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Delaware 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 Salvage Certificate?
  4. 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?
  5. What steps must an insurer take in Delaware to process an owner-retained vehicle?
  6. 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?

    1. Whenever any registered or unregistered motor vehicle, for which a title has been issued by the Department, is transferred as salvage as a result of a total loss insurance settlement, the insurance company or its authorized agent shall send the certificate of title of the vehicle to the Department within 30 days from the date of settlement. Upon receipt of the certificate of title and appropriate fee, the Department shall issue a salvage certificate. Such salvage certificate shall be deemed to meet all State proof of ownership.
    2. If the owner of any registered or unregistered motor vehicle for which a title has been issued by the Department receives a total loss insurance settlement for the vehicle and chooses to retain ownership of the vehicle as owner retained salvage, the insurance company shall either comply with the requirements in paragraph (a) of this section or require the owner of the vehicle to procure a salvage certificate from the Department prior to paying the total loss insurance settlement.

    [Delaware Statute Title 21 § 2512]

    Whenever any motor vehicle for which a title has been issued by the Department, whether such vehicle is registered or unregistered, is stolen, the owner or holder of the certificate of title shall, within 30 days of such theft, in addition to complying with all the other provisions of this chapter, send the certificate of title of the stolen vehicle to the Department or an authorized representative thereof. If the stolen vehicle is recovered after the title has been sent to the Department, the Department shall return the title at no cost to the owner or former holder of the certificate of title within 10 days after receiving a request therefor from such owner or former holder. (59 Del. Laws, c. 541, § 2.)

    [Delaware Statute Title 21, § 2513]

    As Required By Title 21, Delaware Code:

    Section 1. Responsibilities of vehicle owner when a vehicle is scrapped or dismantled beyond repair (Section 2512, Title 21) "Whenever any motor vehicle for which a title has been issued by the Delaware Motor Vehicle Division, whether such vehicle is registered or unregistered, is scrapped, permanently dismantled, damaged or destroyed beyond repair or otherwise made permanently unusable as a motor vehicle, the owner thereof within 30 days shall remove the registration plate and shall immediately give or send such plate and the certificate of title to the Motor Vehicle Division for cancellation.

    The Department shall upon receipt of the certificate of title, issue and send to the owner a non-negotiable receipt for the vehicle described on the certificate of title. Such non-negotiable receipt shall be deemed to meet all State proofs of ownership requirements." Procedures to be followed:

    1. If the owner scraps, permanently dismantles, damages or destroys a vehicle, and there is no settlement with an insurance company on the basis of total loss, the owner must comply with the requirements under Section 1 above.
    2. When an insurance company as a result of having paid a total loss acquires a certificate of title to a vehicle and obtains possession or control of the vehicle for cause other than theft, such company must comply with the requirements under Section 1 above.
    3. Within 30 days of a theft of a vehicle, if an insurance company has acquired a certificate of title to a vehicle and obtains possession of the vehicle in settlement of a theft loss claim, and upon recovery of the vehicle it is determined that the vehicle has been damaged to an extent that it would be considered a total loss under the provisions of comprehensive and collision insurance, such insurance company must comply with the requirements under Section 1 above.
    4. Whenever any owner sells or transfers a vehicle, whether registered or unregistered, which is considered to be scrapped, permanently dismantled, damaged or destroyed beyond repair or otherwise made permanently unusable as a vehicle, such owner shall comply with the requirements under Section 1 above.
    5. Whenever any vehicle, whether registered or unregistered, is acquired, either from in state or from another state, and the vehicle was purchased as salvage, junked or to be dismantled, the purchaser must comply with the requirements under Section 1 above. However, if the seller of the vehicle has complied with those requirements, and the new purchaser has in his possession a non-negotiable receipt for a salvage vehicle, no further requirements are necessary.

    [Code of Delaware Regulations 73 600 028] 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 by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement, and a release of any liens.

    CarBuyerUSA will submit these documents along with an Application for Title to the Motor Vehicle Division and the appropriate fee to the Motor Vehicle Division for processing.

    Thereafter, the Motor Vehicle Division 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.

    [Delaware Statute § Title 21 § 2512] back to top

  3. What documents must an insurer provide to CarBuyerUSA in order to sell a vehicle on a Salvage 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 by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement, and a release of any liens.

    CarBuyerUSA will submit these documents along with an Application for Title and the appropriate fee to the Motor Vehicle Division for processing.

    Thereafter, the Motor Vehicle Division shall issue a Salvage 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 Salvage Certificate to the purchaser.

    [Delaware Statute Title 21 § 2512; Code of Delaware Regulations 73 600 028] back to top

  4. 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 stolen, 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 by insured or endorsed by insurer accompanied by a power of attorney from insured to insurer), an odometer disclosure statement with last known mileage, a release of any liens, and a letter from insurance company stating vehicle has been stolen.

    After receipt of these documents, CarBuyerUSA will submit these documents to the Motor Vehicle Division for processing. The motor Vehicle Division shall keep the title. Thereafter, if the stolen vehicle is recovered after the title has been sent to the Motor Vehicle Division, they shall return the title at no cost to the owner or former holder of the certificate of title within 10 days after receiving a request thereof from the owner or former holder.

    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.

    [Delaware Statute Title 21 § 2513; Code of Delaware Regulations § 73 6000 28] Section 1(c)] back to top

  5. What steps must an insurer take in Delaware to process an owner-retained vehicle?

    1. Whenever any registered or unregistered motor vehicle, for which a title has been issued by the Department, is transferred as salvage as a result of a total loss insurance settlement, the insurance company or its authorized agent shall send the certificate of title of the vehicle to the Department within 30 days from the date of settlement. Upon receipt of the certificate of title and appropriate fee, the Department shall issue a salvage certificate. Such salvage certificate shall be deemed to meet all State proof of ownership.
    2. If the owner of any registered or unregistered motor vehicle for which a title has been issued by the Department receives a total loss insurance settlement for the vehicle and chooses to retain ownership of the vehicle as owner retained salvage, the insurance company shall either comply with the requirements in paragraph (a) of this section or require the owner of the vehicle to procure a salvage certificate from the Department prior to paying the total loss insurance settlement.

    [Delaware Statute Title 21 § 2512] back to top

  6. What legal duties are imposed upon a lienholder following satisfaction of the lien?

    No specific requirements. back to top

    DELAWARE DMV

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