Why does the auto insurance company want to see your title?
The insurance company wants to see your title after an accident to declare your vehicle a total loss. Estimated repair costs of between 50-100 percent of the car's actual cash value can result in the vehicle being totaled by your provider, and the auto insurance company wants to see your title to compare it to the repair costs in your claim. If you want to get the most out of your provider, comparison shop auto insurance companies online to find the best coverage. Enter your ZIP code below to get started.
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Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
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UPDATED: Aug 15, 2023
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Aug 15, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
| Summary | From Experts... |
|---|---|
| Vehicle total loss thresholds vary between 50 and 100% depending on the state | Matthiesen, Wickert, and Lehrer, Attorneys at Law |
| Insurance companies use the actual cash value of your vehicle to determine total loss | Nolo |
Has your insurance company ever requested to see your vehicle title? If so, you may be wondering why. In some cases, you may be asked for your vehicle title when you are looking to purchase an insurance policy and times, an insurer may request to see your vehicle title if you’ve been in an accident.
So why does the insurance company want to see my title? We know finding insurance information can be frustrating. Not to worry, we’ve done the work for you. In this article, we’ll discuss why insurance companies may request to see your vehicle title, how to tell if your auto insurance company is reputable, and more.
Read on to discover everything you need to know about how your vehicle title relates to your insurance coverage. Before we get started, take a moment to use your ZIP code and get a free quote on auto insurance.
Auto Insurance & Vehicle Titles
While it is not typical, there are some situations in which insurance companies may request to see your vehicle title.
Why? Keep reading to find out and when it can be in your best interest to provide it. We’ll also discuss insurable interest, how liens can affect your vehicle title, and the importance of being honest about where your vehicle is parked at night.
Why do auto insurance companies request to see vehicle titles after an auto accident?
In most cases, an insurer will only ask to see your title after an accident. They may ask to see your title after your car got totaled or almost totaled, for example.
This is because if the vehicle may be totaled, the insurance company cannot calculate total loss without the title (unless you’re planning to salvage the vehicle after the insurance payout, in which case you need to look for auto insurance for a car with a salvage title).
Often, however, if you’re in an accident, the request to see the vehicle title is simply a part of the claims process to confirm ownership of the vehicle.
What does it mean when my vehicle is totaled?
When your vehicle is totaled (also referred to as a total loss) it means that post-accident, the claims adjuster has estimated the cost of repairs and determined it is more efficient to replace your vehicle.
The percentage of the cost of repairs compared to the actual cash value (ACV) of your vehicle, known as a total loss threshold, varies by state but can be anywhere from 50–100 percent of the vehicle’s current value.
Watch this video to learn more about calculating the actual cash value of a car.
Read more: What is the difference between agreed value and actual cash value auto insurance coverage?
When your vehicle is totaled, your vehicle title will be changed from a clean title to a salvage, rebuilt, or junk title, but the terms depend on the state.
- New Mexico – a salvage title refers to a vehicle that was a total loss, but the term is also applied to a total loss vehicle that was repaired. If a vehicle cannot be repaired, the title will be marked “non-repairable.”
- Utah – a salvage title is used for vehicles that are a total loss, but when the vehicle is then repaired/rebuilt to acceptable standards, the title is re-branded as “rebuilt/restored.”
There are reasons other than total loss car insurance settlement calculations for an insurance company to request a title. Read on to learn more.
What are some other reasons insurance companies request to see a vehicle title?
Some insurance companies may ask to see the vehicle’s title when you’re buying insurance. Why? The insurance company wants to verify you’re the legitimate, registered owner of the vehicle you’re insuring.
If you’re not comfortable providing your title to your insurer, you can switch to another auto insurance company. Many insurers won’t ask to see your title when you’re purchasing a policy (however, in the event of an accident, as noted above, you may be required to produce your vehicle title).
What is insurable interest?
You can buy non-owner’s auto insurance on vehicles you don’t technically own. However, most auto insurance policies are designed to cover cars you personally own. If your insurer asks to see your title, they’re simply verifying you have an insurable interest in the vehicle.
