Final rules just issued by the Department of Justice are designed to help prevent auto fraud by connecting motor vehicle agencies in states throughout the country and requiring more insurance companies to disclose totaled vehicles. The new rule will close previous loopholes and improve the ability of auto dealers and consumers to track potentially dangerous salvage vehicles.
Says
“Unfortunately many states are reluctant to provide their total-loss information to the NMVTIS database, which is why legislation is still needed.” — Ivette Rivera, executive director legislative affairs, NADA
“Insurance companies have resisted reporting the VINs of all their totaled vehicles to the public for years. NADA is pleased that the justice department rejected insurer efforts to weaken the NMVTIS rule.” — Rivera
“A public-private partnership that combines NMVTIS with the technological expertise of private sector vehicle history report companies would allow anyone buying used cars — consumers, businesses, dealers, auto auctions, etc. — to more easily identify one of these totaled cars or trucks.” — Rivera
Significant Points
NADA supports National Motor Vehicle Title Information System (NMVTIS)
Helps dealers, consumers track salvaged vehicles
NADA wants used-car resale market to access info
Also concerned 14 states don’t participate, creating gaps
Dishonest sellers can wash salvaged titles through different states
Situation
Department of Justice issues final rules on salvage disclosure
Requires insurance companies to report totaled vehicles
Includes vehicles totaled under insurance guidelines, not just state’s
