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FACT SHEET
Salvage Certificates of Title
PURPOSE:This fact sheet
provides basic information on the issuance of Salvage Certificates of
Title by insurance companies, salvage pools, and the state of Idaho.
DEFINITIONS: Reconstructed
or Repaired Vehicle: A vehicle that has been rebuilt using like make
and model parts and that looks like a vehicle that was originally
constructed by a distinctive manufacturer. This includes salvage
vehicles requiring a "reconstructed vehicle" or "repaired vehicle"
brand and replica (kit) vehicles, but does not include glider kits.
Salvage
Vehicle: Any vehicle
(1) having a salvage certificate, salvage bill of sale, or other
documentation showing evidence that the vehicle has been declared
salvage, or (2) which has been damaged to the extent that the owner or
an insurer or other person acting on behalf of the owner, determines
that the cost of parts and labor minus the salvage value makes it
uneconomical to repair or rebuild. Or (3) when an insurance company has paid
money or made other settlement as compensation for a total-loss
vehicle. Insurance companies must issue a salvage certificate for all
vehicles deemed salvage or total-loss vehicles.
Total
Loss Vehicle: Every
vehicle deemed uneconomical to repair due to scrapping, dismantling, or
destruction. A total loss shall occur when an insurance company or any
other person pays or makes other monetary settlement to the owner when
it is deemed to be uneconomical to repair that damaged vehicle. The
compensation for total loss as defined herein shall not include
payments by an insurer or other person for medical care, bodily injury,
vehicle rental, or for anything other than the amount paid for the
actual damage to the vehicle.
Owner-Retained
Salvage: When a vehicle has
been declared a total loss
and the owner retains ownership of the vehicle.
Salvage
Pool: A licensed vehicle
dealer engaged primarily in the
business of disposing of salvage vehicles, recovered stolen vehicles,
or both.
EXEMPTIONS:
Motorcycles, manufactured homes, all-terrain vehicles, snowmachines,
class A and C motorhomes, vessels, and trailers are exempted from
salvage and branding requirements.
MAJOR
COMPONENT PARTS:
Passenger vehicles generally contain four major component parts which
are critical to the safety of the vehicle, as defined in Section 49-114
(1), Idaho Code:
1.
Front End Assembly -
Everything forward of the cowl.
2.
Center Passenger Area - From
the cowl back to the rear passenger
seat or factory seam separating the rear section or a line through the
rear axle.
3.
Roof of Passenger Area -
Includes the roof and supports if the
supports are attached at the lower door or minus the supports if they
are attached at the upper roof seam or halfway through the support and
glass area.
4.
Rear Clip Section -
Everything rear of the passenger area.
If the vehicle is of body-over-frame construction, the frame is the
major component part (5).
Pickup trucks generally only contain three major component parts:
1.
Nose - Everything forward of
the cowl.
2.
Cab - Which is considered as
one unit.
3.
Frame - The heavy metal
structure supporting the vehicle’s
body and other external parts.
The bed is not considered a major component part unless the vehicle has
the cab or body of the vehicle attached, such as in the old El Camino,
Subaru Brat, and certain VW pickups. In this case, the rear quarter
panels are treated as rear clips.
Primary
Damage: Local damage
occurring at the point of impact on a
vehicle.
Secondary
Damage: Damage caused by
misplaced energy that causes
stresses in suspension and/or body dimensions at areas other than the
primary impact zone. If the secondary damage area can be repaired or
replaced within a six (6) hour period, as indicated in a recognized
collision estimating guide, the damage will not be counted as a section
or major component part while inspecting for branding considerations.
SALVAGE DETERMINATION CRITERIA:
A salvage certificate will be
issued to any vehicle that meets the definition of “Salvage
Vehicle” per Section 49-123(M), Idaho Code, which requires
the owner or insurer of the vehicle to determine the vehicle is either:
- uneconomical to repair and
is declared a total loss, or
- the result of an unrecovered
theft.
ISSUANCE
PROCEDURE:
A salvage certificate must be issued for any salvage vehicle. The
salvage certificate will serve as the legal ownership document for the
vehicle and will take the place of the previous title or manufacturer's
certificate of origin (MCO).
