Wednesday, June 15, 2022

Do You Need Insurance To Change Car Title In Texas

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Can You Insure Two Cars In Different States

How to do a private party title transfer in Texas. Sell your car with the right paperwork!

It is possible to insure two cars in different states, especially if one is a commercial vehicle. However, this is very rare and you might need to purchase two separate policies.

Are you ready to buy auto insurance in your new state? Enter your new ZIP code into our free online quote comparison tool below to see affordable auto insurance rates.

Inheritance Without A Will

If there’s no will, the heir or heirs of the deceased can transfer the title by completing Form VTR-262, “Affidavit of Heirship for a Motor Vehicle,” and Form 130-U, “Application for Texas Title and/or Registration” . List the vehicle identification number, year, make, model and license plate number in the top portion of the forms. Provide the deceased owner’s information and the names and addresses of the heirs. Some vehicles require an “Odometer Disclosure Statement” follow the instructions listed on the second page of VTR-262. All heirs must sign VTR-262 in the presence of a notary public indicating that they are the only known heirs of the deceased.

If Youre Buying A Vehicle:

The State of Texas recommends that both buyer and seller visit the DMV together to streamline the title transfer process, but its not a requirement. If youre purchasing a vehicle from a private seller, you will need to do the following:

  • Make sure the seller has filled out all fields on the back of the title , signed it over to you, and that it is notarized.
  • Complete the form for Application for Texas Title and/or Registration . Verify that the form includes the price of the vehicle.
  • Request a copy of the Vehicle Inspection Report , which is proof of inspection and is required if a record of current inspection is not in the state database.
  • Get insurance on the vehicle and be able to provide proof of insurance.
  • Ask for a lien release if the seller does not own the vehicle outright.
  • Get power of attorney if you are purchasing the vehicle for another person.
  • Write down the name and address of the seller, the date of sale, and vehicle information, including the VIN.
  • Bring all of this information with you to the DMV. If you are unable to provide proof of liability insurance at this time, you may apply for title only. Be prepared to pay a transfer fee, as well as county and local fees. You may also be required to pay a new inspection fee. Failure to transfer a title within 30 days of the date of sale can result in delinquent transfer penalties.

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    Fees To Register A Custom Or Antique Vehicle In Texas

    Arranging payment for the allotted custom or Texas antique license plate fees is necessary so as to complete the registration procedure timely and properly.

    Prices for registering custom car projects or antique and classic cars may vary based on several factors, including the applicants county of residence, the type of vehicle, the vehicles characteristics and more.

    For example, motorists obtaining antique car tags will need to pay a $50 fee or $40 for vehicles manufactured before 1921. In addition to the base price for a custom or vintage vehicle registration in Texas, drivers may also need to provide payment for additional requirements, such as passing a safety inspection.

    Contact a nearby TX DMV office and verify the exact registration cost pertaining to your case.

    Note: Once your registration expires, you will need to initiate a renewal procedure.

    Identifying The Legal Heirs

    Texas Title Processing Information

    If the deceased left a will, then the will should identify the person who inherits the car. If there is no will, then the heirs are determined according to the state rules of intestacy. Generally, a surviving spouse can apply for a transfer of the car title unless the deceased has children with a different parent, in which case all surviving children must also make the application. If there is no surviving spouse, all surviving children must sign the transfer forms. If the deceased left neither a spouse nor children, then it’s a good idea to hire an attorney to determine who are the heirs-at-law.

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    Can You Put A Vehicle In Your Name Without Insurance

    Putting a car in your name without insurance isnt likely when pursuing a car title.

    I can transfer a car title without car insurance, why cant I put my name on it? you may be asking. Car ownership is private, but the DMV needs a record of ownership. DMV title transfers arent possible if the driver doesnt meet the state minimum requirements for auto insurance.

    Dealerships wont let you drive off the lot unless you have auto insurance in some states. Its much safer for drivers to get auto insurance if they want to drive without any legal issues.

    What about other states? Do you need insurance to change or transfer a car title in California, Florida, Michigan, Pennsylvania, and Texas? The following table has all the answers.

    Examples of Proof-of-Insurance Requirements for Title Transfers


    Three out of the five states weve listed above require you to show proof of insurance. It appears proof of insurance falls more so on the buyer than the seller, but its partly true for some states. States that require proof of insurance want to know that no one is operating with negligence.

