When can an owner retain the existing title for a recovered theft vehicle?

An owner can retain the existing title for a recovered theft vehicle when they have been compensated for the replacement value of the vehicle. This occurs because when an insurance company pays out for a total loss, the ownership rights typically transfer to the insurer. However, if the owner has received full payment for the value of the vehicle and the vehicle is recovered, they might maintain the title because they no longer have a claim on the vehicle. Essentially, since they have been compensated for the loss, the vehicle legally belongs to them, allowing them to keep the existing title.

In contrast, retaining a title when repairs are less than the replacement value does not apply because the owner typically would still hold ownership and not deal with the title situation requiring retention due to insurance payout. Having a salvage certificate signifies that the vehicle has been declared a total loss and usually cannot maintain the original title. If the repairs exceed the replacement value, the owner may not retain the title since they would have been compensated for the loss and would not have a legal claim to keep the original title under those circumstances.