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Auto Insurance Claims/liability as a lienholder

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Expert: - 1/25/2011


Question
We want to sell a car to our daughter. We will be listed as the lienholder.  When a financial institution is listed as a lienholder they are not liable in the event of an accident.  Our daughter does not live with us but because she is our daughter are we legal liable in the event of an accident? This vehicle and transaction is in Florida.

Answer
Hi Cheri,

If your daughter is 18 or over then you are not liable for her actions under any circumstances. You can not be liable if you are listed as a lienholder. Just be sure you are listed as a lienholder on her insurance policy as well as the vehicle title. That way you will be notified if she lets her insurance lapse.

I hope this helps
Richard Hixenbaugh

Auto Insurance Claims

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Richard Hixenbaugh

Expertise

Auto insurance claims procedure, auto coverage, liability issues, auto damage questions, how to deal with the insurance company, loss of use and diminished value.

Experience

I have been involved in the insurance industry for over 25 years. I have experience in underwriting, sales, claims adjusting, auto damage estimating, auto value appraising and diminished value appraising. I have testified as an expert witness over 35 times.

Organizations
Society of Certified Auto Appraisers

Education/Credentials
Completed all required courses for the Florida Property-Casualty agents license and the Florida claims adjusters license. I have attended various courses on auto damage estmating, vehicle appraising and am ASE certified in collision damage analysis.

Past/Present Clients
My company has done work for consumers nationwide.

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