Understanding car titles

How to make changes to your car’s title and ownership

Your car title is like your car’s birth certificate. The information on a title is extremely important, so it all needs to be accurate. The title to your vehicle provides proof of ownership, and you might need it for a handful of situations, like selling your car. Discover how to get a copy of your title, when you might need it and how to make changes to your car title.

What’s on a vehicle title?

Several important pieces of info can be found on your car title.

• Your vehicle’s VIN. The vehicle identification number of your car remains consistent no matter who owns it, and can be used to track ownership, accidents and even repair and maintenance records.
• Make and model info. This includes the car’s model year, as well as any additional model option information for trim upgrades or special engine options.
• Title number. Used as an administrative tracking tool.
• Date title was issued. Extremely important — this is used to track when you bought or sold the vehicle.
• Odometer reading when issued. This is also very important, and it’s used as a way to verify when you bought or sold the vehicle in question. Verifying ownership becomes vital when a crime is committed with the vehicle, and this info can be helpful to the police if your vehicle is ever stolen.
• Weight class. Typically the higher a vehicle’s weight class is, the more it will cost for annual registration.
• Full name and address of owner or lender. This might be your home address, or it could be the name and address of the bank that loaned you money to buy the car if you’re still making payments.

How do I add or remove people from my car’s title?

Adding or removing people from your car title is similar to getting a new title. Typically, you’ll need to file for a new title, and then update the owner info fields.

Contact your local DMV to find the right form for updating owners on a vehicle.

When do I get my title after paying my vehicle off?

Typically, after you make your last payment to the bank or dealership, your car title will be sent to you in the mail. The title that is sent to you should reflect all the correct information, including having your name and address on it, since you’re the true owner of the vehicle now.

If you don’t receive it within a month, contact the bank that held your car loan to find out when you should receive it.

Do I need my car title to get car insurance?

For the most part, no. Most car insurance providers don’t require you to show the car title when you’re purchasing a policy. For drivers with a car loan or lease, you typically won’t even get the title with ownership rights until you pay off the loan.

You can also get insurance for a car you don’t own by getting a nonowners car insurance policy.

Do I need my car title to register my car?

No, just like with getting insurance, you don’t need the title to register your car if your name isn’t on the title.

If you have a loaned or leased car, you will need to show proof of ownership instead until you pay off your car and the title is in your name.

How do I transfer my car title registration when I move states?

You’ll need to update your license, car insurance and registration when you move states. Although you don’t have to update your car title when you move to a new address, it might make it easier if you’ll be selling your car in the future.

1. Find out how long you have to update registration in your state.
2. Search online to find the forms you’ll need to fill out for your state’s DMV.
3. Some states require state vehicle inspections to complete your registration.
4. Go to your local DMV to get your new license plate and driver’s license.
5. Keep your new car registration papers in your car and update any registration stickers on your license plate.

What happens to a title when I sell the car?

There are two additional sections to the vehicle title designated to reassigning ownership. The buyer and seller both fill out what’s called the Title Assignment section and enter the following info.

• Buyer and seller information, usually name and address
• Odometer reading
• Date

This title assignment can only be filled out once, and it can’t be corrected or amended. No scratching things out or erasing them. Because this form is so important, your focus and penmanship should be top-notch when you’re filling it out.

What kind of documentation do I need after selling my car?

After you sell your car, you must keep a copy of the reassigned title for at least 18 months. Why would you need to keep track of a vehicle you’ve gotten your money for and sent down the road?

Let’s say you sell a car to someone in a private sale. Both you and the buyer fill out the title transfer properly, and the new owner goes on his way. But six months later you receive a letter or phone call telling you your vehicle, the one you sold, has been impounded after some criminal activity. You’re told that you’re responsible for coming to get the car, as well as the damages from an accident the vehicle was involved in — you’re still listed as the owner.

How could this be possible?

If the person who bought the car never registered it in his name, you can still be held liable for what happened with the car after you sold it. This is where your proof of sale will come in handy with the title reassignment form — by presenting this information to the police and any other parties involved, you can prove that you aren’t responsible for the vehicle anymore.

What happens if I don’t sell my car directly?

If you trade in your car or sell it to a third party, you might never deal with the new buyer directly. It’s up to the dealership and new owner to transfer the title, but that’s no guarantee they will. It’s up to you to make sure the title changes hands correctly or you could still be responsible for a car you no longer own.

For example, let’s say you trade in your car with a dealership. The buyer doesn’t update the title in the required 30 days, and then the buyer gets a parking ticket. The car’s VIN is still registered to you, so you get the bill for the parking ticket in the mail. Now you’re stuck with a parking ticket that wasn’t your fault because the dealer and buyer didn’t follow the right process for transferring a title. Your next options in this scenario are to contact the dealership or DMV to remove yourself from the title.

After selling your car, confirm with the buyer or third party buyer that the title has properly transferred. Keep proof of sale and any other supporting documents in case you need to dispute issues that come up after the sale.

What if I lose my car title?

We get it, things get lost sometimes. Unfortunately it’s going to take a bit of paperwork and a fee, typically less than $20, to get a new title sent to you. The good news is that it can be done through standard channels with your DMV.

These forms are accurate at the time of writing, but you might want to check with your local DMV to make sure you have the most recent forms.

Frequently asked questions about car titles

• How much does it cost to replace a lost car title?

  That depends on your state, but most charge between $10 to $25 in administrative fees.

• Will I get in trouble if I'm caught driving without my car title?

  No. Unlike your driver’s license or proof of auto insurance, you don’t need to present your car title when a police officer pulls you over. The only time this might come into play is if the officer thinks the vehicle you’re driving is stolen — but even in that instance, there are other ways to make sure you’re following the law.
  You can stash your car title in the glove compartment if you prefer to keep all your vehicle’s documents together, but it’s just as safe — or safer — in a file cabinet at home. Just make sure you don’t lose it; car titles aren’t free to replace, and it could take several days or even a couple of weeks to process.

• Who should be on my title?

  If you own the vehicle free and clear, your name and information should be on the title. If you’re paying off a car loan to a bank or dealership, that bank or dealership’s name might be printed on the title. If that’s the case, you probably don’t have the title in your hands yet. When you pay off the vehicle, a title with your information on it will be mailed to you.

• What is title jumping?

  Title jumping is the illegal practice of buying and selling a vehicle without registering it in your name at any point. The title jumps from one owner to the next, so there’s no record of you owning the vehicle. Sellers with a jumped title or floated title are trying to avoid paying sales tax or the title transfer process. But sellers who try to jump a title can face penalties, fines and jail time, and buyers can face difficulties with the transfer process and future sale of the car. If you think you have a jumped title, contact the seller or DMV to find out your next steps.

• Can I get a title loan if I don't have my car title?

  No, you typically can’t get a car title loan unless you have the title and it’s in your name. You’ll need to get a copy of the title if you’ve lost it. Otherwise, you could apply for an auto equity loan if you have some equity in the car to use as collateral.