Am I liable if my name is on a car title?
Asked by: Dr. Laverne Crist I | Last update: March 5, 2025Score: 4.6/5 (43 votes)
Does it matter whose name is on a car title?
The simplest way to prove ownership of a car is to show you're listed on the car title as a current owner — and it will be difficult or impossible to prove ownership if you're not listed on the title. To add or remove someone from the title, find out the correct process from your state's BMV or DMV.
What are you responsible for when a car is in your name?
When you allow someone else to drive a vehicle that has your name on the title, you are opening yourself up to a potential lawsuit. If someone causes an accident in a vehicle that has your name on the title you could be held responsible.
Is a registered owner liable for an accident?
California operates under the permissive use law. California Vehicle Code section 17150 states, “Every owner of a motor vehicle is liable and responsible for death or injury to person or property resulting from a negligent or wrongful act or omission in the operation of the motor vehicle, in the business of the owner ...
Why should you avoid buying from someone whose name is not on the title?
Title Jumping - Dangers to buyers
If you purchased a vehicle from someone whose name was not on the title, you risk many possible headaches. Not knowing how many people the vehicle was owned by. Potential vehicle issues, etc. In many cases, prior sellers and/or the original title owner cannot be located.
You Might Be Held Liable If Your Name Is On The Car Title
What does it mean if your name is on the title?
Example Scenario: Imagine you and your friend, Alex, purchase a vacation home in California. Both of your names are on the deed as joint tenants. This means you both have equal ownership and, if either of you were to pass away, the other would automatically inherit the deceased's share.
What happens if someone doesn't transfer a car title?
This is called title jumping or title skipping and while it can end up saving the seller money, it is illegal in every state. In some states, such as California, Florida, and Texas, it is considered a felony and can result in jail time.
Am I responsible if someone else crashes my car?
In situations where permissive use was granted, you allowed someone else to drive your vehicle even if they were not on your primary insurance. Your own insurance company's collision coverage would kick in and cover the damages up to your policy limit if they were the one to cause the crash.
Who is liable if someone borrows your car?
Vehicle Owners Are Liable Under California Law
This law holds a vehicle's owner responsible for collisions caused by the driver of the vehicle – even if the driver is not the owner. Liability is determined by identifying the actual owner of the vehicle.
Does the registered owner have to be on the car insurance?
Does your car insurance and registration have to be under the same name? Insuring and registering your car under different names is allowed in most states. However, in those states that allow it, insurers still might not underwrite a policy to a name different than that of the registered vehicle owner.
Does it matter whose name is on the car?
Yes, the name on a car title can impact insurance coverage. Insurance companies usually require the policyholder to have an insurable interest in the vehicle, meaning they either own the car or have a significant financial interest in it.
Are you responsible for someone else driving your car?
Usually, a car insurance policy covers the vehicle itself, not the person driving it, and that means the liability coverage (which is required by California law) should cover the friend. California is an at-fault state, which means the driver responsible for an accident is the one whose insurance will be the primary ...
Am I liable after selling my car?
The important thing to know that in California, as is the case in most states, sales between individuals (that is, non-dealers) are presumed to be “as is.” This means that both parties understand that the car is being sold despite its faults and the seller is not liable for any further repairs and they are relieved ...
What if my name is not on the title?
A title is the proof of ownership and it ties the car to the name of the seller. If you try to sell a car without a title in your name, you just don't have the authority to sell it. You may also face fines and some jail time. And, you may even still be legally responsible for the car.
Does the car belong to the one with the title or the one who pays for it?
If the property is titled in someone's name, it belongs to them. However, if one partner helped contribute towards acquiring, or paying for the car, even if they aren't on the title, they can make an unjust enrichment claim if the other partner decides to keep the car.
Does the name on a car title have to match insurance?
Because, the titled owner of the vehicle needs to match the “Named Insured” on the policy so the policy can respond to a claim without delays and avoid the potential of denied coverage.
What happens if my friend borrowed my car and gets in an accident?
What Happens If Someone Borrows My Car and Has an Accident That Wasn't Their Fault? If the borrower of your vehicle has an accident and another driver is at fault, California's fault rule comes into play. You and the borrower would both have grounds to file claims against the at-fault driver's insurance policy.
Can my wife drive my car if she's not on my insurance?
A driver who lives in your household and isn't listed on your auto policy may be denied coverage if they borrow your vehicle and are involved in an accident. Family members who live in your household and drive your vehicle, including a teenager or your significant other, should be listed as drivers on your policy.
What happens if I let someone borrow my car and they commit a crime?
Even if you were not aware of the criminal intentions of the person you let borrow your vehicle, the prosecution may try to name you as an accomplice. It will be up to you to prove your innocence in this scenario. Loaning someone your vehicle can have serious consequences.
What if my boyfriend drives my car and has an accident?
If you let someone else drive your car and they get in an accident, your insurance company would likely be responsible for paying the claim, depending on the coverages in your policy. The claim would go on your insurance record and could affect your car insurance rates in the future.
What happens if someone wrecks your car and they aren't on your insurance Progressive?
If you give someone outside your household permission to drive and borrow your car (also referred to as "permissive use") and they aren't rated on your policy, any accident they're involved in may be covered by your insurer, depending on your state and insurer.
Am I responsible for my spouse's car accident?
California follows the Family Purpose Doctrine, which holds the owner of a vehicle responsible for damages caused by a family member using the vehicle for family purposes.
Can I sue someone for selling me a car with a lien?
Yes, you can sue the seller for fraud if you were not told of the salvage nature of the title.
Can someone put a car in your name without you knowing?
Yes, it's possible for someone to steal your identity and buy a car in your name.
Can I repossess a car I sold to a friend?
The rule is, for as long as you have not transferred ownership, then you have every right to demand payment and if nothing transpired after an amicable discussion, then you can repossess the said vehicle. As long as you still have the title, and your name is on it, it's still your car. If you've got a key, go get it.