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I sold a car and now an insurance company is coming after me for damages the next owner did. What can or should I do?

I filed a release of liability with CA DMV and removed the vehicle from my insurance company within days of selling the vehicle. A month later an insurance company filed a claim with my insurance company. The claim was obviously denied as the vehicle had been removed from my policy. I sent my insurance the release of liability, which they claim to have forwarded on to the claimants insurance. I have since received two letters from the victim's insurance company requesting payment and threats of legal action.

9 Answers

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  • zipper
    Lv 7
    2 years ago

    It sounds like the new owner never registered the vehicle in his name. Were you dummy enough to leave your old plates on it as well? You contact the Insurance Company and tell them the car was sold on the date of sale and who brought it if you know that info. I would also contact the local police and motor vehicle office as well with the same information.

  • Anonymous
    2 years ago

    You just need to inform the insurance comoany that you sold the car on whatever date and send them a copy of the release of liability.

    " which they claim to have forwarded on to the claimants insurance ". Insurance companies make mistakes.

  • 2 years ago

    Did you fill out the proper form to send to the state showing you sold the car? Good, just send a copy of that to the insurance company coming after you.

    The release of liability form is a critical document for all car owners selling their vehicles. Without submitting this document, sellers may find themselves held responsible for tickets or unpaid registration fees. The release of liability form tells the state that a vehicle owner has sold the vehicle and is no longer responsible for it. Although not all states require this form, most do.

    For more, see https://www.dmv.com/guide-to-vehicle-release-of-li...

  • car253
    Lv 7
    2 years ago

    Tell them you sold the car. If they take you to court you will countersue them back for court costs, loss of wages, and emotional distress.

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  • ?
    Lv 6
    2 years ago

    Have you communicated with the threatening insurance company and explained to them the steps you took when you sold the vehicle? Have you provided them with copies or evidence of the documents and release of liability form you submitted? Remember..... They will not continue if/when the evidence stares them in the face.

    You've done all that? Ask your (former) insurance company for advice and for help.

    They won't help? See a lawyer.

  • 2 years ago

    Tell them to **** off.

  • 2 years ago

    Show them your bill of sale.

  • 2 years ago

    Send the insurance company a copy of the release of liability form and a cease and desist letter.

    The cease and desist letter should state that you were not the legal owner of the vehicle at the time of the alleged incident and therefore you are not liable for, nor will you pay any damage cased by the new owner. It should then demand that they immediately cease all attempt to contact you or collect funds from you regarding this alleged incident and that any further contact other than official court notices will be referred to your attorney for consideration of a harassment lawsuit against the company.

  • Anonymous
    2 years ago

    Tell the victim's insurance company that you will be pleased to see them in court. But you will claim all your legal costs and inconvenience against them.

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