What if your cosigner of car and car is totaled?

Answer 1

Lenders require a financed vehicle to have full coverage. However, many times it slips through the cracks and a person who has poor credit (who needed a co-signer) will allow the insurance to lapse. A co-signer should always make certain the car is insured against loss. If the car is involved in an accident and is not insured the co-signer is fully responsible for paying the loan.

This is a common problem with cars, people with poor credit and co-signers who fail to get informed regarding their responsibility and liability before signing. It is rare that the primary borrower will pay off the loan for a wrecked car.