Insurance on Son's Vehicle
We have co-signed on a car loan with our adult son who is now behind in his payments because of losing his job recently. He has also just told us that he does not have any insurance on the car and can't come up with any money to buy it right now. He has just started a new job and needs the car to get back and forth to work so he can get back on his feet, but the money for insurance may take a month or so. My question is that since we are feeling very exposed to a potential lawsuit, can we insure the car although it's in our son's name? Also, what would be the extent of our liability as co-signer of the loan?
The legal implications of being a co-signer on the loan for your son's car should have a legal opinion. I'd recommend taking a free half-hour of a lawyer's time and making sure you aren't in a bad situation in terms of liability.
As for insuring the car, you have only one option that I'm aware of, and that would be to have your son secure insurance while you pay for it. In most North American jurisdictions, you can't insure a vehicle if you are not one of the legal owners. However, you can always check with an insurance company and see if they would be willing to insure the car in your name, with your son as principle driver, because you are co-signers on the loan.