held responsible for any accidents resulting from the driver’s negligent acts. However, you are liable for the loan payments, which could pose a problem if the driver is sued.

Consider a situation where the primary driver is sued for damages in a drunk driving accident. If they end up paying a lot of money in suit settlements, they might lack enough money to pay off the car loan. This will leave you to make the loan payments.


In the above example, the lender could sue you for unpaid loan payments if the primary borrower defaults the loan. If they are successful in court, you could have your wages garnished, and bank account levied. The court could even put a lien on your car until the loan is paid. Records of such legal actions will then appear on your credit report.


If you cosign a car loan, are you liable for accidents? Generally speaking, you shouldn’t be held responsible for an accident if you weren’t driving the vehicle when it happened. Liability typically falls on the driver, not the owner, except in certain situations.

However, if the primary borrower gets sued for an accident and defaults on the loan, you will be responsible for making the loan payments.

Contact Husain Law to discuss your liability with an expert Houston Car Accident Attorney,  Explosion Lawyer and Airlines Injury Lawyer.

Read More: Looking for a Houston Car Accident Lawyer?

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