Insurers may apply for salvage titles without original papers

Starting January 1, 2027, an insurer may apply to a county treasurer for a salvage title without providing the vehicle’s original ownership papers. This applies when a vehicle’s ownership transfers to an insurer under a settlement related to damage to that vehicle. The insurer must show that ownership transferred, or will transfer, through a settlement over damage to the vehicle, and must pay the full settlement amount and the required fee. The insurer must provide an affidavit showing at least two attempts to get the papers from the previous owner and every recorded lienholder by certified mail or a service that provides proof of delivery. If the previous owner or a lienholder does not provide the papers, that failure counts as giving up all rights and claims to the vehicle. At least 30 days must pass from the settlement’s effective date before the insurer applies. This provision takes effect January 1, 2027.

Starting January 1, 2027, certain supporting papers may use a sworn or electronic signature instead of a notarized signature; state and county officials may rely on those papers under stated limits. The signature option applies to supporting papers filed with this insurer’s salvage-title application, including certain power-of-attorney, replacement-title, and odometer papers. The sworn statement may only identify the signer as the owner or confirm that an agent has authority to sign for the owner. Officials are protected from liability for relying on a supporting paper only if they took reasonable steps to check it and did not know its statement was wrong when they issued the title. These signature and reliance provisions take effect January 1, 2027.