The DMV Release of Liability is a form submitted to the Department of Motor Vehicles (DMV) by a vehicle owner that releases them from any future civil liability for things like traffic violations or accidents that may occur after the sale or transfer. The form must include the vehicle's make and model, license plate number, vehicle identification number (VIN), and other pertinent details. Once completed, this document should be kept with the owner's records.

As a car dealer in California, it is important to understand that the DMV Release of Liability form is legally binding, so you must take care when completing this document. When completing this form, it is important to provide all relevant information including make and model, license plate number, and vehicle identification number (VIN). The DMV Release of Liability is an important aspect of selling used cars and must not be taken lightly. Being aware of what responsibilities you need to fulfill can save you from legal trouble down the line.

Without the DMV Release of Liability, you may be held liable for any damages involving the vehicle (including bodily injury monetary damages) and be required to pay for medical or repairs costs out of pocket. This could be in the MILLIONS of dollars! Furthermore, if the driver of the vehicle that causes the damage was uninsured, you may end up stuck with the entire bill and even face legal repercussions depending on your state's regulations.

In addition, not having a DMV Release of Liability properly completed can affect your auto insurance policy. If there is an accident involving a car registered in your name without one, your insurance company may refuse to provide coverage or increase your premiums substantially. This could result in significant and unexpected financial losses.

Therefore, it is essential to submit a DMV Release of Liability properly when transferring the ownership of a vehicle otherwise you may find yourself in an unexpected situation where you are liable for all damages caused by the vehicle despite no longer being its owner.