There are several documents you must have as a driver. One is your vehicle’s registration and another is your title. Of course, you’ll also need proof of insurance and a driver’s license to operate a vehicle. While some may confuse a vehicle’s title and registration, the main difference is your title proves ownership and your registration certifies you’re legally allowed to drive the vehicle on public roads.
Keep reading to learn the difference between a title and registration, the different types of titles, how to register your vehicle and how to transfer a title.
- A title refers to vehicle ownership, while registration is the process of registering your car with your state’s DMV.
- When registering your vehicle with the DMV,you must show proof of ownership — your title or financing documents from a dealership.
- Your vehicle registration should be easily accessible and available when driving in addition to your proof of insurance.
What is a car title?
You may have heard of a “pink slip” in reference to your vehicle. This references your vehicle title, which certifies you’re the legal owner of the vehicle. It’s also a legal document issued by a state’s Department of Motor Vehicles (DMV).
It shows proof of ownership; without it, you can’t prove that you legally own the vehicle. And if you took out a loan to buy the car, your lender will retain control over the title until you pay off your loan amount.
The title consists of the following details:
- Name of the vehicle owner and seller
- Weight class
- Vehicle identification number (VIN)
- Details of lienholder if the vehicle is financed
- Odometer reading at the time of sale
- Date of sale
- Signature of both the parties (buyer and seller)
- Addresses of buyer and seller
Vehicle registration, on the other hand, is state required and demonstrates you’ve registered the vehicle and paid any taxes or fees due. As part of the registration process, you’ll receive a license plate and registration document or sticker to place on the plate or windshield. This ensures your vehicle can be visibly identified as current on its registration and ownership can be easily traced.
In Florida, for example, the Department of Highway Safety and Motor Vehicles defines registration as evidence of paying a motor vehicle’s registration taxes and fees. It results in a metal license plate, a validation decal and a registration certificate.
Types of car titles
A car title can be used for more than just proving ownership. There are different types of titles, each of which indicates the specific condition of a vehicle. The following is an overview of various different types of car titles:
- Bonded title: Vehicles that hold no record of ownership receive a bonded title backed by a security bond equal to the car’s value.
- Clean title: A thoroughly inspected vehicle that has never been involved in an accident or sustained any damages receives a clean title certificate.
- Clear title: A vehicle is given a clear title once it has passed inspection after being repaired after an accident.
- Dismantled title: When a vehicle has been in an accident and an insurance claim process has deemed it totaled, it is given a dismantled title.
- Junk title: When a vehicle can’t be repaired and has no resale value, it will receive a junk title.
- Lemon title: If some of the components of a car do not work correctly and make it risky to drive on the road, then the car is titled a lemon.
- Odometer rollback title: A car is given an odometer rollback title if its odometer is turned back illegally. It results in lower mileage readings than the car actually has.
- Rebuilt title: A vehicle that has been rebuilt or repaired after significant damage from an accident will receive a rebuilt title.
- Salvage title: Vehicles deemed a total loss get salvage titles. They cannot be driven until they are fixed and get a rebuilt title.
Learn more about How to insure a salvage or rebuilt title car
How to transfer a car title
There are several situations when transferring a vehicle title is necessary: When you have sold or bought a used vehicle, after a name change or when the owner has died. Generally, the process is relatively easy and the paperwork is filed with your local DMV office.
You’ll need to get a transfer ownership document from your DMV office to begin the process. Each state has different guidelines and requirements so it’s essential to understand them. You will also need your title.
Typically, you and the buyer will sign the title and you will add the current vehicle odometer reading. You may also need a bill of sale detailing the vehicle sale price and buyer details. There is typically a nominal fee for transferring a title.
The National Highway Traffic Safety Administration (NHTSA) updated the odometer requirements for title transfers. According to the NHTSA, you will need to include odometer disclosures until vehicles are 20 years old, starting with the 2011 model year. If your vehicle is 2010 or older, you can check the exempt box on the title.
What is vehicle registration?
Your vehicle must be registered with the state annually. In order to legally drive your car on the road, you must register your vehicle with the DMV or Transportation Department, depending on the state you live in.
The documentation you will need when registering your vehicle includes:
- Driver’s license
- Proof of insurance
- Odometer reading
- Smog check
States require vehicles to be registered for various purposes such as determining owner identity and providing helpful information during criminal investigations or at the time of tax assessment.
A vehicle registration certificate is something you should carry whenever you are driving. You never know when law enforcement will pull you over, and they’ll ask to see it.
How do you register your vehicle?
When you register your vehicle, you must be prepared to show various documents — your driver’s license, proof of insurance, vehicle title or financing documentation from a car dealership and a bill of sale. You may also need to complete a Vehicle Identification Number (VIN) inspection and smog check.
When registering a vehicle with your state’s DMV, your name must be on the vehicle’s title. If you’re financing a vehicle, the dealership will typically complete an Electronic Dealer Report of Sale (EDRS) and provide the necessary paperwork to register it. This is essential since you do not have your vehicle title until the financed loan is paid off.
For example, in New York state, if you register a vehicle you bought from a private party, you must show the DMV acceptable proof of ownership with a title certificate and a bill of sale. You would register the car and apply for a title in your name — when you buy a car, the title is signed over to you.
Do I need vehicle proof of ownership to insure a car?
You must show proof of insurable interest to insure a vehicle on your car insurance policy. This usually means to an insurer that you have some ownership of the car.
You may need to have your name added as a co-owner of the car to be able to place it on your insurance policy, but it depends on your insurance provider. Some allow parents to insure a child’s car on their policy without being on the title while others will not if you are not listed as a co-owner of the car.
Can you register a car under a different name than on the title?
There can be two names on a title. State laws differ, but when you register a vehicle and the names are joined by the word “or,” one owner can sell the vehicle without the other’s signature or consent. “And” or a slash (/) requires the signature of each owner to sell the vehicle.
In most states, even if you are listed as the car’s co-owner, your child could register it in their name. The best way to see if you need to be added to your son’s title as a co-owner with insurable interest is to add the car to your insurance policy.
Or, if you are comparing quotes for the cheapest car insurance, ask the insurance carriers what their underwriting rules allow in this situation.
Finally, check with the DMV to ensure it accepts insurance for a child’s car in your name.
— Katrina Raenell contributed to this story.
Resources & Methodology
Sources
- Florida Department of Highway Safety and Motor Vehicles. “License Plates & Registration.” Accessed August 2024.
- National Highway Traffic Safety Association. “Consumer alert: Changes to odometer disclosure requirements.” Accessed August 2024.
- Nevada Department of Motor Vehicles. “Registration — Nevada dealer sales.” Accessed August 2024.
- Nevada Department of Motor Vehicles. “Vehicle titles and ownership.” Accessed August 2024.
- New York State Department of Motor Vehicles. “Get proof of ownership at purchase.” Accessed August 2024.
- New York State Department of Motor Vehicles. “Vehicle bill of sale.” Accessed August 2024.
- Florida Highway safety and motor vehicle. “Department of Highway Safety and Motor Vehicles” Accessed August 2024.
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