Salvaged Vehicle Laws
Salvage laws are designed to ensure that buyers are aware that a vehicle sustained extreme damage or was declared a total loss at some point. Although many view a salvaged car as undesirable and incapable of being driven, that is not always the case. Salvage laws serve as a legal protection for buyers planning to purchase a salvaged vehicle.
Other People Are Reading
-
Types of Laws
-
There is no federal government regarding salvaged vehicles. Instead salvaged vehicle laws vary by state, with each state determining what it considers to be a salvaged vehicle.
Determining a Salvaged Vehicle
-
Salvage laws consider the amount of damage done to the vehicle. Usually states consider the cost to repair the vehicle versus the pre-accident cost of the vehicle. If the cost to fix the damaged vehicle exceeds a certain amount, then the law declares the car to be salvaged. Kentucky, Louisiana, Nebraska and South Carolina, for example, set the damage limit at 75 percent of the value of the car. In Massachusetts, Nevada and New Jersey, for instance, if the insurer believes the vehicle cannot be realistically repaired, the vehicle is declared a salvaged vehicle.
-
Identification as Salvaged
-
Depending on the state's regulations, for a salvage certificate to be issued by the state for a damaged vehicle, the owner must possess a clean title, certificate of title, license plates and pay the required fees to the state's department of motor vehicles.
Misconceptions
-
After being repaired, many salvaged vehicles can be driven again. Before the vehicle can legally be driven on the road it needs to undergo an inspection by the department of motor vehicles. Before
purchasing and driving a salvaged vehicle, take into consideration that insurance companies won't provide the driver with car insurance or will provide insurance at a high rate.
Expert Insight
-
In order to sell a salvaged car at a higher price, clear the vehicle's salvaged status. Take the salvaged vehicle's title, application for salvage vehicle title and an inspection report to a state office that changes the title from salvage to rebuilt. Most states' DMV websites offer information on the location of the office that changes a vehicle from salvage to rebuilt status.
-
