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why would an insurance company want you to sign over power of attorney for a total loss

by Kristy
(Oakland Md)

Car lost traction on ice fishtailed sideways, was hit by a truck in passenger side on Dec 23, insurance co sent request for a power of attorney form to be signed and extra keys sent to them, they have not paid the claim yet, what does this mean


Hello Kristy,

The insurance company should have explained this to you, but I take it that they didn't.

A power of attorney will give the insurance company power to sell your car to them. (They will sell your car to a salvage yard, but since they are not the legal owners, they must get that power from you). Essentially, they will be buying the car from you as if the car was not in an accident (thereby giving you the actual cash value of the car).

The negotiation will be regarding that value. Although you might sign a power of attorney, you still hold the title and the cars is yours until you release the title to them, which you would only want to do until you agree to a proper settlement.

For more about total loss, please see:

Good Luck,

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Dec 12, 2011
Title signed over to insurance co with power of attorney.
by: Tanyia

I bought a 2009 dodge 2500 ram in Texas and u didn't get the title the day I purchased it when the title came later I loomed at it and see that it had been signed over to Geico with the person that bought it new giving them power of attorney. Since then I have found out that the truck has been wrecked. This was not disclosed to me at the time of purchase. It came with a clean car fax and advertised as a 1 owner. After seeing the title it was transfered to 4 other car dealers before I purchased it. Want to know when one is signed over to insurance company with power of attorney does this mean that it was totaled. If so how come it didnt show up on car fax and auto check. What rights do I have in this case.

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