What’s insurable interest? According to the Insurance Risk Management Institute, it’s defined as “…an interest by the insured person in the value of the subject of insurance, including any legal or financial relationship. Insurable interest usually results from property rights, contract rights, and potential legal liability.”
Companies want to know you do actually own your vehicle to confirm you have both the property rights and the legal or financial responsibility for it.
In the event of an accident; insurance companies may request to see your vehicle title to confirm ownership as a part of the claims process. The insurance company is protecting both your interests and their own, as negotiating an auto insurance settlement can get complicated in situations where insurable interest is up for debate.
Read more: What happens if I disagree with Liberty Mutual’s decision on my auto insurance claim?
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What if my vehicle has a lien?
The insurance company may want to see your title if there’s a lien on the vehicle. When there’s a lien on the vehicle but not listed on the policy, it can significantly complicate the claims process, particularly in the event of a total loss. In this situation, the insurer may ask to see the title to protect the lienholder’s interest.
Why do insurers care where I park my vehicle at night?
Insurance companies may ask to see the title of your vehicle to verify its location at night, because insurance rates can change significantly based on where your vehicle is parked at night.
This can mean insurance costs are higher in some ZIP codes, resulting in paying up to twice as much for auto insurance than a ZIP code in a safer part of town. As an example, we pulled the 25 most and 25 least expensive ZIP codes in Georgia by insurance rates. Take a look at the ZIP codes with the lowest rates first.
| 25 Cheapest GA Auto Insurance Rates by ZIP Codes | Average Annual Auto Insurance Rates |
|---|---|
| 31699 | $3,976.82 |
| 31605 | $3,977.77 |
| 31606 | $4,020.26 |
| 31632 | $4,022.80 |
| 31698 | $4,030.81 |
| 31602 | $4,044.80 |
| 31601 | $4,058.10 |
| 31625 | $4,079.37 |
| 31638 | $4,093.21 |
| 31643 | $4,095.01 |
| 31750 | $4,197.86 |
| 31783 | $4,202.67 |
| 31079 | $4,205.41 |
| 31629 | $4,206.31 |
| 31626 | $4,210.42 |
| 31792 | $4,231.01 |
| 31757 | $4,236.28 |
| 31627 | $4,244.75 |
| 31620 | $4,247.91 |
| 31778 | $4,284.48 |
| 31738 | $4,289.46 |
| 31558 | $4,291.24 |
| 31714 | $4,295.11 |
| 31569 | $4,296.42 |
| 31793 | $4,300.63 |
If you’re moving to Georgia, you might want to avoid these ZIP codes, which have the highest auto insurance rates in the state.
| 25 Most Expensive GA Auto Insurance Rates by ZIP codes | Average Annual Auto Insurance Rates |
|---|---|
| 30314 | $6,991.02 |
| 30021 | $6,944.22 |
| 30088 | $6,913.82 |
| 30083 | $6,899.09 |
| 30035 | $6,893.89 |
| 30334 | $6,893.38 |
| 30315 | $6,889.33 |
| 30310 | $6,880.31 |
| 30304 | $6,835.84 |
| 30303 | $6,788.76 |
| 30311 | $6,750.28 |
| 30058 | $6,733.62 |
| 30038 | $6,730.99 |
| 30032 | $6,699.34 |
| 30034 | $6,694.70 |
| 30079 | $6,686.79 |
| 30331 | $6,657.55 |
| 30316 | $6,647.47 |
| 30318 | $6,621.02 |
| 30312 | $6,620.73 |
| 30313 | $6,583.09 |
| 30072 | $6,580.33 |
| 30349 | $6,554.04 |
| 30291 | $6,486.71 |
| 30087 | $6,469.78 |
The ZIP code with the most expensive insurance rates in the state (30088) has an average auto insurance rate of $6,913.82, which is 73.85 percent higher than the ZIP code with the cheapest rates in the state (31699), whose average rate is $3,976.82.
