Services
Insurance
Loans
Repairs
Advice
About

Why does my insurance need me to sign a power of attorney for my totaled car?

My insurance said I have to sign the power of attorney before I'll be paid the value of the vehicle. Is this normal? Do I need a lawyer?

avatar
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
It’s completely normal for a
car insurance
company to ask for power of attorney! When your vehicle is totaled, your car insurance company gains ownership once the
actual cash value
is paid out.
Since the title is in your name, the power of attorney allows the insurance company to act on your behalf until the title transfer is complete. If a power of attorney isn’t signed, your insurance company would need your signature or permission to fill out any forms regarding the vehicle.
This would be incredibly time consuming and could prevent you from being paid as quickly as possible! Signing the power of attorney before you’re paid out doesn’t mean you won’t be paid.
If you are uncomfortable with the language in the power of attorney, you can have a lawyer review the document. They can answer any questions you may have.
Should you plan on getting a new car once you receive your payout, consider using
Jerry
to explore your car insurance options. While you may be happy with your current company, it never hurts to shop around.
The Jerry app
collects customized quotes from top insurance companies, like Nationwide and Allstate, to find you the
best rates
. The average Jerry user saves $879 a year!
View full answer 
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings