Do I need to retain title to car when filing an auto claim or can I sell the car?

Question Details: I sold my car after my insurance company determined it was a "total loss" due to mechanical reasons. After it was sold, the private party's mechanic determined that the loss was likely due to vandalism. After I reopened the case with the insurance company, the claim was denied on the basis that the sold car was no longer an insurable interest as I no longer retained the title. Should current title holder matter? I had comprehensive coverage at the time the claim was originally opened but unfortunately these details about vandalism did not come to light while I retained title.

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