LEGISLATIVE UPDATE

Salvage Title Task Force Zeros in on Changes

by Sam Richie, AASP-MN Lobbyist

The Legislative Task Force on Salvage Title Laws met again on January 12, 2022 to review language proposed by staff based on six months of work by the Task Force. One of the key provisions proposes to establish an “insurance-loss” title brand. This new title brand would be applied to in-state non-commercial vehicles that are outside the high-value or late-model thresholds currently in statute.

It would be applied when a vehicle is acquired by an insurance company as a total loss or when a vehicle is self-insured and sustains damage equal to at least 80 percent of its cash value. Essentially, the “salvage” brand on damaged high-value and late-model vehicles would remain unchanged, a position AASP-MN has been fighting for since this process began. The new brand would be for vehicles in the same circumstance but that do not fall under the “high-value” ($9,000-plus) or “late-model” (six years) definitions.

The Department of Public Safety - Office of Driver and Vehicle Services expressed concern about establishing this new “insurance loss” title brand. This new term-of-art in Minnesota could create confusion since it is not a titled use in other states.

In lieu of establishing a new title brand, the Task Force asked staff to rely on the definition of “priorsalvage” which is broader usage and more clearly understood throughout the country.

The organizations, including AASP-MN, who have been closely monitoring this process expressed a willingness to support the Task Force initiatives. Some concern was raised by the Minnesota Automobile Dealers Association (MADA) regarding whether they would have actual knowledge of prior damage as they receive and resell vehicles that have sustained collision damage.

There will be one last Task Force meeting to be convened before the 2022 legislative session begins on January 31. The AASP-MN lobbying team will continue to closely monitor the Task Force process and will seek input from members as the proposal evolves into its final version for legislative consideration during the 2022 legislative session.