Sold Car, New Owner Crashed It and I Think Tried to Claim under My Insurance Because I Did Not Cancel

itsdougie on 07/02/2018 - 23:27
Last edited 08/02/2018 - 10:09 by 1 other user

I sold my car late december and submitted the change of ownership paperwork but I did not cancel the insurance as I completely forgot to do so and went on holidays. The new owner has had an accident and I suspect has not completed his transfer of ownership and has no insurance. I don’t have his number so I am unable to call.

The new owner didn’t contact me to tell me about the accident it was actually my insurance company that called to advise me there is a claim against the owner which subsequently I still am. I advised insurance otherwise and have since gotten them to cancel the policy, my insurance guy told me there is extra paperwork I need to complete and is sending me something in the mail.

I am hoping that this is done and dusted but does the ozbargain community know if there may be anything that may bite me in the ass?

Poll Options

  • 23
    You are doomed
  • 19
    You are OK
Automotive

Comments

  • chinezejew on 07/02/2018 - 23:33

    How much is the cost of excess?

    • itsdougie on 07/02/2018 - 23:34

      about 800

      • chinezejew on 07/02/2018 - 23:35
        +7

        Insurer is likely to not want to cover. And with some paperwork from you that confirms you don't own the car.

        You shouldn't have to be worried.

  • KaTst3R on 07/02/2018 - 23:46
    +2

    Surprised that the new owner knew exactly which insurance company to go to. You dont usually talk about your insurance policy when you sell your car since that is quite private unless you have mentioned that before to him.

    • follow on 07/02/2018 - 23:51

      he likely just gave op's name and address seeing as you're not required to show id, just exchange details.

      • KaTst3R on 07/02/2018 - 23:52

        that would be insurance fraud, a felony.

        • follow on 07/02/2018 - 23:52

          keen to hear op's response.

        • whooah1979 on 08/02/2018 - 06:13
          +10

          insurance fraud, a felony.

          Only if this were the USA.

    • itsdougie on 08/02/2018 - 01:23
      +1

      Not sure but there is a possibility in the event of an accident I may have left insurance details in my service book that I have overlooked when clearing out the car.

  • follow on 07/02/2018 - 23:53
    +1

    did you complete transfer forms on your end?

    • itsdougie on 08/02/2018 - 01:27

      Yes, I completed the notice of disposal and lodged it within a couple days of selling the vehicle

      • follow on 08/02/2018 - 01:29
        +10

        nothing to worry about then

        • itsdougie on 08/02/2018 - 23:21

          Thanks for the reassurance

      • Caped Baldy on 08/02/2018 - 08:23
        +1

        Check with the authority and got some form of written confirmation. Provide that to your insurance company.

  • [Deactivated] on 08/02/2018 - 00:08
    -1

    not sure if serious.

  • Yttrium on 08/02/2018 - 00:16

    OP plz respond.

  • Slippery Fish on 08/02/2018 - 00:30

    I'm sorry bra, I just couldn't afford insurance. Be a bra and take one for me.

    • Aniseed Steed on 08/02/2018 - 03:49
      +7

      "Be a bra and take one for me" - I can't be a bra but I can hold your tits for you, both of them.

      • Slippery Fish on 08/02/2018 - 08:56

        Manboobie holder hmm

        • Forfiet on 08/02/2018 - 10:33

          The right support is a serious matter!

  • Euphemistic on 08/02/2018 - 06:17
    +2

    Your insurance policy. Tell them you aren’t making a claim if you submitted the notice if disposal it’s not your car even if the buyer hasn’t transferred the ownership.

  • DarkOz on 08/02/2018 - 07:12
    +3

    I am sure if the insurance is being paid out it would be paid out under your registered details, right? Just sit back, relax and wait for the free money!

    • itsdougie on 08/02/2018 - 23:22

      I like but he might send bikies

  • Ryanek on 08/02/2018 - 10:05
    +1

    The new owner didn't file the claim, his insurance company did!

  • Randxyz123 on 08/02/2018 - 10:34
    +1

    Call your insurance and cancel the policy.

    Send them the notice of disposal and tell them you aren’t making a claim.

    Find it hard to believe you don’t have the new owners number though…

    • itsdougie on 08/02/2018 - 23:20

      The new owner called on a private number, he looked at the car, he called next day on a private number again, rocked up and paid me in cash. simple.I have his licence details but that is about all, he lives pretty far away too so not worth my while if all fingers point to him.

      So i never got his number, is that too far fetched?

  • blitz on 08/02/2018 - 10:46

    When the insurance company called you, did you verify that it was really the insurance company? I.e. did you call them back on their official number?

  • poboy on 08/02/2018 - 10:56
    +3

    This is a flaw in the transfer of ownership system. It relies on the new owner submitting the paperwork. If they don't, they can cause difficulty for the original owner. Happened to me with speed camera fines. This is what we did to protect ourselves, making it a cinch to resolve:

    When the new owner takes the car and signs all the forms - scan/or take a photo of them before the owner takes them. Also write the TIME of transfer (not just the date) on the form. You now have all the transfer evidence.

    You must always protect yourself from risk, despite how many smiles and assurances given. Blame your insistence on 'what happened to a friend' if you have to.

    The insurance thing is as other people noted - don't make a claim - just cancel the policy.

    Good luck.

    • Euphemistic on 08/02/2018 - 13:58
      +2

      In NSW at least, the current owner submits a notice of disposal form (online, immediate if you want) to let the registration authority know the car is no longer theirs. The new owner is also then responsible to transfer the ownership to their name. If the new owner fails to transfer, the original owner is covered by the notice of disposal. The system works.

      • poboy on 08/02/2018 - 18:52
        +1

        That sounds better. Vic doesn't do this.

    • itsdougie on 08/02/2018 - 23:24

      Yes this it is, when insurance called they mentioned the vehicle title is still under my name. So it doesn't actually change ownership until the new owner submits their transfer of ownership paperwork even though i already submitted the disposal notice.

      • whooah1979 on 09/02/2018 - 06:11

        So it doesn't actually change ownership

        it's not ownership. the correct definition is registered operator. meaning the owner and the registered operator can be two different entities.

        when insurance called they mentioned the vehicle title is still under my name.

        the insurer is wrong. the only thing that the old registered operator has to do is to submit the notice of disposal that is on the back of the registration certificate. they can do it in person or online.
        https://www.service.nsw.gov.au/transaction/submit-notice-dis…
        send your insurer a copy of the notice of disposal transaction receipt. the receipt is timestamped.

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