Car ownership is an important part of the American psyche. Young men and women strive to find the freedom that comes when a car is totally and completely under their ownership. For many young Americans, their first car defines a large period of their adolescence, and they look back on it fondly even years later. For adults, the process of purchasing vehicles becomes second nature and in some ways devoid of excitement as cars are damaged or wear out and need to be replaced. Car insurance is purchased, maintenance is completed, and ownership of the car is assured. For some, however, an accident or other event can bring to light issues surrounding the car's ownership, and can lead to what are known as "title disputes." Knowing what to do should one arise, especially in relation to an insurance claim, is an important piece of information.
Property of any kind comes with a title. Some things, like a home or car, come with a written title – be it a bill of sale or deed to the home. Others, like personal property within a home, may simply have a receipt or be considered "owned" because of their location. A new car is typically the property of the driver that purchased it, but with a few notable caveats. Should the car be financed or leased, the purchaser or leaser of the car is typically known as the title holder. However, the financing or leasing company also have title to the car, as until it is paid off in the case of a financed vehicle, or during its entire life as a leased vehicle, it belongs to the company. This means that should an accident occur, the company will have a say in how the repairs of a car are conducted. In the case of a financed vehicle, most companies will simply allow owners to deal with the car themselves, but leased vehicles may require certain repairs based on the company's policies. As well, it is important to understand that should a vehicle be considered a write-off, an insurance company will require title of the car to be signed over to them before any money will be paid, meaning the owner no longer has any claim to it.
Should any title disputes arise, documentation is key. Papers showing transfer of title, or the terms of the agreement with an insurance or financing company are essential in determining who has the power to decide the fate of a vehicle, and who bears the cost. In some cases, independent arbitration may be necessary to settle a car insurance title dispute, and being prepared for such an event is made far easier with the right documents.
