Vehicle title branding

Vehicle title branding is the use of a permanent designation on a vehicle's title, registration or permit documents to indicate that a vehicle has been written off due to collision, fire or flood damage or has been sold for scrap.

The designation or brand is mandatory in most provinces and states in North America when an insurer or vehicle owner writes off a vehicle as a "total loss". Typically this means the cost to repair the vehicle would equal or exceed the car's value, although legal definitions vary.

Objectives

The title branding programs typically have two objectives:

A deterrent to auto theft: If a vehicle is a complete loss due to an accident, its serial number (VIN, Vehicle identification number) and registration documents could still be of potential value to persons dealing in stolen cars. The diminished sale value of a title branded vehicle reduces the profitability of switching the registration and VIN from an accident vehicle to that of a stolen vehicle of the same make and model/year, in an attempt to register it as a rebuilt car and sell it.

A consumer-protection warning: Cars which have been involved in serious collisions often find their way into auctions and onto dealers' lots. A permanent record of a severe accident warns potential subsequent owners that a car has been damaged (and possibly repaired). Properly repaired and carefully inspected, a vehicle may be acceptable – but an improper repair after a serious accident may leave the vehicle frame, body or key electrical and mechanical systems in damaged or non-roadworthy condition.

Mandatory vehicle branding

In North America, the vast majority of vehicle titles are issued by individual provinces/states and territories. Most have implemented some branding scheme to warn subsequent owners of a vehicle of severe damage to a vehicle due to collision, theft or disaster.