Expert: Anne - 8/28/2008

Question
My husband bought my step daughter a truck. The truck is registered in her name only with my husband listed as the lien holder. Currently it is registered in California, but since my step daughter lives in Arizona the registration is being transferred to Arizona. If she does not keep it insured and lets someone else drive it who gets in an accident, I want to make sure that she is the sole person who is liable- not my husband as the lien holder.

Answer
Hello Lori,

If you husband is not listed as an “owner” or registered “owner” anywhere, there is no liability that could probably attach to him (unless he changes title, or insurance policy). Lien holder is  the person who has an interest on the property, like a doctor has a lien in an injury settlement. The actions of the patient (driver) are not to be a burden on the doctor (person who lend the money).

I hope this helps,

Good Luck
Anne
http://www.auto-insurance-claim-advice.com