If a car is sold but not re-registered in new owner's name, can original owner be held liable for a subsequent accident?
Question Details:
We sold our used car in 12/08. We have a bill of sales and copy of the title transfer. The new owner failed to change the name through the DMV and was in an accident in 07/09. The insurance company is now going after us because the car was still registered under our names. Is there any way to fight it and get it off our backs and on to the person who is responsible?
This is one of those situations where you can theoretically find yourself in a bad spot on a technicality. Typically, all you need to do is provide proof that you transferred ownership and that the other party failed to live up to his obligations.
Insurance companies, much like anyone else, want to pick the lowest hanging fruit. If they can stick you with the expenses and you don't balk, they are not going miss any sleep knowing that someone who is innocent ended up picking up the tab. I would venture a guess that the insurance company sees you as a more likely candidate to provide them with money. At least, more so than the other party who could not even afford to register the vehicle in his name. They just want their money, and until you can prove to them that you have no obligation to pay that money, they will continue to try and recover it from you.
Unfortunately, you were just in the wrong place at the wrong time. You should draft a well written letter that provides them with a list of facts and details regarding your involvement (or lack thereof) with this incident. Provide them with all of the relevant information that you have. Enclose photocopies of your bill of sale and other such items. Make duplicates. Have a notarized copy sent to them. Make sure that you specifically state your intentions. Thank them for looking into the matter, express concern over the difficult situation that the other party has put them in, and then kindly ask them to seek other remedies (bother someone else).
Good luck.
