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umi thin ki would go the route of the hybrid eg advice. you may have showed evidence of proof of insurance and liscence but it doesnt matter cause if you sold the car to one of your friends, chance are the paper work would be written, and like he said just say he didnt pay for all of it, and you were still driving it till he payed the rest, that is why you still had it insured. like he said the stae just wants your money. so give them a little. its all just paper work . i think its alot easier than swappin the ka.
good luck. all you can do is try.
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