You Need a Car Title to Prove Ownership of Your Vehicle

A car owner needs to have legal proof that they are the true owner of their vehicle, and the most common document for this protection is a car title. Although other documents can be used to prove car ownership, the title is the most effective and often mandatory. If you purchase a vehicle, you will receive the title from your state’s Department of Motor Vehicles (DMV).

If you sell your car to another person, you will need to transfer the title to them. If you are buying a used vehicle from a private party, the seller will transfer the title to you. Aside from cars and trucks, titles are issued for several other types of motorized commodities, including motorcycles, mopeds, RV’s, boats, jet skis, and more.

3 Types of Car Titles

There are three different types of car titles: clean, salvaged, and rebuilt. Depending on the condition and history, your vehicle will have a title that fits one of the three. To determine which type of title you have for your car, simply read the front. It should have one of the three following labels:

▶ Clean – A clean car title is the best title to have because it means the vehicle has never experienced severe damage. All brand new cars come with clean titles (or at least they should!).

▶ Salvaged – When a car is so badly damaged or defective that the price to restore it would be more than its current value, it is issued a salvaged title. It is wise to understand the difference between salvaged and rebuilt car titles.

▶ Rebuilt – When a vehicle is so badly damaged that it is declared totaled (making it a candidate for a salvage title), but the car owner decides to rebuild it, it can be issued a rebuilt title so long as all qualifications are met. This is also called a reconstructed title. This lets all future buyers know that the vehicle was once severely damaged, but then restored.

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When it comes to owning a car, there are a lot of documents you will fill out, copy, and keep. But when it comes to driving your car, there are three important documents you should always have on hand, whether in the glove compartment, underneath the seat, or in middle console.

Continue reading to learn which 3 documents you should have in your car at all times and why.

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Top Vehicle Documents You Will Encounter as a Car Owner

Although they vary depending on what you get and where, the most common car documents encountered when purchasing a new or used vehicle include a Bill of Sale (also known as a Buyer’s Order), retail installment contract, finance agreement, service contract, odometer mileage disclosure form, lemon law rights statement, and of course, certificate of title.

But the list of documents you need to keep in your car if you plan to drive it is significantly smaller than this. In fact, you can be a legal, first-class driver with simply 2 documents in your vehicle. Now, if you really want to be on the safe side, add a third. What are these 3 important documents you must keep in your vehicle always? They are the car registration, proof of insurance, and owner’s manual.

Always Keep These Papers in Your Car:

❶ Car Registration

In order to have legal license plates on your vehicle, you will need to register your car with the state and renew the registration each year. After doing so, you will receive a registration card, which should be kept in your vehicle at all times. A car registration proves that your plates are valid and that you are the legal owner of the vehicle.

❷ Proof of Insurance

Both state and federal law or require that all vehicles must be covered by limited liability insurance in order to be legally driven on the road. It is important to keep your proof of insurance documents in your vehicle at all times, as you will need to provide insurance information if you are ever pulled over by law enforcement or involved in a traffic collision.

❸ Owner’s Manual

Although many do not realize it, the owner’s manual is one of the most important documents you can keep in your vehicle in case of an automotive or roadside emergency. When something goes wrong in your car, it is important that you have the proper literature to learn how to approach and resolve the issue safely. Furthermore, the owner’s manual is important if you want to sell your car for cash in Indianapolis.

Do Not Keep the Title in Your Car

Many drivers wrongly assume that they should have the certificate of title in their car, but this is very unsafe. Leave your car title at home or place it in a bank safety deposit box. Leaving your title in your vehicle can be risky in the case that your car is ever stolen. The thief can use your car title as proof of ownership to sell your car anywhere, leaving you without any recourse to get back. Additionally, a stolen car title can be used to steal a person’s identity.

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How to Find Out Which Kind of Title Your Car Has