I did an even trade with a guy for his Lexus and I sold his Lexus the following day to someone else. I did not write any information down on the pink slip so basically it was like him purchasing the vehicle from the original owner.
Now the car has been on an accident and the insurance provider is coming to me asking me to pay for the car because the car was last under my name.
I NEVER REGISTERED THE CAR, so I am assuming the guy i traded the car with used my pink slip information and gave it to the DMV but i did not consider that considering i did not own the car for longer than 48 hours.
The person whom i sold the car too did not go to the DMV and register the vehicle he just took the pink slip but I did not think to register the vehicle to release liability of the vehicle because I had no plans on keeping it.
Now the insurance company is claiming I did a hit and run and is making me pay for something i didn’t do.
Can they do that? Thank you.
Yes they can. Registration does not mean ownership. You purchase the car and were the owner for at least one hour. You were the prior owner. If registration is required to sell a car, you would be selling someone else’s vehicle, which you have not power to do. This is why registration is not a requirement for ownership.