Car Legal Trouble?

Question

My ex husband and I bought a car together. Now I'm on the car loan, he has the car, which was the agreement. I'm pretty sure I cannot get off of the loan, that's the point of having a cosigner. The registration was due to be renewed in April, and he says he doesn't have insurance on the car. I told him it is illegal not to have car insurance. What will happen to me if he gets pulled over without insurance? I've heard if the loan company finds out one does not have insurance on their car, the repossess the car. Any insight?

Answer 1

If he gets in a wreck, the money he would have spent on insurance will seem insignificant to the financial mess you will both find yourselves in.

Answer 2

Your right, your stuck with the loan, unfortunately.  If the finance company finds there's no insurance, they do have a option to notify you that if you don't supply it, they'll add it on.  It's very expensive.

Answer 3

You can in fact get off the loan.  There is a form called 'quit claim'.  It allows you to have your name removed.  You and hubby will have to sign it.  Check with your state's dept. of Motor Vehicles.

Answer 4

He'll get a ticket for driving without insurance.  He and he alone is responsible for getting behind the wheel of a car, and it's up to him to make sure said car has insurance (at least that's how it works in California).

As for the loan, you'll have to check with your lender to find out if they repo it for not having it insured.

You should check with the lender and the DMV to see what you're options are for getting out of the loan and the registration of the vehicle.

Answer 5

True, you can't get off the loan - until you pay off the car, or he chooses to refinance i.

You can be held responsible for any damage the car does, in an accident.  

Yes, when the loan company finds out there's no insurance on the car, they'll add it retroactive.  It runs around $500 a month, and ONLY covers the loan company, so you're still on the hook for any damage the car does to anyone else.  Plus, the $500 a month extra.   Which usually leads the car to getting reposessed, as if someone can't afford REAL insurance, they SURE as heck can't afford the forced placement coverage.