I found a 1955 Chevy in a collapsed barn. I paid cash and got a handwritten Bill of Sale. I wanted to insure it immediately against fire/theft while I restored it, but every agent asked for a “Copy of Title.” I didn’t have one yet. I was stuck in the “Insurable Interest” purgatory.
Key Takeaways
- Insurable Interest: You don’t need a Title to insure a car; you need “Insurable Interest.” A Bill of Sale + physical possession proves this.
- “Restoration” Policy: You need a non-registered, non-driven policy. These are easier to get without a title than a liability policy.
- Bonded Title: You will eventually need a Surety Bond to get a title. Start this process immediately.
- The Payout Risk: If the car is stolen before you get the title, the insurer may withhold the check until you prove ownership legally.
The “Why” (The Trap): Proof of Ownership
Insurers are terrified of insuring stolen cars.
If you can’t produce a title, they worry a “real owner” will pop up later.
However, for Comprehensive (Physical Damage) only, many specialty carriers are lenient if you can show a clear chain of custody via a Bill of Sale.
[IMAGE: Photo of a handwritten Bill of Sale next to a Surety Bond application]
The Investigation: I Called Them
I tried to insure a “No Title” barn find.
1. State Farm
- Response: “We need a registration or title to write the policy.”
- Verdict: Roadblock.
2. Hagerty
- Response: “We can bind coverage with a Bill of Sale.”
- Condition: The car cannot be driven. It must be on “Restoration/Storage” status. They gave me 6-12 months to produce the title.
- Verdict: The solution.
3. Surety Bond Company
- The Process: I bought a “Lost Title Bond.” Cost $100. This legally backs your claim to the car, satisfying the insurance requirement in many states.
Comparison Table
| Status | Standard Carrier | Specialty Carrier |
| Title in Hand | Covered | Covered |
| Bill of Sale Only | Denied | Covered (Storage Only) |
| Bonded Title | Covered | Covered |
Step-by-Step Action Plan
- Get a Detailed Bill of Sale: It must include VIN, Make, Model, Seller Name/Address, Buyer Name, Date, and Price. Not just “sold car.”
- Apply for “Storage” Insurance: Do not ask for liability/road coverage. Ask for “Comprehensive Only” or “Restoration.”
- Start the Bond Process: Go to your DMV’s “Bonded Title” page. Buy the surety bond.
- Police VIN Check: Have a police officer come verify the VIN is not reported stolen. Keep this report; it helps the underwriter feel safe.
FAQ Section
What if the car has no VIN tag?
You are in trouble. You need a state-assigned VIN before anyone will insure it.
Can I insure a car I haven’t picked up yet?
Yes. Once you pay for it, you have insurable interest. Insure it before the transport truck picks it up.
What if a previous owner claims it later?
That’s why you bought the Surety Bond. The bond pays them; you keep the car (usually).