Legal Question in Personal Injury in Texas

Car Dealership Releases Vehicle Without Insurance

If a car dealership sells a vehicle and allows it to leave the lot without insurance, is that dealership liable for any damages that vehicle may cause in a collision? Can they be sued for damages?


Asked on 6/18/08, 2:00 pm

1 Answer from Attorneys
Roger Merrill Merrill & Associates

Re: Car Dealership Releases Vehicle Without Insurance

I am not aware of any specific law requiring the seller of a vehicle to verify that a purchaser has obtained insurance. I briefly looked in the Texas Transportation Code and did not see anything. Once the title passes, it is the owner's responsibility to make sure the vehicle is insured. My guess is that a seller does not have a duty once the vehicle is sold. For a legal opinion, you might have to pay a lawyer.

You also could contact the Texas DOT, a reputable car dealership, and your insurance agent to see if they know.

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Answered on 6/18/08, 2:53 pm


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