What is a Title?
A title is an official document issued by a state’s motor vehicle department (or equivalent agency) that serves as proof of ownership for a vehicle or vessel. This document includes key information such as the owner’s name, the vehicle identification number (VIN), and other pertinent details about the vehicle, like its make, model, and year.
In personal and business insurance, having a valid title is essential when purchasing or insuring a vehicle. Insurance companies often require a copy of the title to verify ownership before providing coverage. Additionally, the title is necessary when filing insurance claims, especially in situations involving total loss or damage that may lead to ownership transfer or salvage procedures.
When a vehicle is sold, the title must be transferred to the new owner. This process typically involves signing over the title to the buyer, who then registers it with the state. Any liens, such as a car loan, will also be noted on the title, indicating that a lender has a financial interest in the vehicle until the debt is repaid.