Why is an insurance company listed as a title holder?

"I am purchasing a used vehicle from a dealership. When I used Carfax the title was held by an insurance company. Why would an insurance company own the vehicle?"

Answer
“A car insurance can hold a title to a vehicle if it was marked as a total loss. When an insurance company pays a policyholder actual cash value for a vehicle, it becomes their property.
They may have decided to repair the vehicle and sell it to gain back some of the money spent. The vehicle now most likely has a salvage title. Since the information is coming from Carfax, you’ll want to reach out to the dealership directly.
Carfax may not have the complete history of the vehicle but they will be able to provide you with any additional information.”
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Emily Maracle
Answered on Jul 27, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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