Transferring Vehicle Title to Insurance: A Comprehensive Guide

If you get into a severe accident, you may have to sign a title over to your insurance company. This situation can either be temporary or permanent, depending on whether you want to keep your car. You can also sign over your title to your insurance company to sell your damaged vehicle to a junkyard, or you can repurchase your car to sell it on your own.

How to Sign Your Title to Your Insurance Company

Step 1

Discuss your car accident with your insurance company and schedule a date for your car to be assessed. On the date of assessment, your insurance agent may tell you that the insurance company has assessed your car and declared it a total loss. That means you have to sign over your title of ownership to the insurance company.

Step 2

Set up a date to bring your title to your insurance agent. On that date, you will formally sign the title over to the insurance company, who will apply for a salvage title on your behalf if you decide to keep the car. Your insurance company will apply to the state government to obtain a salvage title.

Step 3

Purchase the car back from your insurance company after they have obtained the salvage title. Since your car is heavily damaged, you would pay for an amount substantially reduced from the original price of the car. However, if your insurance company feels it is too risky to have a salvage car on the road, you may not be able to purchase the car back.

Step 4

Have your insurance agency sell the car to a salvage yard if you want to get rid of the car. Making this decision also means you sign your title over to your insurance company, who will then pay you for the actual value of the car.

Warning

Know that once you get a salvage title on your car, you can't remove it. It is there as a permanent record for as long as you own that vehicle.