I bought a car in August of 2023 and sold it a couple of days later so I never had it insured, the buyer was supposed to transfer the title and never did. He ended up getting tolls in it and having it impounded in a different state. I took him to court to transfer the title in my home state and won the case so the title is in his name from the date he bought it. But I got a letter from a subrogation division incorporated saying I owe them $50,000 for an accident with the car which happened in February of 2024. What is best case of action in this scenario? And what are the odds I get stuck with the $50,000 bill?
Subrogation from a car I sold
byu/Advanced_Fold_3306 inInsurance
Posted by Advanced_Fold_3306
8 Comments
Well the fact that you had a court of law force him to transfer the title on the correct day is helpful. I would definitely show them that. Did you turn in your plates when you sold it or transfer them to another vehicle? If your state requires a sale affidavit that would be helpful. Bill of sale is always helpful. Where I am we have tag shops where you can be sure that the title is transferred then and there, notarized etc.
Do you have a bill of sale? Did you report the transfer and release of ownership to your DMV?
I’d explain you have a cashed check, a bill of sale and possibly a copy of the for sale ad.
I’m not the owner of the vehicle as of X date. See what they have to say before you add a counter suit for your damages should they sue you
Did you file a Notice of Transfer and Release of Liability or similar right after you sold the car?
Present Bill of Sale, Report of Transfer & Release.
If you don’t have those, offer the car to them, hope they accept the offer, take the loss, and move on.
This is probably not an insurance question, but rather, it is a lawyer question. Do a Google search for lawyers in your area and see if you can get a free consultation.
Which State did this happen in and where were the plates from?
Did you have any other vehicles insured at the time you bought and sold this vehicle?
For that amount of possible loss, I’d hire an attorney.
The insurance company has no motivation for the truth here, they are just looking for someone to charge the $50k to, be it your insurance or your assets.
It’s definitely worth it to have your attorney call them, outline why you aren’t responsible, send them the documentation, and outline the next legal steps you will take should they continue down this road. Now instead of fishing for someone to bill $50k to, they have to worry about a bigger countersuit. They will likely just drop it.