Q&A: The Title Procurement Process

Q: In the process, who is procuring the title from whom?

A: The salvage yard is procuring the title from the insured (or lienholder) on behalf of the insurance company.

Q: Can you describe the original title’s progression from insured to insurer? Where does it ultimately end up?

A: The original title ultimately comes to the salvage yard. The owner is first required to sign the back of the title. The salvage yard then provides title to the state, requesting the salvage title on behalf of the insurance company.

Q: Does the salvage title go to the insured or the salvage yard?

A: The salvage title goes to the salvage yard.

Q: What is the purpose of the salvage title going to the salvage yard?

A: The title is changed to salvage as it is deemed total loss, and the car must be sold with title per state law.

Q: What is the Power of Attorney (POA) letter, and who signs it?

A: POAs come into question when the owner cannot physically sign the title. In that case, the POA allows the salvage yard to execute the title on behalf of the owner.

Q: Who does the POA grant authority to?

A: The POA grants authority to the salvage yard.

Q: Why is the POA granted to the salvage yard?

A: They are given the power to execute the title if the owner physically cannot do so.