I sold my car to a friend who is here illegally and does not have a valid drivers license. The title is still in my name but not my insurance.

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Sep 11, 2012

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Insurance Question from Friendship, NC

Asked on 09/11/2012

I sold my car to a friend who is here illegally and does not have a valid drivers license. The title is still in my name but not my insurance. I sold my car to a friend of mine who is here illegally and does not have a valid drivers license. The title is still in my name but my insurance no longer covers the vehicle. A mutual friend of ours has put the car on his insurance. So the car is covered but I'm assuming that the driver is not. G-d forbid anything happens, what is my position? How much trouble could I seriously get in?

Answer given on September 12, 2012

It is not your responsibility to check the validity of a buyer of the car, so if you believe the person is here illegally, it is not your problem. However, if you are still on title, then you should be insuring the car. The other person who is insuring the car has no insurable interest in the car. If there is an accident, it will be your responsibility.I recommend that you change the title on the car to the buyer or the person who is insuring it. That will get you out of the circle in the event of a loss. When you transfer the title, notify the DMV so they will know you no longer own the car. Tell the buyer or the other person that you are doing this so they will be aware that they need to transfer the title with DMV.

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