As another example, take a look at this video to see how ZIP codes affect insurance rates in Missouri.
You must list the “garaging” location of your vehicle accurately on your auto insurance policy, even if it means your rates are higher. If insurers suspect you’re lying about the garaging location, they may ask to see your title.
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Trustworthy Auto Insurance Companies
Regardless of your situation, you want to be insured by a reliable and trustworthy auto insurance company. If you’re asked to provide your vehicle title when purchasing an insurance policy, company trustworthiness is especially important.
How do you know if a company is trustworthy?
One way is to check the company’s customer satisfaction and financial ratings. Read on to find out more information about these ratings and how some of the largest insurers in the country stack up based on this information.
What do customers say about the largest insurance companies in the country?
J.D. Power studies company customer satisfaction in the auto insurance industry, among others. They have been researching customer satisfaction in the auto insurance industry for over 20 years, providing their findings to the public.
Their J.D. Power Circle Rating™ system is based on a 1,000-point scale that is then reduced to the five-point Power Circle Rating™. We’ve summarized their system in this list.
- Five Circles – among the best
- Four Circles – better than most
- Three Circles – about average
- Two Circles – the rest
In this table, we summarized the Power Circle Rating™ for the top companies in each region across the country.
JD Power Circle Ratings for Auto Insurance Companies
J.D. Power Circle Ratings for Auto Insurance Companies by Region| Companies | California Ratings | Central Ratings | Florida Ratings | Mid-Atlantic Ratings | New England Ratings | New York Ratings | North Central Ratings | Northwest Ratings | Southeast Ratings | Southwest Ratings | Texas Ratings |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Alfa Insurance | NA | NA | NA | NA | NA | NA | NA | NA | 4 circles | NA | NA |
| Allstate | 3 circles | 4 circles | 5 circles | 2 circles | 4 circles | 3 circles | 3 circles | 3 circles | 2 circles | 3 circles | 3 circles |
| American Family | NA | 3 circles | NA | NA | NA | NA | 3 circles | 4 circles | NA | 3 circles | NA |
| Ameriprise | 4 circles | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA |
| Amica Mutual | NA | NA | NA | NA | 5 circles | NA | NA | NA | NA | NA | NA |
| Arbella | NA | NA | NA | NA | 2 circles | NA | NA | NA | NA | NA | NA |
| Auto Club of Southern California Insurance Group | 4 circles | 3 circles | NA | NA | NA | NA | NA | NA | NA | NA | 3 circles |
| Auto-Owners Insurance | NA | 5 circles | 2 circles | NA | NA | NA | 3 circles | NA | 4 circles | NA | NA |
| Automobile Club Group | NA | NA | NA | NA | NA | NA | 2 circles | NA | NA | NA | NA |
| Cincinnati Insurance | NA | NA | NA | NA | NA | NA | 2 circles | NA | NA | NA | NA |
| COUNTRY Financial | NA | NA | NA | NA | NA | NA | 4 circles | NA | NA | NA | NA |
| CSAA Insurance Group | 3 circles | NA | NA | 2 circles | NA | NA | NA | NA | NA | 3 circles | NA |
| Erie Insurance | NA | NA | NA | 5 circles | NA | NA | 5 circles | NA | 4 circles | NA | NA |
| Esurance | 5 circles | NA | 5 circles | NA | NA | NA | 3 circles | NA | NA | NA | NA |
| Farm Bureau Insurance – Tennessee | NA | NA | NA | NA | NA | NA | NA | NA | 5 circles | NA | NA |
| Farm Bureau Mutual | NA | 3 circles | NA | NA | NA | NA | NA | NA | NA | NA | NA |
| Farmers | 3 circles | 2 circles | NA | 2 circles | NA | NA | 3 circles | 3 circles | NA | 3 circles | 3 circles |
