Auto Insurance Claims: Settling a total loss claim -- bill of sale / power of attorney, comparative negligence, car description

Question
I was involved in a car accident in New Hampshire, where I live. I filed a claim with the other driver's insurance company and they offered me a settlement placing 80% of the fault on their driver and paying 80% of my damages (NH has comparative negligence).  (Even though I feel 0% at fault, I am in a tricky spot with no collision coverage and my vehicle undriveable for 30+ days by the time of this offer, so I'm accepting it to cut my losses.)  My car was declared a total loss and the insurance company valued it at $3200, which I accepted.  So they are paying me 80% of that, $2560. The insurance company has sent me documents to finalize the settlement, including a combined Bill of Sale / Power of Attorney.

The Bill of Sale part of the document reads:

"{Owner}

Hereby transfer(s) to {Insurance Company}, the following:

{Car Description}
VIN #: {VIN #}

in consideration of actual cash value of 3200.00"

Should the Bill of Sale say $3200 although I'm only getting 80% of that, $2560?


The Power of Attorney part reads:

"POWER OF ATTORNEY

I hereby make, constitute and appoint {Insurance Company}, and any of its agents, as my lawful Attorney-in-any matter pertaining to the transferring the motor vehicle described above, and for said purpose(s) to sign my name and do all things necessary to this appointment."

Is this a normal assignment to make in this situation?  Is there any hidden danger to signing this document that I might not understand from reading it?  Does it do anything other than facilitate transfer of the title / ownership of the vehicle to the insurance company, or expose me to any kind of financial or other liability?  It seems like signing the bill of sale and signing over the title would be sufficient to completely transfer ownership -- I've never heard of a power of attorney coming into play in a private sale.

Answer
Hi Peter,

All of this is normal. The $3200.00 figure is only an indication of the value of the vehicle not the amount of the settlement. As for the porer of attorney, in many cases there may be other documents that may need to be signed. It is also that someone will make a clerical error and need to start over. The power of attorney allows them to complete or re-do any forms needed in the title transfer proces. Insurance companies know that once you have your money you have little incentive to assist them with document signing in the future. The POA just eliminates any problems. Also the POA is specific to the transfer of the title and has no affect on any other aspect of your financial life.

I hope this helps
Richard Hixenbaugh