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?
Pursuant to Colorado Revised Statutes § 42-6-102(13):
“Salvage vehicle” means any vehicle which is damaged by
collision, fire, flood, accident, trespass, or other occurrence,
excluding hail damage, to the extent that the cost of repairing
the vehicle for legal operation on the highways exceeds the
vehicle’s retail fair market value immediately prior to such
damage, as determined by the person who owns the vehicle at
the time of such occurrence or by the insurer or other person
acting on behalf of such owner.
In assessing whether a vehicle is a “salvage vehicle”
under this section, the retail fair market value shall be
determined by reference to sources generally accepted within
the insurance industry including price guide books, dealer
quotations, computerized valuation services, newspaper
advertisements, and certified appraisals, taking into account
the condition of the vehicle prior to the damage.
This section shall not apply to a vehicle whose model year
of manufacture is eight years or older at the time of damage.
Pursuant to Colorado Revised Statutes § 42-6-136:
The owner of any motor vehicle for which a Colorado
certificate of title has been issued, upon the destruction or
dismantling of said motor vehicle, upon its being changed in
such manner that it is no longer a motor vehicle, or upon its
being sold or otherwise disposed of as salvage, shall
surrender the certificate of title thereto to the director to be
cancelled; and, upon said owner's procuring the consent
thereto of the holders of any mortgages noted on the
certificate of title and shown to be unreleased in the office of
the director, such certificate shall thereupon be cancelled.
Any person who violates any of the provisions of this section
commits a class 1 petty offense and, upon conviction thereof,
shall be punished as provided in section 18-1- 107, C.R.S.
Upon the sale or transfer of any motor vehicle for which a
current Colorado certificate of title has been issued, which
motor vehicle has become a salvage vehicle as defined in
section 42-6-102(13), the purchaser or transferee shall make
application for a salvage certificate of title. The owner of any
such motor vehicle may make application for a salvage
certificate of title before the sale or transfer of such vehicle.
Any owner making application for a salvage certificate of title
shall provide the director evidence of ownership which
satisfies the director of the right of the applicant to have a
salvage certificate of title issued to the owner.
[intentionally omitted]
Pursuant to Colorado Dept. of Revenue, Titles And Registration
Regulations – Dealer Title § 7:
Vehicles held by dealers or wholesalers to be junked or parted
out must be marked "JUNK" on the face of the title. The
"JUNK" notation is to be dated and identified as to who
declared the vehicle junk. The title must be submitted to the
Title Section, Motor Vehicle Division, 1881 Pierce Street,
Lakewood, Colorado 80014. A photocopy of the title marked
"JUNK", either in the name of the dealership or wholesaler or
assigned to the dealership or wholesaler, shall be kept with
the vehicle to serve as proof of ownership. The purchaser of
any component parts which are identified with a vehicle
identification number shall be given a photocopy of the
"JUNK" title with the sales receipt.back to top
What documents must an insurer provide to Copart in order to sell a
vehicle on a Certificate of Title?
The insurer shall provide Copart with a Certificate of Title or a comparable
ownership document issued by another state or jurisdiction (either endorsed
over to the insurer or accompanied by a power of attorney), an odometer
disclosure statement, and a release of any liens. [Note: If there is a
lienholder showing on the front of a Colorado or Wyoming title, the
lienholder must release the lien by signing the lien release shown on the
front of the title. In this situation, MVD will not accept a lien release via a
separate notarized certification of lien satisfaction].
Copart will submit these documents along with an Application for Title
and/or Registration (Form DR 2411) and the appropriate fee to the
Department of Revenue – Motor Vehicle Division for processing.
Thereafter, the Department of Revenue – Motor Vehicle Division shall
issue a Certificate of Title in the name of the insurer.
Copart, 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.back to top
What documents must an insurer provide to Copart in order to sell a
vehicle on a Salvage Certificate of Title?
