When an insurance company pays for a claim on a vehicle and ends up taking ownership of it, they might process the title with a Certificate of Destruction. A Certificate of Destruction means that the car is set to be destroyed by a dismantler or junkyard and cannot legally be driven on the road again.
Sometimes vehicles that carry a Certificate of Destruction still appear to be in good working condition. The only reason the insurance deemed it otherwise was for their liability. If that car were to cause an accident because of an existing defect, they could get into a lot of trouble after the fact. Insurance companies also issue certificates of destruction if the airbags are damaged, the frame is weakened or if they don’t want to spend the money on an inspection.
Typically, a car with a Certificate of Destruction gets sold to a junkyard and can never be legally driven again. It is often accompanied by a salvage title status which means the car has been deemed a total loss by an insurance company in whichever state it was insured in.
Let’s learn more about what a Certificate of Destruction means and how it gets assigned. Whether you’re facing a Certificate of Destruction, salvage title or some other form of title branding, we are experts in the field and are ready to help you. For starters, you can quickly check your car’s history for this certificate with a Vehicle History Report using the button below.
The Purpose of a Certificate of Destruction
There are numerous purposes for having this certificate. First, it releases any responsibility of the car’s owner and insurer. It proves that the vehicle:
Is off the road
Has been processed by the salvage facility
Cannot be registered again
In addition, any time you scrap your car, a reputable company should provide you with a Certificate of Destruction. It’s the last stage of transferring ownership. If you don’t receive one promptly, make sure you follow up to cover your bases. You don’t want to be in a situation where it’s your word against theirs.
If You Don’t Receive a Certificate of Destruction, That Could Be a Scam
It’s a common scam to be told your vehicle will be getting scrapped while the dealer makes some repairs and sells it to another buyer for far more than they paid you for it. Similarly, if you sell your car to someone to scrap it and you don’t receive a Certificate of Destruction, the car could still be registered in your name and driven by whoever bought it.
This leads to numerous issues. Just imagine what might happen to you if someone else drives an unsafe vehicle that’s registered to you. Furthermore, what if they used it to partake in illegal activities? These are all scenarios you don’t want to deal with.
It’s also essential that you examine your Certificate of Destruction for authenticity. Many people have fallen victim to the common tactic for scrap yards who issue false documents. They have often named them things such as Certifications of Destruction, Documents of Destruction or Certificates of Collection. Those names are not correct.
How to Avoid Getting Scammed
First, check your state’s DMV website to see what an authentic Certificate of Destruction should look like in your state.
In today’s day and age, you have all the tools you need to verify that a company is legitimate. Before you turn your vehicle over to the scrap yard, you want to do your research to ensure their reputation is top-notch. Don’t do business with anyone that seems to operate a shady business.
Start by checking their Google reviews online. Then, meet with the company and trust your instincts. If they seem shifty, chances are you’re right. It’s also possible that the yard has a rating with the Better Business Bureau. If they are in good standing, this is often a reliable sign you can trust them. When you work with a reliable junkyard, they will have you fill out all your information. They’ll also provide you with some sort of receipt regarding the transaction. Make sure you get that before they take your vehicle.
If you aren’t already doing business with a salvage yard, your car dealership might be able to point you in the right direction. Chances are, they know who’s reliable in the business and who to stay away from.
Once the car is in their possession, they should process the Certificate of Destruction and give it to you. This proves you are no longer legally bound to that vehicle in any way.
What’s the Difference Between a Certificate of Destruction and a Salvage Title?
There’s a lot of confusion over the difference between a salvage title and a Certificate of Destruction. Sometimes, if a vehicle is considered a total loss, there’s still the option to request a salvage title.
Let’s make it easy to understand. The Certificate of Destruction is basically the car’s death certificate. It states that the vehicle’s life is over. It is not meant to be operated on the road and there is no permission given to rebuild it. The car is only good for parts and scrap metal. You won’t be able to repair and sell this car in the future; it’s worthless to anyone but a scrapyard or dismantler.
The salvage title is something completely different. Most states utilize a formula that breaks down the cost of repairs versus the current value. If the cost to repair the car is less than the value, you might be able to get a salvage title.
A salvage title allows you to repair the vehicle and put it back on the road. Keep in mind that you must have it inspected and jump through a few hoops before receiving a regular title again. If there is any chance you think you could rebuild your car, then you need to have a salvage title and a Certificate of Destruction is not needed.
How Do I Find Out if a Car Had a Certificate of Destruction in the Past?
If you are planning to purchase a vehicle and want to see what you’re getting into, or you want to know more about your own car, it’s always wise to run a scan and get informed. Sometimes a Certificate of Destruction doesn’t show up on a basic VIN Check, so I would suggest getting a more extensive report like the one we offer at Dirt Legal instead.
If you have sold a vehicle to the junkyard and are concerned whether it received the certificate of destruction, you could also run this check. This would offer you some peace of mind regarding what happened to your car.
All business related to car titles is confusing. Most average drivers have a hard time navigating the world of titles. Whether you want to get a replacement title or get information on your vehicle’s history, the title experts at Dirt Legal are available to help you. Contact us today with any questions you may have.
We are not attorneys. This article is not legal advice. Cover image source
We will look at the states that brand titles in a way that effectively ends that car and what out-of-state options you may have. Why say ‘may?’ Because we can’t guarantee it, but we can give you the best shot at getting one back on the road.