What is a release of liability?

Question

What is a release of liability?

Answer 1

It is a form sent to your state DMV advising them that you are no longer the owner of a vehicle.

In case the new owner does not do the right  thing and have the title transferred in to his/her name, the state will know that there is another owner of the vehicle. The form will show the new owners name and address. To have a copy of the form you send to the state will ensure that you are not responsible for anything involving the vehicle (tickets/hit and run/registration).

Answer 2

It's a form you sign that releases the other party of any future liability.  Let's say you get into a car accident that was the other person's fault.  You file a claim against their insurance company, and the company offers you $10,000.00.  You decide to accept the offer.  You'd sign a release of liability that basically says this case is over and done with forever and ever, Amen.  So if you end up needing more medical treatment or therapy as a result of the accident, you can't go back and file a claim or sue the insurance company because you signed the release of liability.  Make sense?