Lwiddis wrote:
How did you buy liability insurance without clear title?
I haven't and one can't license a vehicle to travel on public roads & highways without a title. (AFAIK for all US states, perhaps other countries the laws are different) In the US each state write their own DMV laws as their's really no Federal Laws (other than perhaps for commercial vehicles, etc.) that control operations of motor vehicles on public roads.
Federal vehicle laws mostly are concern with the manufacturing and selling of motor vehicle and motor vehicle equipment. If a manufacture or store here in the US manufactures or even sells non-DOT equipment for vehicle the Feds literally can put them out of business.
When a car manufacture manufactures a vehicle the parts of the cars such as vehicle lighting, various electronics, other parts of the vehicle need to be DOT approved. In order to obtain DOT approval and certifcation the parts e.g. headlight for a vehicle, and engineering designs need to be sent to the DOT for inspection and certification. Once DOT approved then assembly line production is able to start.
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The Feds don't normally prosecute people with expired license tabs or people going over the speed limit as each state as well as local jurisdictions create their own DMV laws and speeds limits which includes vehicle licensing.
However with a bonded title from the state you want to register the vehicle you can license a vehicle for public highways.
If your vehicle isn't ever taken onto public highways then I don't believe any of our US states require a vehicle registration with title. There are many modified 4x4 vehicles that are like this, that are usually towed to a private (non-public) off-road areas and legally be driven, however if caught on what is deemed as public roads such as National Forest service roads, etc. and caught by a ranger or other law enforcement agency the driver can be ticketed and the vehicle even impounded. This is a mistake some off-roaders make with 4x4's and ATV's which require licenses to drive on public areas such as National Forest areas. The ATV is another class all together as they aren't allowed on some public on and off-road areas. Each area is different so if using an ATV around any public areas you may want to first find the regulations for that particular area.
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As far as needing a clear title to obtain insurance would be up the the insurance company. Basically the purpose of a title is a requirement for vehicle state licensing. Which an insurance company may or may not require.
There are also different types of Titles such as ones that have a lienholder such as from a bank loan and then there are Salvage titles, Rebuilt Salvage titles, Flood damage title, Surety Bond title and other dependent on what state the vehicle is licensed.
The title does denote some sort of ownership as each state keeps records of past and present title of a vehicle, however I'm uncertain if the title is a legal a bill of sale or be used to replace a bill of sale. Most DMV's recommend besides a title to also have a bill of sale with at least the following information.
Date of sale.
Make, model, and year of vehicle.
Complete vehicle description (color, body style)
Vehicle Identification Number (VIN)
Odometer reading.
Buyer's full name and address.
Seller's full name and address.
Signatures of buyer(s) and seller(s)
VIN on the vehicle should match the VIN of the title. Unless it's e.g. a Salvage rebuilt title, etc. Salvage rebuilt even if inspected don't necessarily mean a vehicle can be licensed to be driven on a public highway. Other inspections may be required by the state to obtain a clear title.
IMO, a one hundred percent clear title won't have any lien on the vehicles title. So if you purchase a new or used car via a bank loan then the bank is still legally in control of the car and title.
