QuestionDear Jane,
Thank you for answering this question. We live in California. Our big rig was involved in an accident and the insurance company totaled both the tractor and the trailer. Since our insurance company paid out the policy limit on the tractor they are exempt from paying us the unused portion of license fees as the state of California mandates for totaled vehicles.
The tractor settlement was signed several months ago,(we released the vehicle to the insurance company), yet when I went in to the DMV to apply for a refund of license fees I was told I would need a copy of the salvage certificate from the insurance company to prove the vehicle was indeed totaled. The DMV then told me that nothing had changed with the title on the tractor. It was still registered in our name and there was no indication that anything had ever happened to the tractor. I immediately filed a transfer of liability so that we would not be held responsible for anything after the fact of transfering ownership to the insurance company several months ago. I then asked the insurance company for a copy of the salvage certificate and they sent a copy of the salvage certificate and it shows that it was issued out of the state of Illinois, dated 2 weeks prior.
I am very perplexed. Why would an insurance company not change the title in our State? Their only answer is that is how they obtain salvage certificates. I asked that they call or notify the California DMV as they are required by law for totaled vehicles and I have had no reply. Should I be concerned? Is this common practice for insurance companies? It is very clear on the tranfer of liability that the title will remain in my name until the buyer submits the proper paper work. This doesn't seem right that an insurance company would be so irresponsible.
Thank you,
Diane
Answer Hello Diane ...
First of all, I am not an expert on the salvage laws of CA or OH. However, from an insurance standpoint I'll try to point you in the right direction.
In my experience, when you sign off to the insurance company in a total loss situation that means you are actually transferring title to them. Unless the DMV is particularly slow in their processing, it does not make sense to me that the vehicles are still in your name.
As to whether the insurance company can salvage the vehicle in Ohio... That seems odd. Was the vehicle in Ohio at the time of loss? Another explanation might be that the salvage laws are "better" in Ohio than in CA. But the point is, in order for the insurance company to take any action it would seem apparent to me that they would first need to have the "right" to do that. That right would be ownership of the vehicle.
Call them back and ask them if there is a title anywhere. Is a salvage certificate in Ohio the same thing as a title? States differ on requirments. And, if everything is above board in Ohio, why is it that CA is still showing you as the owner?
The bottom line is your insurance company owes you a full explanation. Be proactive. Make certain than you are speaking to the appropriate adjuster. If he or she cannot answer your questions, ask to speak to a manager or supervisor. No need to be abrasive, obviously, but someone needs to explain this to you.
Hope this helps. Good luck!
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