    Notify The Insurance Company

    Even though it might not be entirely necessary to notify the DMV it is always a good idea to let your insurance company know of the changes that you are making to the vehicle. This is important because your insurance rates are based on variables that insurance companies are aware of. Insurance companies have a pretty good idea of what it costs to paint a vehicle and that is the amount of money they are going to award you in the event of an accident.What if you spend thousands of dollars on a new paint job, dont notify the insurance company, and get a massive scratch while sitting in a parking lot? The insurance company is only going to be willing to pay what it would costs to repair the factory paint because they simply werent aware of the modifications that you made.Contacting the insurance company ahead of time and letting them know that you are adding new expensive paint to the vehicle might raise the overall costs of your insurance, but you will also have complete coverage in the event that there is an accident. Do you have to notify the DMV when you paint your car? No, and you dont necessarily have to notify the insurance company either, but as you can see, it is always a good idea.

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    What State Should College Students Insure Their Car In

    Many college students are on a family auto insurance policy. Can I be on my parents auto insurance if I live in a different state as a full-time college student? Will you be required to purchase a different auto insurance plan to cover you while you attend school out of state?

    Fortunately, no. If you are a college student, your school address is considered to be temporary, not permanent.

    This means you can usually keep your current auto insurance policy because your permanent address did not technically change.

    If you are not going to bring a vehicle with you, your parents can remove you from the policy to save some money.

    How To Sign A Car Title Over To An Insurance Company

    How to change your address for your car title – Texas VTR-146 Change of Address Texas Motor Vehicle

    If youre not at-fault, you will have to file a claim with the other partys auto insurance company to cover damages.

    Total loss damage indicates a claim must replace the value of your vehicle.

    If you have the title to your vehicle, you sign it over to the auto insurance company.

    Every auto insurance company works differently, but you typically sign over your title by talking to an agent in person, sending it electronically, or sending it by mail. Some adjusters may also be able to come to your home to collect your title.

    Some drivers are underinsured, and the cost of damage isnt covered because the other driver has insufficient coverage limits on their auto insurance policy. Therefore, your auto insurance company will cover the difference through underinsured motorist coverage.

    You can supplement your underinsured motorist insurance will collision to ensure that a total loss accident is covered.

    Once you can guarantee that your total loss vehicle can be recovered in a claim, sign over your vehicles title to the insurance company. You may have to get an application from your local DMV website or location.

    The application should contain the signature of the seller, lienholders, and buyer. There may be a transfer fee, depending on the state.

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    Custom Car Registration In Texas

    A Texas custom car registration, as well as antique license plates, are necessary for owners of these types of vehicles to stay in accordance with the applicable motor vehicle laws. The TX Department of Motor Vehicles issues custom car registration documents, as well as antique or classic license plates to drivers who meet the imposed registration requirements and submit the proper documentation to the agency.

    Under state laws, motorists requesting a TX registration for custom cars or antique rides must first check whether their vehicle classifies as an antique, classic, assembled, reconstructed or replica car, among other types of motor vehicles, and submit the appropriate documentation for title and registration. Learn more about custom and antique license plates rules in Texas in the following sections.

    How To Buy A Used Vehicle

    When you buy a used vehicle in Texas, the state does not provide any warranty or consumer protection on the reliability of that vehicle. It is up to you to make sure you are doing everything you can protect yourself whether you are buying from a dealer or individual.

    For passenger cars and pickup trucks, dealers are required by law to post a Buyers Guide on the vehicle, which will tell you whether it is being sold as is or with a warranty.

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    Do I Need Proof Of Insurance To Transfer A Title

    If you are in the process of buying a new vehicle, this is probably an exciting time for you. At the same time, lots of paperwork is involved in buying a car and transferring the title into your own name. If this is your first vehicle purchase or if you are residing in a new state, this process can feel overwhelming. Thankfully, just a bit of research and proper documentation can set you up for success and have you enjoying your new car in no time.

    Final Thoughts On Transferring Titles

    Sell your car in Texas

    If you transfer a car title, you are basically indicating that there has been a change in ownership of the vehicle. This is different from officially registering a car or truck with the state.

    When you buy a new car from the dealer, the title transfer process is very easy and typically involves the dealership handling most of the forms.

    Auto insurance requirements only come into play at the stage of registering a vehicle with the state.

    Although car insurance is not necessarily a legal requirement to take possession of a car, car dealerships or lenders may require that you have adequate coverage before they agree to transfer the title of a new or used car to your name.

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    Texas Title Fees And Taxes

    Title transfers and its associated fees and taxes are expected.

    Fees can include:

    • Title application: $28 $33
    • Inspection fee: Up to $30.75
    • Local/county fees: Up to $31.50
    • Insurance verification: $1
    • Processing and handling fee: $1

    You will also pay a 6.25% Texas sales tax when purchasing a car in a private sale.

