I've heard I may need to show the title of my car to get an auto
insurance policy, is this true? What if I don't have it
You're not normally required to show the title of your car to get
an auto insurance policy for it.
Car insurance companies understand that not everyone has easy
access to the title of their vehicle. For example, if the
vehicle is financed, then the lienholder will usually keep the
title in its possession until you've paid off the loan. Or,
leasing a car
, the leasing company will hold the car's title in its name (though
lessees are allowed to register the car).
While your title isn't needed to shop for auto insurance, you
may need to show that you have an
in a vehicle in order to purchase a car insurance policy for
Possessing an insurance interest in a vehicle essentially means
that you'd suffer an economic loss if it were damaged.
Typically, those considered to have an insurable interest in a
vehicle are owners, lienholders and co-signers - basically, those
who can register the vehicle.
To confirm insurable interest, you may need to provide the car's
registration in your name. If you've just bought the vehicle, then
showing a title signed over to you or a bill of sale in your name
may also work as proof with some insurers.
Proving insurable interest also helps verify with the car
insurance company that you're not involved in any fraudulent
trying to insure your sister's car for her to get
Auto insurance providers will get your registration information
directly from your state's department of motor vehicles, or through
a third-party vendor that gathers all states' DMV information for
it, by using the vehicle's vehicle identification number (VIN) you
provide during the quoting or purchasing process.
This information will confirm that you have an insurable
interest in the vehicle, as well as verify the make, model, and
other specific information about the vehicle you supplied is
correct. The report may also note if your vehicle has a
branded title, which sometimes comes as a
surprise to the vehicle owner
A branded title - meaning salvage or rebuilt title - can cause
issues with obtaining coverage for a vehicle.
Some auto insurers won't offer any type of coverage for vehicles
of this type. Others will offer liability coverage for the
vehicle but not physical damage coverages of collision and
comprehensive. And a few won't restrict the coverages you can
place on it.
When shopping for car insurance for your vehicle, remember to
shop around with multiple auto insurance providers to ensure you
are getting the best rates possible. You can save hundreds,
if not thousands, by taking a few minutes to answer questions about
vehicles and drivers and get multiple quotes from a variety of car