What’s the Difference Between a Vehicle’s Registration and Title?

There is a lot of legal terminology and jargon when it comes to car insurance policies. Knowing what each of the terms means, and how the terms are applied, can be essential to understanding your auto insurance plan. At Cheap Auto Insurance, you get the tools to help you understand not only terminology, but more details as well. Many people have questions when it comes to the differences between a vehicle registration and the vehicle title. They are both issued by government agencies but are used for different things. Each state can have different rules and procedures regarding car registrations and titles, but many things are the same from one state to the next.

What Is A Vehicle’s Title?

When companies or government agencies asked for proof of ownership of a vehicle, the vehicle's title is likely what you will be presenting. Car titles are legal documents and declare who the legal owner of the car is. In many cases, it is the person driving the vehicle, but in other cases, it is the lienholder who is the legal owner of a car. If you are getting financing from a company, the dealership will remain the owner of the vehicle until an adequate amount of the loan is paid off. When refinancing a car loan, the lienholder will change, and the vehicle title document must be updated in order to reflect the changes. Some states require that a lienholder be listed on the title of the vehicle until it is completely paid off. Other states have car titles issued to the registered owner of the car, regardless of whether or not there is a lien on the vehicle.

What Is A Vehicle’s Registration?

A vehicle registration serves a different purpose. It is documentation from a state's tax office and validates that your vehicle has been logged into their system. It is also proof that your vehicle has been determined to be roadworthy. Each state has different requirements, but most states do require a person to pay a tax or other type of fee in order to get a car registered. People who have not registered their vehicles can face tickets and fines.

Some states do require that vehicles pass an inspection to be registered. Also, most states require a person who is registering their vehicle to have an automobile insurance plan. A licensed driver will need to declare themselves as the primary owner and the person who has the title. License plates are issued to registered vehicles, as well as other documentation so drivers can prove that your vehicle has been registered as required.

Main Differences

A person’s registration can be affected by several things. These can include toll violations, parking tickets, unpaid taxes, and unpaid tickets of other types. If you have car registration issues, it is possible that the completion of your auto refinance loan can be delayed. Make sure that you have valid documentation in place regardless of whether you are looking to change the title, get a title for the first time, or register your vehicle.

Auto insurance titles are legal forms that show who owns a vehicle. Registration verifies that a vehicle is cataloged in the government's systems and that any taxes or fees that are due have been paid. Car registration is a necessary part of getting a vehicle title. To successfully register your vehicle, you will need to have a valid car insurance policy. You can get the top car insurance prices available at Cheap Auto Insurance. Enter your ZIP Code and get free car insurance quotes to find the best prices on car insurance available. In less than 10 minutes you could save hundreds of dollars on auto insurance coverage. Insurance coverage is needed to register your vehicle, but is does not need to break the bank. Save today!