| Geico | 4 circles | 4 circles | 3 circles | 4 circles | 4 circles | 3 circles | 3 circles | 3 circles | 3 circles | 3 circles | 3 circles |
| Grance Insurance | NA | NA | NA | NA | NA | NA | 3 circles | NA | NA | NA | NA |
| IN Farm Bureau | NA | NA | NA | NA | NA | NA | 5 circles | NA | NA | NA | NA |
| Kemper | 3 circles | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA |
| KY Farm Bureau | NA | NA | NA | NA | NA | NA | NA | NA | 3 circles | NA | NA |
| Liberty Mutual | 3 circles | 2 circles | 3 circles | 2 circles | 2 circles | 3 circles | 2 circles | 2 circles | 2 circles | 3 circles | 2 circles |
| MAPFRE Insurance | NA | NA | NA | NA | 2 circles | NA | NA | NA | NA | NA | NA |
| Mercury | 3 circles | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA |
| MetLife | NA | NA | 2 circles | NA | 2 circles | 4 circles | 2 circles | NA | 2 circles | NA | NA |
| MI Farm Bureau | NA | NA | NA | NA | NA | NA | 4 circles | NA | NA | NA | NA |
| National General | NA | NA | NA | NA | NA | NA | NA | NA | 2 circles | NA | NA |
| Nationwide | 2 circles | 2 circles | 2 circles | 2 circles | 3 circles | 3 circles | 3 circles | 2 circles | 3 circles | 2 circles | 3 circles |
| NC Farm Bureau | NA | NA | NA | NA | NA | NA | NA | NA | 4 circles | NA | NA |
| New York Central Mutual | NA | NA | NA | NA | NA | 5 circles | NA | NA | NA | NA | NA |
| NJM Insurance Co | NA | NA | NA | 5 circles | NA | NA | NA | NA | NA | NA | NA |
| PEMCO | NA | NA | NA | NA | NA | NA | NA | 5 circles | NA | NA | NA |
| Plymouth Rock Assurance | NA | NA | NA | 2 circles | 2 circles | NA | NA | NA | NA | NA | NA |
| Progressive | 3 circles | 3 circles | 2 circles | 2 circles | 3 circles | 2 circles | 3 circles | 2 circles | 2 circles | 2 circles | 2 circles |
| Safeco | 3 circles | 2 circles | 2 circles | NA | 2 circles | NA | 2 circles | 3 circles | 3 circles | 3 circles | NA |
| Safety Insurance | NA | NA | NA | NA | 2 circles | NA | NA | NA | NA | NA | NA |
| Shelter | NA | 5 circles | NA | NA | NA | NA | NA | NA | NA | NA | NA |
| State Farm | 4 circles | 3 circles | 3 circles | 3 circles | 4 circles | 4 circles | 4 circles | 3 circles | 4 circles | 5 circles | 3 circles |
| The Hanover | NA | NA | NA | NA | 3 circles | NA | 2 circles | NA | NA | NA | NA |
| The Hartford | 3 circles | NA | 2 circles | 4 circles | NA | NA | 4 circles | 4 circles | NA | 5 circles | NA |
| Travelers | NA | 3 circles | 2 circles | 2 circles | 2 circles | 4 circles | 2 circles | NA | 2 circles | 2 circles | NA |
| TX Farm Bureau | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | 5 circles |
| USAA | 5 circles | 5 circles | 5 circles | 5 circles | 5 circles | 5 circles | 5 circles | 5 circles | 5 circles | 5 circles | 5 circles |
| Wawanesa | 4 circles | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA |
| Westfield | NA | NA | NA | NA | NA | NA | 5 circles | NA | NA | NA | NA |
J.D. Power customer satisfaction ratings for companies vary by region. For example, Allstate has a circle rating of:
Read more: What happens if I disagree with Allstate’s decision on my auto insurance claim?
- Two in the Mid-Atlantic region
- Three in California
- Four in the Central region
- Five in Florida
What are the financial ratings for some of the largest insurance companies in the country?
In some cases (like Liberty Mutual, for example), you can pull a company’s published financial statements from their website. However, this requires time, effort, and understanding exactly what the financial statements indicate about the company, which can be time-consuming and frustrating.
