Auto Insurance Claims: Liability for Sold Vehicle, california dmv, release of liability

Question
I sold a vehicle to my girlfriend earlier this year, about two days after I sold it to her and before she could register it into her name she totaled the car. The vehicle prior to her driving it had no insurance for it was not being used. She had a current insurance policy for a different vehicle that actually became active on the car I sold her, the one she totaled, the day after she had crashed. The crashed vehicle was then sold to a dismanteler. I had sent my notice of transfer and release of liabilty to the DMV the day I sold the car to her. I have a copy as well as a bill of sale dated when she purchased the car. Yet almost 10 months later I received a call from some collection agency stateing that I am still the registered owner of the vehicle and that I am responsible for the accident. I then contacted the California DMV which said they never received my notice of transfer and release of liability, I have a copy of both my notice of transfer and release of liability as well as a bill of sale, I have been liable for other tow charges and have incurred these types of issues before that is why I tried to get everything done properly before I let her drive the vehicle, yet once again I am getting stuck with the bill. My girlfriend acknowledges that she was at fault, and wants to accept responsibility for the accident yet we are unsure where to start I explained this to the collection guy who just threatens me with make the payment or else talk where do you think I should start? Also since she did have current insurance at the time of the accident is her insurance policy completelty un-liable? Is there not some type of roll-over? Thanks in advance for any help.

Answer
Hi Fonziep,
You are NOT financially responsible in this situation.  Make two copies of the transfer of owners interest and the bill of sale.  Mail one of each, with a cover letter explaining the circumstances of her having an accident before she was able to complete the transfer, to DMV and the collection agency by certified mail, return receipt requested.
This will defiantly solve the problem with DMV and if the collection agency continues to contact you by phone or mail, make a report to the Better Business Bureau  in your
home town.  I don't quiet understand your statement 'She had a current insurance policy for a different vehicle that actually became active on the car I sold her, the one she totaled, the day after she had crashed.'
If she had a policy that was in effect on another car on the day she purchased your vehicle, the legal wording under that policy provides her identical coverage on any newly acquired vehicle for 30 days.
If you will send me a PRIVATE follow-up, with your telephone number, I will give you a call to try to understand that statement.
I hope this has been of help.  Please contact me again so we can cover the issue of the policy on her other car.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area 11-25-07 :557 AM PST