Hawai'i now lets insurers drop the notary on totaled-car titles - but carriers take on new liability in the trade.
A new Hawai'i law, S.B. 2053, reshapes the paperwork insurers handle after a total-loss settlement. It amends Section 286-48 of the Hawaii Revised Statutes, the law covering ownership certificates for salvaged vehicles. The measure was introduced by Senators Jarrett Keohokalole, Stanley Chang, Troy Hashimoto, Angus McKelvey, Tim Richards, and Joy San Buenaventura, and was enacted as Act 092 on June 5, 2026.
The change itself is straightforward. When a totaled vehicle transfers to an insurer, the supporting documents no longer need a notarized signature. They can be signed electronically and printed on hard copy. The law says those documents include, but are not limited to, power of attorney, an application for duplicate title, and odometer disclosure forms.
Lawmakers explained the move in the bill: the old process could cause delays and paperwork burdens because of notarization and manual-signature requirements, raising administrative costs and weighing on vehicle owners, insurers, and the counties.
The catch sits in the fine print. In return for the e-signature option, an insurance company must indemnify and hold harmless the director of finance for any claims resulting from a title issued using documents signed electronically without a notary. Put simply, the county shifts that risk to the carrier.
The timing rules around salvage transfers stay in place. An insurer or its authorized agent still must forward the vehicle's endorsed certificate of ownership, certificate of registration, license plates, and an application for a salvage certificate to the director of finance within ten days of the settlement. Once those land, the director issues a salvage certificate in the name of the insurer. And where an insured or claimant keeps the salvage vehicle instead, the insurer still must notify the director within ten days of the settlement date.
The law also keeps the existing rules for what happens next. When an insurer resells a salvage vehicle, it must transfer the salvage certificate, issue a bill of sale on the prescribed form, and tell the buyer in writing about the recertification requirements. Sales are limited to licensed buyers or to someone who signs an affidavit stating whether the vehicle will be rebuilt. If it is rebuilt to run on the road again, it cannot be retitled until a licensed, bonded repair dealer certifies the work followed the manufacturer's repair procedures, and the new certificates must carry the words "Rebuilt Vehicle."
For carriers, the practical takeaway is a faster, cheaper title workflow traded against a fresh indemnification duty. The law takes effect July 1, 2027, giving claims operations time to update their salvage-title processes before the new rules bite.
