Reader’s Question:

My ex-wife and I leased a vehicle together in Fort Worth Texas. She was the co-signer and she is the primary motorist. The vehicle is insured under my name. If I drop the vehicle from my insurance policy, will I be held liable if there is an accident when she is driving? Does the vehicle have to be insured under my name since the lease is in my name and she is a co-signer?

Candice

Fort Worth, TX

If your wife does not have insurance on the car and got involve in an accident, it is likely that you could be held responsible because you are on the lease with her. As a signer on the lease you are liable for those that operate the vehicle and what happens to the car while they are driving, this is called vicarious liability.

In addition, if the car is registered under your name and there is a lapse in the car insurance it will go on your driving record. The penalties for a lapse in auto insurance differ on state laws but can include losing your suspension of the license plates and driving privileges to name a couple.

You may contact the insurer in Fort Worth Texas which you leased the car through to check if the insurance needs to be under your name or if you can cancel your auto insurance on the car if your wife puts the proper insurance on it and has the vehicle registered in her name.

Make sure that the leased vehicle has enough insurance on it so that you and your assets are not at risk if the car is in an accident.

Tags: auto insurance, automobile