Title Loan Department

Avoid the Common Risks of Fake Pink Slips and Prevent Getting Duped!


Pink slip was a term synonymous with losing one’s job at the time. The final paperwork on such a firing was served in the form of a pink paper and delivered along with the final settlement paycheck. However, things have changed over time, and a pink slip is now considered to be a much more important piece of paper.

Nowadays, pink slips are usually the proof of your vehicle carrying valid auto insurance, which is mandatory to drive a car legally on the roads. However, one thing which is of concern to the legal departments, as well as the users alike, is the authenticity of these pink slips that are used nowadays. For those who want to know more about it, let’s discuss a few essential pink slip details

Is it mandatory to have a pink slip to drive the car?

In this era of the Internet, you can easily set up a car insurance purchase even without visiting the insurance company or contacting a broker. You can submit all relevant information online and also make the payment through an online transaction to readily avail insurance coverage while purchasing a car. This can be done instantly and easily with the basic amount of information available, and then can be sorted in detail after you are in possession of the vehicle.

The insurer first issues a temporary pink slip, which is usually valid for 30 days. This is also called a liability card, which is issued to be kept on hand until the company issues a permanent card. Until then, the liability card may act as the proof that your vehicle carries the minimum ensured third party insurance as per the specifications of the local authorities.

Upon getting the insurance policy number from the provider, you can next notify the car dealer that you own insurance. With this number, your local car dealer may be able to complete the registration process. Despite all these procedures to arrange insurance coverage through online or offline modes, it’s your responsibility to ensure that you get a copy of the documents before you pick up your vehicle.

How to use the pink slip?

Before you start driving your car, there are three things that must be in your car.

  • Among these three, the pink slip is the first thing to have. You must have it on hand when you are driving your vehicle on the road to prove that you have the minimum level of law-enforced insurance coverage. Without the pink slip, you cannot purchase or register your vehicle.
  • Next, what is referred to as ownership is the green document. This also needs to be to be kept in your car while you are taking it on the road. The green document verifies that you have the legal ownership of the vehicle in case of a traffic stop and some charges.
  • You must also have the license plates and validation stickers in the right place. These also must be attached to the vehicle when you are taking it out for a drive.

It should be noted that each time you change or renew the vehicle insurance; the insurance company will issue new pink slips. It is important to have the most updated pink slip in the car. The policy number may remain the same, but the new pink slip should be there to represent your active and updated coverage. If in case you lose or damage the pink slip, immediately contact your insurance provider to obtain another one to be kept handy.

The fake car titles to beware of

unrecovered vehicles

It is estimated that more than six cars are stolen in the major US cities like Los Angeles. A lot of those vehicles are later recovered, but still on an average of almost 8,000 to 10,000 owners never see their cars again in the major cities. The unrecovered vehicles may get chopped up or resold to unfortunate buyers.

If you are planning to buy a used car, then it is worth to know about the possibility of fake titles to avoid falling prey to the scams. The paper titles like pink slips offered by authentic providers are difficult to counterfeit. However, there are third parties that duplicate these multicolor forms and get them embossed with a fake state seal to be imprinted.

The authorities already agree that title fraud is a widespread scam, but the exact extent of it is still unknown. The private vehicle sales to common citizen are the events in which the people usually get cheated with fake titles. DMV investigators of the state lately see a lot of title fraud executed by the unlicensed local used-car dealers, who often temporarily set up their vehicle sale yard at the parking lots of shopping centers or so.

You can take some precautions to save yourself from the chaos of buying a stolen car with a fake title and duped pink slip.

  • Always ask for the driver’s license of the seller. When dealing with a fraud, there is also a high chance that it also may be fake, but it is worth to ask for it. If you identify that person doesn’t have it or is unwilling to show it, you better look for another option.
  • While calling a dealer, never disclose specific information that you may have seen in an ad. Be generic about “I’m planning to purchase a used car.” If you find the seller wants you to be specific or if he is acting evasive or hesitant with the answer, it may probably be a “curbstoner” selling used cars illegally.
  • It is also not wise to make a purchase from a person who meets you at a destination other than a personal residence. The fraudulent sellers of stolen cars often pretend to be the actual owners by meeting in front of houses where they don’t live.
  • It is also important to ask for a smog certificate as obtaining this certificate needs to have a legitimate vehicle registration. You may also note that the stolen vehicles with fake titles may be on offer at unbelievably low prices to tempt you to skip these basic steps and close the deal as fast as possible.

Always make sure that the pink slip and titles you get are authentic. Only these authentic documents will help you get a loan for the purchase by making you the legal owner of the vehicle. You can explore https://bayareatitleloans.com/ to get more relevant and updated information on this. Visit the website and call the experts today!


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