That’s what companies like A.M. Best are for; they do the hard work for you (and potential investors). They look at a variety of factors, including financial statements, to generate a credit rating based on financial strength and outlook for the future.
Under their rating structure, companies are considered financially solid and have a stable outlook for the future if they receive a rating of A- or better.
Watch this video to learn a bit more about A.M. Best.
https://www.youtube.com/watch?v=P5nClTxqZ1w
Take a look at this table to see a summary of the A.M. Best ratings for some of the largest companies in the country.
| Companies | A.M. Best Rating | Financial Outlook |
|---|---|---|
| Allstate | A+ | Stable |
| American Family | A+ | Stable |
| Farmers | A | Stable |
| Geico | A++ | Stable |
| Liberty Mutual | A | Stable |
| Nationwide | A+ | Stable |
| Progressive | A+ | Stable |
| State Farm | A++ | Stable |
| Travelers | A++ | Stable |
| USAA | A++ | Stable |
Read more: What happens if I disagree with Farmers’ decision on my auto insurance claim?
If you purchase a policy from one of the listed companies, it’s clear that you’re in good shape from the perspective of company financial stability.
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The Bottom Line: Why does the insurance company want to see my title?
Ultimately, if auto insurance companies request to see your vehicle title, they aren’t scamming you. They’re simply doing their due diligence to ensure you own the vehicle, park it where you say you do, or they need it to process an accident claim.
It’s important to confirm your insurance company is trustworthy, which is why looking at data from companies like J.D. Power and A.M. Best can help you decide which insurance company is right for you.
Now that we’ve covered information on your vehicle title and when and why insurance companies might ask to see it, take a moment to use your ZIP code to get a free quote on auto insurance.
Frequently Asked Questions
Why do auto insurance companies request to see vehicle titles after an auto accident?
Auto insurance companies may request to see vehicle titles after an accident to calculate total loss, confirm ownership, and verify insurable interest.
What does it mean when my vehicle is totaled?
When a vehicle is totaled, it means that the cost of repairs exceeds a certain percentage (usually 50-100%) of the vehicle’s actual cash value (ACV), leading to the decision to replace the vehicle.
What are some other reasons insurance companies request to see a vehicle title?
Insurance companies may request to see a vehicle title when you’re buying insurance to verify ownership, and they may also request it if there’s a lien on the vehicle to protect the lienholder’s interest.
Why do insurers care where I park my vehicle at night?
Insurance companies may ask to see the title of your vehicle to verify its location at night because insurance rates can be affected by where the vehicle is parked. Rates can vary significantly based on ZIP codes.
How do I know if an insurance company is trustworthy?
To determine the trustworthiness of an insurance company, you can check customer satisfaction ratings from sources like J.D. Power and financial ratings from agencies like A.M. Best.
Do I have to accept the insurers’ offer on a totaled vehicle?
If you feel insurance is not paying enough for your totaled car, you don’t have to accept the offer for your totaled vehicle. You can negotiate with your insurer, particularly on their initial offer, or if you believe the insurance isn’t paying enough for your totaled car.
When should I sign over the title to my vehicle?
In general, the only time you’ll sign over the title of your vehicle to someone else (either a person or entity) is if you sell it. If you don’t own your vehicle outright, you may need to work with whoever financed your purchase to actually transfer the title.
How do you sign over a title to an insurance company?
The process of signing over or releasing your car to your insurance company is simple. You and the insurer will need to reach an agreement on the fair market value of your vehicle.
Do I need to notify the DMV if my car is totaled?
This depends on whether or not you’re keeping the vehicle. If you accept the offer from your insurance company to sell the vehicle for parts, you’ll need to buy a new car after a total loss, and you won’t need to report that your vehicle was totaled.
Can I dispute a total loss determination?
If you disagree with the total loss determination, you have the right to dispute it. In that case, your insurance company will likely require evidence to support your dispute, after which they will re-review the case.
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Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.