Virginia State Title Processing Procedures

1. What form of title must an insurer obtain in connection with the sale of a vehicle that has been acquired through the settlement of a claim?
2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title?
3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title indicating “Salvage Vehicle”?
4. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title indicating “Salvage Vehicle” and “Branded if Rebuilt”?
5. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on Nonrepairable Certificate?
6. What documents must an insurer provide to CarBuyerUSA in order to sell a recovered theft vehicle recovered substantially intact with no substantial damage, where title is still in the name of the insured?
7. What steps must an insurer take in Virginia to process an owner-retained vehicle?
8. What legal duties are imposed upon a lienholder following satisfaction of the lien?

1. What form of title must an insurer obtain in connection with the sale of a vehicle that has been acquired through the settlement of a claim?
   
   Excerpts from the Code of Virginia relating to titling documents required for vehicles acquired by insurers as a result of the claims process as set forth below:
   
   Code of Virginia § 46.2-1603:
   
   
   (B) Every insurance company or its authorized agent shall apply to the Department and obtain a salvage certificate [emphasis added] for each late model vehicle acquired by the insurance company as the result of the claims process if such vehicle is titled in the Commonwealth and is a salvage vehicle.
   
   (C) Every insurance company or its authorized agent shall apply to the Department and obtain a certificate of title [emphasis added] for each stolen vehicle acquired by the insurance company as the result of the claims process if such vehicle is titled in the Commonwealth and has not been recovered at the time of application to the Department. For each recovered stolen vehicle, acquired as a result of the claims process, whose estimated cost of repair exceeds seventy-five percent of its actual cash value, the insurance company or its authorized agent shall apply to the Department and obtain a salvage certificate. The application shall be accompanied by the vehicle's title certificate and shall contain a description of the damage to the salvage vehicle and an itemized estimate of the cost of repairs up to the point where a nonrepairable certificate would be issued. Application for the certificate of title shall be made within fifteen days after payment has been made to the owner, lienholder, or both. Application for the salvage certificate shall be made within fifteen days after the stolen vehicle is recovered.
   
   
   Code of Virginia § 46.2-1603.2:
   
   
   (B) Every insurance company or its authorized agent shall apply to the Department and obtain a nonrepairable certificate [emphasis added] for each vehicle acquired by the insurance company as a result of the claims process if such vehicle is titled in the Commonwealth and is (i) a late model nonrepairable vehicle or (ii) a stolen vehicle that has been recovered and determined to be a nonrepairable vehicle. The application shall be accompanied by the vehicle's title certificate or salvage certificate and shall contain a description of the damage to the nonrepairable vehicle. Application for the nonrepairable certificate shall be made within fifteen days after payment has been made to the owner, lienholder, or both.
   
   
   Code of Virginia § 46.2-1602.1:
   
   
   Every insurance company which acquires, as a result of the claims process, any late model vehicle titled in the Commonwealth or any recovered stolen vehicle whose estimated cost of repair exceeds seventy-five percent of its actual cash value shall apply to and obtain from the Department either (i) a salvage certificate or certificate of title as provided in § 46.2-1603 or (ii) a nonrepairable certificate as provided in § 46.2-1603.2 for each such vehicle. An insurance company may apply to and obtain from the Department either a salvage certificate as provided in § 46.2-1603 or a nonrepairable certificate as provided in § 46.2-1603.2 for any other vehicle which is determined to be either a salvage vehicle or a nonrepairable vehicle.
   
   
   Code of Virginia § 46.2-1600 provides the following definitions applicable to the above legal citations:
   
   
   "Late model vehicle" means the current-year model of a vehicle and the six preceding model years, or any vehicle whose actual cash value is determined to have been at least $7,500 prior to being damaged.
   
   "Nonrepairable certificate" means a document of ownership issued by the Department for any nonrepairable vehicle upon surrender or cancellation of the vehicle's title and registration or salvage certificate.
   
   "Nonrepairable vehicle" means (i) any late model vehicle that has been damaged and whose estimated cost of repair exceeds ninety percent of its actual cash value prior to damage, or (ii) any vehicle which has been determined to be nonrepairable by its insurer or owner, and for which a nonrepairable certificate has been issued or applied for, or (iii) any other vehicle which has been damaged, is inoperable, and has no value except for use as parts and scrap metal "Salvage certificate" means a document of ownership issued by the Department for any salvage vehicle upon surrender or cancellation of the vehicle's title and registration.
   
   "Salvage vehicle" means (i) any late model vehicle which has been (a) acquired by an insurance company as a part of the claims process other than a stolen vehicle or (b) damaged as a result of collision, fire, flood, accident, trespass, or any other occurrence to such an extent that its estimated cost of repair, excluding charges for towing, storage, and temporary replacement/rental vehicle or payment for diminished value compensation, would exceed its actual cash value less its current salvage value; (ii) any recovered stolen vehicle acquired by an insurance company as a part of the claims process, whose estimated cost of repair exceeds seventy-five percent of its actual cash value; or (iii) any other vehicle which is determined to be a salvage vehicle by its owner or an insurance company by applying for a salvage certificate for the vehicle, provided that such vehicle is not a nonrepairable vehicle. back to top
   
   
2. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title?
   
The insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, an ACV, and itemized repair estimate.

CarBuyerUSA will submit these documents along with the Certificate of Title with the Application for New Certificate of Title and Registration filled out, and the appropriate fee to the Department of Motor Vehicles for processing. Thereafter, Department of Motor Vehicles shall issue a Certificate of Title in the name of the insurer.

CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Title to the purchaser. [See Virginia Code, §§ 46.2-621, 46.2-1600] back to top


3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title indicating “Salvage Vehicle”?
   
   The insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, an ACV, and itemized repair estimate.
   
   CarBuyerUSA will submit these documents along with an Application for Salvage Certificate and the appropriate fee to the Department of Motor Vehicles for processing.
   
   Thereafter, the Department of Motor Vehicles shall issue a Certificate of Title indicating “Salvage Vehicle” with the appropriate branding, if necessary, in the name of the insurer.
   
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Title indicating “Salvage Vehicle” to the purchaser. [See Virginia Code, §§ 46.2-1600, 46.2-1603] back to top
   
   
4. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Certificate of Title indicating “Salvage Vehicle” and “Branded if Rebuilt”?
   
   The insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, an ACV, and itemized repair estimate.
   
   CarBuyerUSA will submit these documents along with an Application for Salvage Certificate and the appropriate fee to the Department of Motor Vehicles for processing.
   
   Thereafter, the Department of Motor Vehicles shall issue a Certificate of Title indicating “Salvage Vehicle” and “Branded if Rebuilt” with the appropriate branding, if necessary, in the name of the insurer.
   
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Title indicating “Salvage Vehicle” and “Branded if Rebuilt” to the purchaser. [See Virginia Code, §§ 46.2-1600, 46.2-1603] back to top
   
   
5. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on Nonrepairable Certificate?
   
   The insurer shall provide CarBuyerUSA with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, and an ACV.
   
   CarBuyerUSA will submit these documents along with an Application for Nonrepairable Certificate and the appropriate fee to the Department of Motor Vehicles for processing.
   
   Thereafter, the Department of Motor Vehicles shall issue a Nonrepairable Certificate in the name of the insurer.
   
   CarBuyerUSA, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Nonrepairable Certificate to the purchaser. [See Virginia Code, § § 46.2-1600, 46.2-1603.2] back to top
   
6. What documents must an insurer provide to CarBuyerUSA in order to sell a recovered theft vehicle recovered substantially intact with no substantial damage, where title is still in the name of the insured?
   
   When a vehicle has been recovered, the insurer shall provide CarBuyerUSA with a Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, a release of any liens, an ACV and a repair estimate or a letter from insurance company stating there is no damage.
   
   After receipt of these documents, CarBuyerUSA will submit these documents along with an Application for Certification of Recovered Stolen Vehicle (LSD03) and the appropriate fee to the Department of Motor Vehicles for processing in order to obtain the appropriate title depending upon the year of the vehicle and the damage to the vehicle.
   
   CarBuyerUSA, acting upon a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s title to the purchaser. [See Virginia Code, § § 46.2-1600, 46.2-1602.1, 46.2-1603, 46.2-1603.2] back to top
   
   
7. What steps must an insurer take in Virginia to process an ownerretained vehicle?
   
   Pursuant to Virginia Code § 46.2-1603:
   
   
   A. The owner of any vehicle titled in the Commonwealth may declare such vehicle to be a salvage vehicle and apply to the Department and obtain a salvage certificate for that vehicle.
   B. Intentionally omitted
   C. Intentionally omitted
   D. Every insurance company or its authorized agent shall notify the Department of each late model vehicle titled in the Commonwealth on which a claim for damage to the vehicle has been paid by the insurance company if (i) the estimated cost of repair exceeds seventy-five percent of actual cash value of the vehicle and (ii) the vehicle is to be retained by its owner. No such notification shall be required for a vehicle when a supplemental claim has been paid for the cost of repairs to the engine, transmission, or drive axle assembly if such components are replaced by components of like kind and quality.
   E. Intentionally omitted
   F. The fee for issuance of the salvage certificate shall be ten dollars. If a salvage vehicle is sold after a salvage certificate has been issued, the owner of the salvage vehicle shall make proper assignment to the purchaser.
   G. The Department, upon receipt of an application for a salvage certificate for a vehicle titled in the Commonwealth, or upon receipt of notification from an insurance company or its authorized agent as provided in subsection D of this section, shall cause the title of such vehicle to be cancelled and the appropriate certificate issued to the vehicle's owner. back to top
   
   
8. What legal duties are imposed upon a lienholder following satisfaction of the lien?
   
   Pursuant to Virginia Code, § 46.2-643:
   
   
   It shall constitute a Class 3 misdemeanor for a secured party who holds a certificate of title as provided in this title to refuse or fail to mark satisfied and surrender it to the person legally entitled thereto within ten days after his security interest is satisfied. back to top
   
   
   VIRGINIA DMV