New Bill Would Red Flag “Total Loss” VINs for the Life of a Vehicle

New Bill Would Red Flag “Total Loss”

VINs for the Life of a Vehicle

NADA’s efforts to make America’s roadways saferby protectingconsumers from purchasing flood and salvage vehicles took a big step forward as a senior lawmaker introduced legislation, S. 3707, requiring insurance companies to make total loss information commercially available.

As Senator Trent Lott, (R-MS), chairman of the influential Surface Transportation Subcommittee of the Senate Commerce Committee, noted in his weekly column announcing introduction of the legislation, the bill “will make available to consumers information about automobiles declared a ‘total lossê by insurance companies.This legislation is particularly needed in Katrina’s wake, but it’s hardly a new problem. Even without the influx of Katrina-damaged cars, thousands of wrecked, flooded or stolen automobiles are sold every year with clean titles to unsuspecting consumers.”

The legislation is a new approach to the growing problem of salvage title fraud, which occurs because state motor vehicle titling laws are confusing and incomplete, and no central database exists to “red flag” all of the problem vehicles. Last year, over 5 million vehicles were totaled, including an estimated 500,000 from the Gulf hurricanes, yet many of these cars still have a clean title.

David Regan, NADA vice president of legislative affairs added: “NADA strongly supports Senator Lott’s legislation to help “red flag” totaled vehicles forever. Senator Lott is known as a longtime champion for addressing problems related to salvage title fraud and with the hurricanes in the gulf region he is uniquely positioned toaddress the problem of flood vehicles.”