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Colorado State Title Processing Procedures

  1. What form of title must an insurer obtain in connection with the sale of a vehicle that has been acquired through the settlement of a claim?
  2. What documents must an insurer provide to Copart in order to sell a vehicle on a Certificate of Title?
  3. What documents must an insurer provide to Copart in order to sell a vehicle on a Salvage Certificate of Title?
  4. What documents must an insurer provide to Copart in order to sell a vehicle on a Parts-Only Bill of Sale?
  5. What documents must an insurer provide to Copart in order to sell a recovered theft vehicle recovered substantially intact with no substantial damage, where title is still in the name of the insured?
  6. What steps must an insurer take in Colorado to process an owner-retained vehicle?
  7. What legal duties are imposed upon a lienholder following satisfaction of the lien?


  1. What form of title must an insurer obtain in connection with the sale of a vehicle that has been acquired through the settlement of a claim?

    Pursuant to Colorado Revised Statutes § 42-6-102(13):

    1. “Salvage vehicle” means any vehicle which is damaged by collision, fire, flood, accident, trespass, or other occurrence, excluding hail damage, to the extent that the cost of repairing the vehicle for legal operation on the highways exceeds the vehicle’s retail fair market value immediately prior to such damage, as determined by the person who owns the vehicle at the time of such occurrence or by the insurer or other person acting on behalf of such owner.
    2. In assessing whether a vehicle is a “salvage vehicle” under this section, the retail fair market value shall be determined by reference to sources generally accepted within the insurance industry including price guide books, dealer quotations, computerized valuation services, newspaper advertisements, and certified appraisals, taking into account the condition of the vehicle prior to the damage.
    3. This section shall not apply to a vehicle whose model year of manufacture is eight years or older at the time of damage.

    Pursuant to Colorado Revised Statutes § 42-6-136:

    1. The owner of any motor vehicle for which a Colorado certificate of title has been issued, upon the destruction or dismantling of said motor vehicle, upon its being changed in such manner that it is no longer a motor vehicle, or upon its being sold or otherwise disposed of as salvage, shall surrender the certificate of title thereto to the director to be cancelled; and, upon said owner's procuring the consent thereto of the holders of any mortgages noted on the certificate of title and shown to be unreleased in the office of the director, such certificate shall thereupon be cancelled. Any person who violates any of the provisions of this section commits a class 1 petty offense and, upon conviction thereof, shall be punished as provided in section 18-1- 107, C.R.S.
    2. Upon the sale or transfer of any motor vehicle for which a current Colorado certificate of title has been issued, which motor vehicle has become a salvage vehicle as defined in section 42-6-102(13), the purchaser or transferee shall make application for a salvage certificate of title. The owner of any such motor vehicle may make application for a salvage certificate of title before the sale or transfer of such vehicle. Any owner making application for a salvage certificate of title shall provide the director evidence of ownership which satisfies the director of the right of the applicant to have a salvage certificate of title issued to the owner.
    3. [intentionally omitted]

    Pursuant to Colorado Dept. of Revenue, Titles And Registration Regulations – Dealer Title § 7:

      Vehicles held by dealers or wholesalers to be junked or parted out must be marked "JUNK" on the face of the title. The "JUNK" notation is to be dated and identified as to who declared the vehicle junk. The title must be submitted to the Title Section, Motor Vehicle Division, 1881 Pierce Street, Lakewood, Colorado 80014. A photocopy of the title marked "JUNK", either in the name of the dealership or wholesaler or assigned to the dealership or wholesaler, shall be kept with the vehicle to serve as proof of ownership. The purchaser of any component parts which are identified with a vehicle identification number shall be given a photocopy of the "JUNK" title with the sales receipt.back to top

  2. What documents must an insurer provide to Copart in order to sell a vehicle on a Certificate of Title?

    The insurer shall provide Copart with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, and a release of any liens. [Note: If there is a lienholder showing on the front of a Colorado or Wyoming title, the lienholder must release the lien by signing the lien release shown on the front of the title. In this situation, MVD will not accept a lien release via a separate notarized certification of lien satisfaction].

    Copart will submit these documents along with an Application for Title and/or Registration (Form DR 2411) and the appropriate fee to the Department of Revenue – Motor Vehicle Division for processing.

    Thereafter, the Department of Revenue – Motor Vehicle Division shall issue a Certificate of Title in the name of the insurer.

    Copart, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Title to the purchaser.back to top

  3. What documents must an insurer provide to Copart in order to sell a vehicle on a Salvage Certificate of Title?

    The insurer shall provide Copart with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), an odometer disclosure statement, and a release of any liens. [Note: If there is a lienholder showing on the front of a Colorado or Wyoming title, the lienholder must release the lien by signing the lien release shown on the front of the title. In this situation, MVD will not acknowledge a lien release that is provided on a separate notarized certification of lien satisfaction.]

    Copart will submit these documents along with a DR 2410 Application for Salvage Title and the appropriate fee to the Department of Revenue – Motor Vehicle Division for processing.

    Thereafter, the Department of Revenue – Motor Vehicle Division shall issue a Salvage Certificate of Title in the name of the insurer.

    Copart, acting under a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Salvage Certificate of Title to the purchaser. [See Colorado Revised Statutes §§ 42-6-102(13) and 42-6- 136] back to top

  4. What documents must an insurer provide to Copart in order to sell a vehicle on a Parts-Only Bill of Sale?

    The insurer shall provide Copart with a Certificate of Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney), a release of any liens, and a letter of authorization to sell the vehicle on a Parts-Only Bill of Sale.

    Copart will mark the face of the Certificate of Title with “JUNK”, make a copy, and forward the original title marked “JUNK” to Motor Vehicle Division.

    Copart, acting under a power of attorney for the insurer, will then sell the vehicle at auction and provide a Parts-Only Bill of Sale to the purchaser, along with a copy of the certificate of title stamped JUNK. [See Colorado Department of Revenue Titles and Registration Regulations – Dealer Title § 7] back to top

  5. What documents must an insurer provide to Copart in order to sell a recovered theft vehicle recovered substantially intact with no substantial damage, where title is still in the name of the insured?

    When a vehicle has been recovered, the insurer shall provide Copart with a Title or a comparable ownership document issued by another state or jurisdiction (either endorsed over to the insurer or accompanied by a power of attorney, an odometer disclosure statement, and a release of any liens. [Note: If there is a lienholder showing on the front of a Colorado or Wyoming title, the lienholder must release the lien by signing the lien release shown on the front of the title. In this situation, MVD will not acknowledge a lien release that is provided on a separate notarized certification of lien satisfaction.]

    After receipt of these documents, Copart will apply to the Department of Revenue – Motor Vehicle Division for the appropriate title in the insurer’s name depending upon the year of the vehicle and the damage to the vehicle.

    Copart, acting upon a power of attorney for the insurer, will then sell the vehicle at auction and reassign the insurer’s Certificate of Title or Salvage Certificate of Title to the purchaser. back to top

  6. What steps must an insurer take in Colorado to process an ownerretained vehicle?

    There are no specific requirements.

  7. What legal duties are imposed upon a lienholder following satisfaction of the lien?

    Following satisfaction of lien, Lienholder shall execute and file a notice of discharge (on a form prescribed by the Department of Revenue). Lienholder shall also endorse the release on the Certificate of Title and return the Certificate of Title to the legal owner or to the next subsequent lienholder. Any person who violates any of the provisions of this section is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, or by imprisonment in the county jail for not less than ten days nor more than six months, or by both such fine and imprisonment. [See Colorado Revised Statutes §§ 42-6-125; 42-6-142] back to top
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