The insurer shall provide Copart with a Certificate of Title or a comparable
ownership document issued by another state or jurisdiction (either endorsed
over to the insurer or accompanied by a power of attorney), an odometer
disclosure statement, and a release of any liens. [Note: If there is a
lienholder showing on the front of a Colorado or Wyoming title, the
lienholder must release the lien by signing the lien release shown on the
front of the title. In this situation, MVD will not acknowledge a lien release
that is provided on a separate notarized certification of lien satisfaction.]
Copart will submit these documents along with a DR 2410 Application for
Salvage Title and the appropriate fee to the Department of Revenue –
Motor Vehicle Division for processing.
Thereafter, the Department of Revenue – Motor Vehicle Division shall
issue a Salvage Certificate of Title in the name of the insurer.
Copart, acting under a power of attorney for the insurer, will then sell the
vehicle at auction and reassign the insurer’s Salvage Certificate of Title to
the purchaser. [See Colorado Revised Statutes §§ 42-6-102(13) and 42-6-
136] back to top
What documents must an insurer provide to Copart in order to sell a
vehicle on a Parts-Only Bill of Sale?
The insurer shall provide Copart with a Certificate of Title or a comparable
ownership document issued by another state or jurisdiction (either endorsed
over to the insurer or accompanied by a power of attorney), a release of any
liens, and a letter of authorization to sell the vehicle on a Parts-Only Bill of
Sale.
Copart will mark the face of the Certificate of Title with “JUNK”, make a
copy, and forward the original title marked “JUNK” to Motor Vehicle
Division.
Copart, acting under a power of attorney for the insurer, will then sell the
vehicle at auction and provide a Parts-Only Bill of Sale to the purchaser,
along with a copy of the certificate of title stamped JUNK. [See Colorado
Department of Revenue Titles and Registration Regulations – Dealer Title
§ 7] back to top
What documents must an insurer provide to Copart 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 recovered, the insurer shall provide Copart with a
Title or a comparable ownership document issued by another state or
jurisdiction (either endorsed over to the insurer or accompanied by a power
of attorney, an odometer disclosure statement, and a release of any liens.
[Note: If there is a lienholder showing on the front of a Colorado or
Wyoming title, the lienholder must release the lien by signing the lien
release shown on the front of the title. In this situation, MVD will not
acknowledge a lien release that is provided on a separate notarized
certification of lien satisfaction.]
After receipt of these documents, Copart will apply to the Department of
Revenue – Motor Vehicle Division for the appropriate title in the insurer’s
name depending upon the year of the vehicle and the damage to the vehicle.
Copart, acting upon a power of attorney for the insurer, will then sell the
vehicle at auction and reassign the insurer’s Certificate of Title or Salvage
Certificate of Title to the purchaser. back to top
What steps must an insurer take in Colorado to process an ownerretained vehicle?
There are no specific requirements.
What legal duties are imposed upon a lienholder following satisfaction
of the lien?
Following satisfaction of lien, Lienholder shall execute and file a notice of
discharge (on a form prescribed by the Department of Revenue). Lienholder shall
also endorse the release on the Certificate of Title and return the Certificate of
Title to the legal owner or to the next subsequent lienholder. Any person who
violates any of the provisions of this section is guilty of a misdemeanor and, upon
conviction thereof, shall be punished by a fine of not less than one hundred dollars
nor more than five hundred dollars, or by imprisonment in the county jail for not
less than ten days nor more than six months, or by both such fine and
imprisonment. [See Colorado Revised Statutes §§ 42-6-125; 42-6-142] back to top
Your vehicle is a unique combination that requires human review. Please call one of our live agents or fill out our speed contact form below and we will get back with you immediately with a no obligation damaged vehicle price quote and a diminished value figure.
Team DamageMax
Fair market value prior to accident $
Sell my damaged vehicle
Check for my vehicle AS-IS
This represents a cash offer for the vehicle as described by the seller.
$
Net Repair Check
Proceeds for repairs that can be used for purchasing a replacement vehicle.