why would an insurance company want you to sign over power of attorney for a total loss

by Kristy
(Oakland Md)

Car lost traction on ice fishtailed sideways, was hit by a truck in passenger side on Dec 23, insurance co sent request for a power of attorney form to be signed and extra keys sent to them, they have not paid the claim yet, what does this mean

Answer:


Hello Kristy,


The insurance company should have explained this to you, but I take it that they didn't.

A power of attorney will give the insurance company power to sell your car to them. (They will sell your car to a salvage yard, but since they are not the legal owners, they must get that power from you). Essentially, they will be buying the car from you as if the car was not in an accident (thereby giving you the actual cash value of the car).

The negotiation will be regarding that value. Although you might sign a power of attorney, you still hold the title and the cars is yours until you release the title to them, which you would only want to do until you agree to a proper settlement.

For more about total loss, please see: http://www.auto-insurance-claim-advice.com/totaling-a-vehicle.html


Good Luck,
http://www.auto-insurance-claim-advice.com