Can a lien holder be legally responsible if the registered owner does not carry insurance?

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 30, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a lien holder be legally responsible if the registered owner does not carry insurance?

I was hit by a driver and as a result my vehicle was totaled. The driver is the
registered owner and his boss is the legal owner. The driver did not have
insurance. Is his boss legally responsible? The truck was used as a work truck.
I only had liability.

Asked on March 23, 2017 under Accident Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

A lien holder is not responsible for an accident or for a failure to have insurance: a lien is simply the right to be paid under certain circumstances; being a lienholder does not make one the "legal" owner of  vehicle. The legal owner is whomever it is registered to. The legal owner and the at-fault driver (if they are not one and the same) could both be liable for an accident, but someone whose only connection is a lien would not be.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption