What are the stipulations of being a co-signer on a bank loan for someone?

I am getting ready to cosign on a car loan from the bank for someone. The loan amount is for $3000. I was wondering what the liabilities of doing this are? I know that if the person does not make the payments I am liable? I am more concerned about if the vehicle is involved in a accident what my liability is? If someone would sue for the accident what is my liability?Any input at all about this topic would be helpful?