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No, but consider the following.
If the vehicle is uninsured and gets wrecked in an accident, the co-signer will still be responsible for paying the balance of the loan- a loan for a wrecked car. This is a serious risk when a car buyer needs a co-signer for the loan. The need of a co-signer signals that the primary borrower has not established a responsible credit record, or may not earn enough to afford the car loan. The lender considers that buyer too much of a risk and so requires a co-signer. Statistics show that a person with no established history of paying their bills, or a negative credit history, may be lax about maintaining car insurance as well. Co-signing is a risky business.
The co-signer should make certain the car payments are being made on time and that the vehicle is adequately insured.
What else can I help you with?
Can you provide a co-signer letter for the loan application?
Yes, I can provide a co-signer letter for the loan application.
If your co-signer is the only one on the auto loan but you are the driver and making the payments does the insurance have to be in your name or the co-signers?
Normally, the company that gave the loan requires that the person borrowing the money keeps the insurance. To be sure, ask the lender.
How does a 16 year old get an auto loan?
you need to be 18 to get a auto loan,and then you would most likely need a co. signer.
Does the co-signer for your auto loan have to live with you?
No. For the best results credit-wise, the co-signer of your loan should have a great credit record, however, they do not have to live with you.
Can you qualify for an auto loan with no drivers license?
yes you can get a auto loan without a license but you can not get auto insurance with out one and you can't complete the loan closing without insurance.
What are the benefits of combining an auto loan with life insurance?
Combining an auto loan with life insurance can provide financial protection for your loved ones in case of unexpected events like death or disability. If something happens to you, the life insurance can help pay off the remaining auto loan balance, relieving your family of that financial burden.
Do you need a co-signer to get a auto loan?
That would depend on your age and credit rating and the rules of the loan company.
Does a bank provide cash for an auto loan?
Yes, a bank can provide cash for an auto loan.
Does the cosigner on an auto loan have to be on the insurance policy?
By co-signing the loan, they are guaranteeing that you will repay the loan. They do not need to be on the auto insurance policy, but it would be in their best interest.
Can a person in California have a co signer on an auto loan from out of state as in Florida?
Ask a Lawyer.
Can the cosigner be taken off the auto loan contract if stated and the loan is in good standing for 12 months?
No the co-signer is on for the life of the loan
What is auto loan death insurance and how does it work?
Auto loan death insurance is a type of insurance that pays off the remaining balance of a person's auto loan if they die before the loan is fully repaid. This insurance provides financial protection to the borrower's family or estate in the event of their death, ensuring that they are not burdened with the loan debt.
