When, as a result of an insurance settlement, a motor vehicle is declared to be a total loss, the insurance company, its authorized agent or the vehicle owner must apply for a salvage title within thirty (30) days from the settlement of the property damage claim. A salvage title is issued in the name of the insurance company, its authorized agent or vehicle owner who may dismantle, sell, rebuild or restore the salvaged vehicle.
The following items must be submitted before a salvage title can be issued:
- A completed Vehicle Application form (DPSMV1799) with the words “Salvage Title” written across the face of the application.
- The properly assigned title or manufacturer’s statement of origin with the words “Salvage Title” written across the face of title or statement of origin.
- A copy of the proof of loss from the insurance company.
- A UCC-1 financing statement or security agreement to record lien (if applicable).
- A notarized authorization from the insurance company naming the agent and including a complete description of the vehicle (model year, make, body style and complete vehicle identification number of the vehicle), if the vehicle is being titled in the name of the insurance company’s authorized agent’s name.
- Disclosure of salvage vehicle form.
- If a lien is to be recorded, you must submit a completed UCC-1 or Security Agreement showing a full description of the vehicle. When a UCC instrument is submitted to record a lien, include a $15.00 recordation fee. When any other lien instrument is submitted to record a lien, include a $10.00 recordation fee.
