I exchanged insurance with driver #1. We agreed that there was no damage and joked about situation. Now, months later I received a massive bill. I didn't have insurance at the time. What can I do? There were no witnesses.
As I am not licensed in your state, I can only provide you with some general guidance. I suggest that you contact a civil defense attorney in your area and discuss the situation in detail with him or her.
Based on your scenario, it would appear that you are not at fault and the at fault driver fled the scene. Under this scenario car 3 will be able to access their uninsured motorist coverage to pay for their damages.
Your predicament illustrates why it is very important that anyone who owns or operates a vehicle should maintain automobile liability insurance on the vehicle. If you had been insured, your carrier would take on the burden of dealing with car 3.
There are a few more facts needed to determine how best to advise you.
Was there damage to the rear of your car? Were you hit into the car in front of you, or did you drive and then hit the car in front of you?
If you were simply unable to stop after being hit, then you are not at fault. You are not responsible for those claimed damages, and you are not responsible for paying that bill. You may need to hire an attorney to defend you against the claim, but as long as the driver in front of you agrees with your version (and his interest may have "re-colored" the way he remembers what happened) then you should not be made to pay for that.
