Insurance/Car Title

[TNBSMommy]

What is the name of your state? TN

We were selling a car for a friend's girlfriend. The friend and GF had moved to Belize. They left, in our possession, a signed bill of sale and the title of the car, also signed. Being that we live in the middle of nowhere, my husband obtained permission to drive the car with a for sale sign on it, to get exposure. Long story short, my husband and neighbor were in a wreck, having lost control of the car on a rainy day. My husband was driving. No other cars were involved. The woman who owned the car had let her insurance lapse on it, which we found out afterwards. We do have insurance on ourselves/our cars. After the wreck, and everything settled down a little, we started looking into at least having our insurance pay for our neighbor's bills. We also told the owner(through the bf) that we would pay for the car, making payments. Which we were told she was ok with.
We were told our insurance would have no problem covering the neighbor's bills if we had permission to drive the car, and can verify that. The only way we had to get a hold of the owner was through the boyfriends email address. The insurance company called a couple of days ago, saying they couldn't get a hold of the owner, so I emailed the bf, and gave him the number/name and details on what was needed. The bf called yesterday. They have broken up, and he told me she was
a)thinking of suing and
b) her mother was wanting her to report the car as stolen.

He told me he talked her out of suing us, but I am worried about what she may tell the insurance company when they are able to get in touch with her.

I don't see them getting away with reporting the car as stolen seeing as how we have a signed title and bill of sale. But is there anything else we can do to protect ourselves, and make sure the insurance company isn't mislead?

 

[lwpat]

The first thing you need to do is to sit down with your insurance agent to find out about your coverage. It is likely that you will be covered for the damage to the vehicle and the medical bills. You may also have a lawsuit from your neighbor depending on the extent of the injuries. What an adjuster says he will do and what he actually does are two different things. Your agent is a better resource. The fact that you have a signed title and bill of sale in your possession may be enough for him to convince the adjuster.

It is to the owner's advantage to have your insurance accept liability so try to get her in contact with your insurance company. Why are you making payments on the car? Do not send her any money. It is the responsibility of the insurance company to either repair the car or pay the owner the current value.