Maybe since you have one more month of an attorney, see if they can contact the neighbors insurance and work something out. You may have to pay something out of pocket to settle the claim, but it may be better than them winning a large judgment against you. As a former insurance adjuster I can tell you this is a very unique situation. I've never heard anything like it. I would have probably never worried about not having liability coverage on a vehicle that I did not intend to leave my property. What could possible go wrong? But you gave an example of what could go wrong.