{"id":34249,"date":"2024-11-11T02:06:56","date_gmt":"2024-11-11T10:06:56","guid":{"rendered":"https:\/\/getjerry.com\/wp-site\/?post_type=car-insurance&p=34249"},"modified":"2025-07-02T10:08:49","modified_gmt":"2025-07-02T17:08:49","slug":"why-does-my-insurance-need-me-to-sign-a-power-of-attorney-for-my-totaled-car","status":"publish","type":"car-insurance","link":"https:\/\/jerry.ai\/car-insurance\/why-does-my-insurance-need-me-to-sign-a-power-of-attorney-for-my-totaled-car\/","title":{"rendered":"Why Does My Insurance Need Me to Sign a Power of Attorney for My Totaled Car?"},"content":{"rendered":"\n

Question:<\/strong> My auto insurance<\/a> said I have to sign the power of attorney before I’ll be paid the value of the vehicle. Is this normal? Do I need a lawyer?<\/p>\n\n\n\n

Answer:<\/strong> When you total your car, the insurance company will take possession of it so that they can compensate you and dispose of it. To do this efficiently, most insurance companies require you to sign an agreement giving them power of attorney.<\/p>\n\n\n\n

Granting power of attorney gives somebody else the ability to make decisions on your behalf. It can be used in various contexts, such as financial, legal, and health matters.<\/p>\n\n\n\n

When it comes to a totaled car, the power of attorney document lets the insurance company decide what to do with the car wreck without having to ask your permission. Power of attorney privileges granted in these cases are generally limited in their scope to what\u2019s necessary for the car insurance claim to go through.<\/p>\n\n\n\n

More:<\/strong> Best car insurance<\/a><\/p>\n\n\n\n

Geico power of attorney example<\/h2>\n\n\n\n

To give an example, let\u2019s look at GEICO\u2019s power of attorney form<\/a>, which has two sections.<\/p>\n\n\n\n

The first is a \u201cBill Of Sale – Power Of Attorney.\u201d This section requires you to list your car\u2019s details like year, make, model, serial number, and odometer reading. You will need to agree to the following paragraph:<\/p>\n\n\n\n

\u201cTo have and to hold all and singular the said goods and chattels to said grantee, its successors and assigns. The undersigned covenants with said grantee that the undersigned is the lawful owner of said goods and chattels, that they are free from all encumbrances, that the undersigned has a good right to sell the same; that the undersigned will warrant and defend same against the lawful claims and demands of all persons.\u201d<\/p>\n\n\n\n

While it sounds complicated, it essentially means that you\u2019re giving the insurer possession of your car.<\/p>\n\n\n\n

The second section is a \u201cPower of Attorney\u201d section, where you grant GEICO<\/a> the ability to make decisions on titles issued by your state\u2019s DMV on your behalf. You\u2019ll need to fill out many of the same car details as in the first section, and you\u2019ll need to sign again. Make sure your signature matches the way your name appears on your car title.<\/p>\n\n\n\n

Though you can consult a lawyer before signing over your car, be aware that this is standard practice for insurance companies dealing with totaled vehicles. Completing the paperwork will help your insurance company do their job, which is helping you get over your car wreck, financially and practically.<\/p>\n\n\n\n

While shopping for a replacement vehicle, this is a good time to compare quotes<\/a> to see if you can save money or improve your coverage. <\/p>\n\n\n\n

More:<\/strong> Cheap car insurance<\/a><\/p>\n\n\n\n

\n
Expert-driven. Built for you.<\/div>\n\n
\n
\n