Understanding Liability After Selling Your Car: Rights and Responsibilities
Selling a vehicle can be a straightforward process, but sometimes unforeseen complications arise, especially when it comes to liability and insurance. If you’ve recently sold your car and are concerned about potential legal or financial repercussions, it’s important to understand your rights and the steps you’ve taken to protect yourself.
A Common Scenario: Selling a Vehicle and Facing Post-Sale Issues
Imagine this: You’ve completed the sale of your vehicle, signed over the title, and have proof of the transaction — such as a pink slip and a release of liability form. You might think your responsibility ends there. However, sometimes problems surface when the new owner is involved in an incident, like an accident, after the sale.
When an Accident Occurs Post-Sale
Consider a case where the new owner, who purchased the vehicle legally from you, gets into an accident and is found to be uninsured. If the insurance doesn’t cover damages, and the other party or collection agencies like AFNI contact you claiming you owe thousands due to damages, it can be confusing and distressing.
Your Protections and Documentation
In such situations, having concrete documentation is vital:
– Signed Title Transfer: Demonstrates you transferred ownership officially.
– Proof of Release of Liability: Shows you notified authorities and the DMV that you are no longer responsible for the vehicle.
– Police Report: Confirms the new owner as the registered owner at the time of the incident.
– Communication with DMV: Trying to obtain official records to substantiate your claim that you are no longer the owner.
Legal Considerations and Your Liability
Typically, once you have transferred the title and filed a release of liability, your legal responsibility for the vehicle ends. The DMV records and your documentation should support this. However, collection agencies or legal claims can sometimes still reach out, especially if the new owner failed to maintain insurance or was involved in an incident.
What Should You Do Next?
- Maintain All Records: Keep copies of the signed title, release of liability forms, police reports, and any correspondence with authorities or collection agencies.
- Contact the DMV: Verify that they have your information as the seller and that the vehicle is no longer registered in your name.
- Notify the Insurance Company: Ensure your insurance policy is updated and reflects the sale.
- Consult a Legal Professional: If a
