{"id":352989,"date":"2019-10-24T11:25:35","date_gmt":"2019-10-24T16:25:35","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/injury\/accident-injury-law\/total-loss-insurance-claims-power-of-attorney.html"},"modified":"2025-12-08T09:51:11","modified_gmt":"2025-12-08T14:51:11","slug":"total-loss-insurance-claims-power-of-attorney","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/injury\/accident-injury-law\/total-loss-insurance-claims-power-of-attorney.html","title":{"rendered":"Total Loss Insurance Claims: Do I Need to Sign a Power of Attorney?"},"content":{"rendered":"\n
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Total Loss Insurance Claims: Do I Need to Sign a Power of Attorney?<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last updated\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

While you are not legally required to sign a power of attorney<\/span> (POA<\/span>) for a total loss<\/span> insurance claim<\/span>, it is often necessary to complete the settlement process. A POA<\/span> allows the insurance company<\/span> to transfer your vehicle’s title and handle paperwork without requiring your signature at each step.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

After an accident, you may hear those terrible words from your insurance company<\/span>: Total loss<\/span>. In most cases, if the inspector declares your car a total loss<\/span>, the insurance company<\/span> will cut you a check for the car’s value, and that is the end of the process.<\/p>\n

At this stressful moment, the insurer may ask you to sign two documents, a Bill of Sale<\/span> and a Power of Attorney<\/span>. What is a power of attorney<\/span>, and why does your insurance company<\/span> need one just to complete your insurance claim<\/span>? Do you need to sign it? What happens if you don\u2019t?<\/p>\n

The short answer is yes, you do need to sign the power of attorney<\/span> to process your claim. If you\u2019re cautious, there\u2019s no reason to worry about any other legal problems.<\/p>\n

Why the Insurer Needs A Power of Attorney<\/span><\/h2>\n

A Power of Attorney<\/span> (POA<\/span>)<\/a> gives another person (your agent) the ability to act on your behalf. You can create a POA<\/span> for almost any situation. The most common use is a durable <\/span>power of attorney<\/span> used in living wills. In an insurance situation, the company needs a power of attorney<\/span> to complete your car <\/span>insurance<\/span> claim<\/span>.<\/p>\n

After an accident, the insurance policy<\/span> pays out the fair market value of the vehicle. That is the end of your ownership of the vehicle, but not the insurance company<\/span>\u2019s. To dispose of the car, they must have legal ownership of the vehicle and permission from the original owner to transfer title.<\/p>\n

The power of attorney<\/span> form<\/span> allows the insurer to transfer the title to a new owner, offer the wreck in an auction, or sell it to a salvage yard. Along with the bill of sale<\/span>, the POA<\/span> allows the insurer to remove the\u00a0totaled vehicle<\/span>\u00a0from your home or the auto shop and dispose of it without needing to obtain your written permission every time it changes hands.<\/p>\n

What a Power of Attorney<\/span> Lets the Insurance Company<\/span> Do<\/h3>\n

A limited <\/span>power of attorney<\/span> gives the insurance company<\/span> the ability to act for you to transfer ownership of your car. Normally, when you sell your car, you sign a document or a section of the title that surrenders your rights to the car, allowing the new owner to submit a request for a new title in their name.<\/p>\n

When your car is totaled, what happens next depends on whether you still owe the bank or lienholder or if you own the car free and clear. A POA<\/span> lets the insurer handle the details of disposing of your car, paying for any remaining loan balance, and other state paperwork, without having to involve you in the process. The POA<\/span> lets the insurance company<\/span>:<\/p>\n