Auto Insurance Claims: Signing blank forms to transfer vehicle to insurance, department of motor vehicles, bold face

Question
My car was totaled in a car accident of which I was not at fault.  The insurance company of the other party agreed to buy the car.  The adjuster told me over the phone that they would pay a certain amount for the car (~$2900).  He faxed me two forms to fill in: A power of attorney to transfer the vehicle, and a bill of sale.  The bill of sale states that I sold the car to them for $1.  He wants me to sign both forms and get the bill of sale notarized.  He insisted NOT to put any information about the vehicle (VIN, make, model, etc.) on the form.  He also wants me to send original title and keys with the forms.  I have nothing but his word over the phone that: They are going to pay; how much they are going to pay; that they do not transfer ownership of an entirely different vehicle.  Is this normal practice?  Should I just trust the adjuster, and send the insurance company signed blank forms?  I am tempted to at least put the VIN on the forms even though the instructions insist (in bold face print) NOT to fill any of this in.  Any advice?  Also, am I supposed to pay for the notary public and certified shipping that they request?

Many thanks,
      Jens

Answer
Hi Jens,

You should not sign or send any forms until you receive from them a written offer. You should call the adjuster an tell them you require a statement on there letterhead and signed by the adjuster exactly what the terms of the settlement are. The insurance company should pay any costs associated with sending them the forms (notory fees, shipping fees).

As far as singing the blank forms, this is ok once you have the signed settlement letter. They do this to be sure there are no mistakes on the form. In most states the department of motor vehicles will not accept a form with any errors or corrected errors.

I hope this helps
Richard Hixenbaugh