    Are You New To Texas

    If so, follow these steps to become a registered Texan:If you are a new resident you may only register in person.1. Have your vehicle inspected. Simply take your vehicle to a certified Texas Department of Public Safety inspection station. Take your auto insurance card.In Texas, you must show you have insurance coverage for a minimum of $30,000 per injured person, up to a total of $60,000 for everyone injured in an accident, and $25,000 for property damage. If you do not have Texas insurance yet you may visit, call or email us to get a free quote and we are able to bind coverage for you immediately so you can take your new insurance card with you to get your vehicle inspected. 2. Next, it’s time to get your vehicle registration sticker and license plates. To do this, you must contact a local representative. You will need to bring that insurance card, the inspection papers and out of state certificate from inspection shop, and proof you own the vehicle, such as the registration or title from your previous state. You can also show a current foreign/military ownership document or foreign evidence of ownership.

    For more information about vehicle registration, call us at 832-619-1330 or send us an e-mail to

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    Information And Documents Necessary To Transfer A Title In Texas

    When transferring a car title in Texas, motorists need to prepare certain documents that hold the important information needed for the procedure. To perform a transfer of car title, individuals may have to provide the following documents:

    • Texas Motor Vehicle Transfer Notification
    • Certificate of title assigned to the buyer
    • Application for Texas Title and/or Registration
    • Release of lien, if applicable
    • Power of attorney, if needed
    • Proof of liability car insurance
    • Vehicle Inspection Report , if a record of current inspection is not available

    In addition to the above-listed documents needed for a car title transfer in Texas, motorists may be required to provide a bill of sale and other documents, which may vary based on their specific situation.

    Therefore, in order to discover how to fill out transfer of title in Texas and to learn more details about the required documentation, individuals are encouraged to contact the TX DMV beforehand and find out how to complete a title transfer.

    Verified Accurate As Of Oct 02 2018

    Texas Title Transfer SELLER Instructions

    A title transfer is required in Texas to prove ownership whenever its sold or bought.

    The title transfer process is automatic when buying from dealerships.

    Private sales require extra steps which we will cover in this post. Then, share what youll need to bring to your local TX DMV to make the car your own.

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    Buying From An Individual

    If buying from an individual, have the seller accompany you to the county tax office to avoid unwanted surprises. Before submitting the title application, a tax office representative can tell you if the title being signed over to you is correct and if it has any salvage or legal issues. You can also use Title Check to see if the title of the vehicle you are thinking about buying has any issues impacting its value.

    In addition to the title, ask the seller to provide you with:

    • The signed vehicle title

    Keep a written record that includes the name and address of the seller, date of sale and vehicle information, including the VIN. Failure to title a vehicle within 30 days from the date of sale may result in delinquent transfer penalties.

    You must provide proof of liability insurance when you title and register your vehicle. If you do not provide proof of insurance, you may apply for title only.

    The Vehicle Inspection Report , which is proof of inspection, must be provided if a record of current inspection is not in the state database. Ask the seller for a copy of the latest VIR if it is available.

    Apply For A New License

    Finally, you’ll need to apply for a new driver’s license. Ideally, this will be done at the same timeand place as your vehicle registration.

    However, you may need to travel to a new location to fill out this application and have your picture taken. Ask your attendant at the registration office where you can apply for a new driver’s license.

    As with your registration process, you’ll need to:

    • Fill out a license application form.
    • Pay an application fee in order to obtain a new state license.

    Once this process is complete, you’ll be a fully registered driverin your new state.

    Editorial Note: The content of this article is based on the authorâs opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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    Everything Will Need To Be Removed

    If you want to completely change the color of your vehicle in a professional manner, you will have to remove everything. This includes the engine, the seats, the dash, the console, and even many of the trim pieces will need to be removed. This is just one of the reasons that professional shops charge more money.Of course, you can paint the entire vehicle without removing these components, but upon close inspection, the alteration in the paint will be highly noticeable.

    Contact Your Insurance Company To Learn If Changes Are Needed

    Sell My Car Texas â Title Transfer â Family Car Buyers

    If your student still plans to drive and keep a car on campus, its important to contact your automobile insurance carrier and update them about this status. Overall, some insurance companies will let you keep your current policy intact while your student attends college out-of-state, but others will not. The rules will depend on insurance requirements in that state, intended usage of the vehicle, distance from home, and who owns the vehicle.

    In most cases, the only change you need to make is to let your carrier know the new address where the vehicle will be kept, says Greg Martin, president of Brandon, Florida-headquartered Think Safe Insurance, LLC.

    , director of Strategic Communication for the New York City-based Insurance Information Institute, notes that college students leaving home for school are still considered part of their parents’ household.

    When the parents own the car being insured

    If the parents still own the car the student will be taking with them, it will remain insured under the parents automobile policy, she says.

    When the student owns the car being insured

    If your out-of-state student owns his or her own car and automobile insurance policy, remind them to contact their carrier to learn if their policy needs to be changed while driving on campus. The insurer will want to rate and update the policy properly.

    If they are going to live at or near that school location permanently, its best to change the car policy to that state, Harrell suggests.

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