Who's responsible?

I have a 21 year old son who lives with his mother. When he graduated 3 years ago, I bought a car in my name and gave it to him as a graduation present. I found out later that his mother uses the car more often than him. I didn't want to be financially responsible in case she gets involved in an accident so I had the title and registration transferred in his name. He then told me that his mother got their own auto liability insurance for the car. I forgot to cancel my own liabilty insurance for the car and just let it lapse six months later.

Fast forward to now. I was just contacted by my former insurance company and they told me that the State of Indiana filed a claim against me and was seeking reimbursement for a damage that my son apparently did on a traffic sign. It appears that my son ran over a traffic sign a month after I transferred the title to him. My son and his mother did not want to pay it and don't care whether his DL gets suspended.

My questions are:

1. Am I financially responsible for the damages even if I legally do not own the vehicle when the accident occurred?

2. Since I still have insurance coverange on the vehicle at the time of the accident, is it still valid even though I do not own the vehicle anymore?

3. Does the State of Indiana have the right to seek damages on a previous owner of the vehicle?

I appreciate any input anyone can offer in this matter. Thank you.

domin8:

Am I financially responsible for the damages even if I legally do not own the vehicle when the accident occurred?

Of course not.

The question, however, is can you prove you did not legally own the vehicle at the time of the accident?

Do you have a signed and dated bill of sale?

Do you have a copy of the signed and dated title?

Do you have a copy of written and dated notification to the DMV of the sale. This does not appear to have been statutorily required by Indiana but would have been a good idea.

Did you take off the license plates when you signed over the title? Apparent'y not. According to the BMV website:

"You, as the vehicle's seller, should remove the license plate from the vehicle at the time of the transaction. It is the purchaser's responsibility to obtain a new title and to register the vehicle."

http://www.in.gov/bmv/...

domin8:

Since I still have insurance coverange on the vehicle at the time of the accident, is it still valid even though I do not own the vehicle anymore?

Yes.

As long as coverage was in effect on the date of the accident you an still make the claim even though you no longer own the car or have the policy.

domin8:

Does the State of Indiana have the right to seek damages on a previous owner of the vehicle?

No.

But it still begs the question.

How do you prove you weren't the owner on the date of the accident?