- If the vehicle was declared
a total loss and an insurance company paid damage to the owner and
received the certificate of title, and the vehicle insurance company must issue a
salvage certificate of title prior to resale of the vehicle and must
surrender to the department the ownership documents, a copy of the
salvage certificate, and salvage certificate fees.
- If the vehicle was declared
a total loss and an insurance company paid damage to the owner and the
owner retained ownership of the vehicle and the certificate of title,
the insurance company must notify the department and the owner must
apply for a Salvage Certificate of Title from the Idaho Transportation
Department within 15 days of the date the claim was satisfied. If the
owner of a retained salvage vehicle fails to surrender the title and be
issued a salvage certificate, or sells the vehicle without telling the
buyer that the vehicle is totalled, it is a misdemeanor punishable by
up to six months in jail, a $1,000 fine, or both.
- If a salvage pool takes into
possession a salvage vehicle and the ownership is not evidenced by a
salvage certificate, the salvage pool must issue an Idaho Salvage
Certificate of Title and surrender ownership documents, a copy of the
salvage certificate, and the salvage certificate fees to the department.
- If the vehicle was not
covered by an insurance company and the owner declares the vehicle to
be salvage, the owner must apply for a salvage certificate of title
from the Idaho Transportation Department.
VEHICLE
INSPECTIONS AND BRANDING (for vehicles five years old or less, and/or with
a pre-damage value in excess of $6,000):
Initial Inspection: An initial vehicle major component parts inspection
and determination must be performed prior to rebuilding a salvage
vehicle. The fee for the initial inspection is $25.
- If during the initial
inspection the inspector finds damage in one or no major component
parts requiring repair or replacement, the vehicle will qualify for a
"repaired vehicle" decal, after rebuilding or repair.
- If during the initial
inspection the inspector finds damage in two or more major component
parts requiring repair or replacement, or if the vehicle had flood
damage, the vehicle will qualify for a "reconstructed vehicle" decal,
after rebuilding or repair.
- If rebuilding has begun
prior to the initial inspection, the new certificate of title and
vehicle must be marked "reconstructed vehicle."
Final Inspection: The vehicle shall not
have a certificate of title issued and cannot be registered until the
vehicle has been rebuilt and presented to the inspector for a final
inspection. At that time, the inspector shall attach either a
"reconstructed vehicle" or "repaired vehicle" decal to the vehicle and
verify ownership of all major component parts and significant parts.
The applicant must present a bill of sale or traceable invoice from the
former owner identifying the part by vehicle identification number and
identifying the seller by name and address. The cost of the decal
attachment is $10.
Inspections are made only by the state Motor Vehicle Investigators at
the locations listed below:
| Coeur
d'Alene |
(208)
772-1261 |
|
Lewiston |
(208) 799-4289 |
| Caldwell |
(208)
454-7661 |
|
Boise |
(208) 334-8715 or 334-8750 |
| Twin Falls |
(208) 736-3099 |
|
Pocatello |
(208) 236-6052 |
| Idaho Falls |
(208) 525-7109 |
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| NOTES: |
If the vehicle is six
years old or older and has a pre-damage value of
$6,000 or less, the vehicle does not need to have an initial or final
salvage vehicle inspection. The person rebuilding or repairing the
vehicle must complete a Salvage Vehicle Affidavit (form ITD-3311). If
the vehicle is not being repaired, the person applying for the salvage
certificate must state this on the affidavit. The title will be branded
“Reconstructed Vehicle.”
Salvage vehicle age is determined by subtracting the
vehicle’s model
year from the year the damaged vehicle was declared salvage, as
evidenced by the Salvage Certificate’s issuance date, salvage
bill of
sale date, or other documentation showing evidence that the vehicle has
been declared salvage. A vehicle may not age out of the salvage vehicle
process, regardless of the date of inspection or application. |
This
fact sheet has been provided by:
Idaho Transportation Department • Vehicle Services •
Post Office Box 7129 • Boise, Idaho 83707-1129
The Idaho Transportation Department is committed to full compliance
with Title VI of the Civil Rights Act and all related regulations.
For more information call the EEO Office at (208) 334-8852.
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