What if I'm a Co-signer on a vehicle and the other signer gets into an accident?

I'm a co-signer on a car and the person I signed for got into a car accident without my knowledge. It turns out that he didn't keep up the insurance on the car and it had none at the time of the accident. I just got a letter in the mail stating that the Secretary of State is going to suspend my license if I don't come up with like $3,000. I'm wondering what can I do about this, I've requested a hearing and waiting to hear back but I don't know my options are. Will I be held liable for these charges even though I had no knowledge of this incident.