You keep mentioning the policyholder in 3rd person. The policyholder is irrelevant in this matter. If the car is registered and titled to you, then you must be the named insured on the policy and insure the car solely in your name.

If the current policyholder is not on the title or the registration, then the insurance will likely not payout as theres no legal obligation to.

Thats very possible. You would be better off asking them about it before it happens. And trying to explain the situation. If you dont bring it up, but knew about it beforehand, that can be classified as withholding information, which is a form of insurance fraud.

They will usually go over prices and values regardless. However, they will not release the funds until they have the title. This is because when they total out the vehicle, they are taking ownership. They are basically buying your car from you. Nobody buys a car without the title in hand.

You should really call your insurance company directly and get a 2nd opinion. DOI rules vary from state to state, however insuring a vehicle you do not own is not a chance I would be willing to take right now in todays economy. Insurance companies are tightening up their claims departments across the board right now due to higher claim payouts and increased costs in vehicles & homes.

Have they already paid you for the value of your vehicle? It sounds like the claim is still being processed given that they asked for the title before processing the payout.

Is the vehicle titled and registered to you, or your mom in Oregon? It sounds like it is titled/registered to you. Regardless if you are listed as a driver on your moms policy or not, they are going to unfortunately deny your claim to total your vehicle. Insurance has to be written under the name of the vehicle owner. If it is not, then that is what is called "breach of declaration", and your claim can, and will usually be denied. Your mom has no legal ownership of the vehicle, so she cannot legally insure it on her policy.

If youre only away at college then you are fine for the address issue. The vehicle registration address doesnt have to match the address on the insurance policy as long as its in the same state or theres a different mailing address. The issue you will run into is if the car is registered and titled in your name, but the vehicle is insured on your moms policy with you only listed as a driver.