When a vehicle incurs some type of loss event such as major damage, theft, or repair, the title may be designated as a salvage title. The decision to place a title in salvage status is normally made by the insurance company who pays a claim on the vehicle. In some states there are statutory regulations which require an insurer to brand a vehicle with a salvage title. An example may be that a vehicle incurred damage more than 60% of its value. However, an insurance company can decide to place a salvage title brand on any vehicle it decides to, even if there is little or no damage. A salvage title, junk title, rebuilt title, or certificate of destruction are almost always permanent brands on the title which cannot be removed. In rare cases a very complex and expensive process of reconstructing the vehicle and inspection may upgrade a branded title status, but it typically involves more expense than the vehicle is worth.
Salvage titles can normally be registered for road use. In some states an inspection is required to make sure that the vehicle is safe for the road, and that any parts used for repair are legal and have a verified origin. For your own safety make sure that any vehicle you purchase which as a salvage title has operational airbags and valid documentation of the VIN# and all major component parts.
Any attempt to remove, obscure, conceal, or alter a title brand using unauthorized means can be a violation of law often referred to as “title washing” or “title laundering.” The salvage title designation is shared with all 50 states. Evading a title brand is a serious offense. Getting a new title for that purpose is illegal and results is serious criminal penalties.
If you have a salvage title, certificate of destruction, or other branded title, be sure to follow all applicable Federal Laws on title branding:
https://www.gpo.gov/fdsys/pkg/CHRG-109hhrg27254/pdf/CHRG-109hhrg27254.pdf
When an insurance company has paid a claim for a vehicle and taken ownership from the insured, they have the option of processing the title as a certificate of destruction. In this case, the vehicle is intended to be destroyed and never to be used on the road or registered. It is unlikely that a vehicle with a certificate of destruction can ever be issued a valid title for transfer.
A vehicle with a certificate of destruction can sometimes appear to be in acceptable condition. The insurance company decides to prevent the car from road use to limit its liability in the event that the car is driven and is involved in an accident at a later date. If it is proven that an injury in an accident is because the car had some existing defect, the injured person could claim that the insurance company should not have let the car go back on the road.
A vehicle in otherwise good condition can be issued a certificate of destruction if the insurance company thinks that the airbags could be damaged, the frame could be weakened, or simply does not want to spend the money to do a detailed inspection, and just wants to sell it cheap to a junkyard.
For more information on titles for these types of vehicles and how to get a title for a junk vehicle, visit JunkTitle.com
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If you have a salvage title, certificate of destruction, or other branded title, be sure to follow all applicable Federal Laws on title branding.
Obtaining a vehicle title when there is a serious deficiency in the ownership documentation can sometimes be done using a bonded title. In this process, a vehicle title surety bond is purchased equalling the amount of the value of the vehicle. This vehicle title bond covers any claims in the event that a valid claim to the vehicle comes forward in the future. The title bond is used to pay to remove the claim of ownership or lien. The bonded title will have “Bonded” stamp on it for a period of 3 to 5 years. In many cases, the bonded title is more expensive than other title recovery options, but it may be a last resort when other methods are not possible. Contact us to determine if a bonded title or other option is most beneficial.
The requirements to obtain a bonded title vary by state. The bonded title application form can be found online on the state’s Department of Motor Vehicles (DMV) website. Some states also require an inspection of your vehicle before you apply for a bonded title. This can include an emissions inspection, VIN verification, or other general inspection. Inspections will vary by state but are generally completed by licensed garages or other mechanics in your area.
In some cases, residents of non-bonded title states may be able to obtain a bonded title through Vermont. Bonded titles are a valid method of title recovery only in the following states:
A surety bond is an agreement between you, the surety company, and the state DMV that says you are the legal owner of the vehicle. The surety bond also states that if the DMV finds out that there is a discrepancy regarding the ownership of this vehicle, they will not be held liable. In other words, if someone comes forward stating that they own this car and you falsely applied for a bonded title, you will be responsible for reimbursing the DMV for any costs incurred in correcting this situation. The surety bond amount is typically required to be 1.5 times the book value of the vehicle. Most surety bonds cost around $100-$150 to obtain for average valued vehicles. You are not required to pay 1.5x the value of your vehicle, only a small fraction to secure the surety bond.
To be successful in using this method of title recovery, ensure that you learn about all applicable laws in your jurisdiction and abide by all inspection regulations. Even if you’re missing the proper paperwork, if it’s your car, you deserve a title. For assistance with your title recovery, our title experts can help you obtain your bonded title.
In this video, we will discuss the various costs of getting a replacement car title. While the fees do vary by state and the method of title recovery, CarTitles.com will do your preparation for one low flat fee! Don’t waste your time at the DMV. Don’t waste your money on some fly-by-night title service. We will get your title recovery paperwork done correctly, quickly, and legally!
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For as little as $159 for most processes, we will save you the headache and prepare all of the car title paperwork needed to get you a new title. Simply choose the title recovery method you’d like to use and we’ll get started!
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Order Vermont Title LoopholeOrder Deceased Owner Title TransferOrder Bonded Title ProcessOrder Abandoned Vehicle ProcessOrder Prior Owner ContactOrder Lien Release Request LetterPGlmcmFtZSBzcmM9Imh0dHBzOi8vYXBwLmFjdWl0eXNjaGVkdWxpbmcuY29tL3NjaGVkdWxlLnBocD9vd25lcj0xOTQ4ODEyNiZhcHBvaW50bWVudFR5cGU9MjMwNjY0MTAiIHRpdGxlPSJTY2hlZHVsZSBBcHBvaW50bWVudCIgd2lkdGg9IjEwMCUiIGhlaWdodD0iODAwIiBmcmFtZUJvcmRlcj0iMCI+PC9pZnJhbWU+PHNjcmlwdCBzcmM9Imh0dHBzOi8vZW1iZWQuYWN1aXR5c2NoZWR1bGluZy5jb20vanMvZW1iZWQuanMiIHR5cGU9InRleHQvamF2YXNjcmlwdCI+PC9zY3JpcHQ+
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