OLYMPIA – A bill sponsored by Sen. T’wina Nobles to simplify the process of transferring ownership of a totaled vehicle to an insurance company was heard Tuesday in the Senate Transportation Committee.
Senate Bill 6265 would modernize Washington state’s total-loss vehicle procedures by reducing paperwork and allowing the use of non-notarized electronic signatures. The measure aims to make the process faster and more accessible for consumers while maintaining accurate vehicle records.
“Losing a vehicle is stressful enough,” Nobles said. “This bill is a simple, practical update that cuts red tape and makes the transfer process more straightforward for Washingtonians and insurers alike.”
The proposed legislation focuses on aligning Department of Licensing (DOL) processes with modern business practices. Currently, when a vehicle is declared a total loss following a settlement with an insurance provider, owners must transfer their ownership using notarized forms or title endorsements. SB 6265 would change that by allowing electronic, non-notarized signatures on supporting documents, including limited powers of attorney.
Under the bill, these electronic forms may be printed and used for official documentation, making it easier for insurers and consumers to complete transactions remotely and efficiently. DOL would be required to accept these electronic documents in place of notarized versions for the transfer of ownership.
Washington’s current rules for transferring a totaled vehicle rely on outdated paper-based requirements. Vehicle owners who settle insurance claims for total losses must either endorse their title or sign a DOL-approved release of interest form, which must be notarized. Insurers are then responsible for reporting the destruction or total loss to the DOL.
The bill would update this process by removing the notary requirement for these forms, allowing digital signatures to suffice in transferring vehicle ownership. It would also permit a limited power of attorney to be executed with an electronic signature, solely for the purpose of authorizing insurers to manage the title transfer.
According to the existing law, a power of attorney must be signed and dated by the vehicle owner and notarized or witnessed by two unrelated individuals. Nobles’ bill eliminates those requirements for the limited, specific use of transferring a totaled vehicle to an insurer.
A salvage vehicle is one where the cost of repairs plus the salvage value exceeds the vehicle’s market value, rendering it uneconomical to fix. In these cases, titles are surrendered and vehicles are reported as destroyed. SB 6265 would not alter the classification of salvage vehicles or the requirement that insurers report total losses to the state.
Instead, the bill updates procedural aspects of how ownership is transferred in these situations, aiming to improve efficiency without compromising recordkeeping or consumer protections.
The measure continues to move through the legislative process following its initial committee hearing.
