Motor vehicle insurance; salvage vehicles. (HB441)
Introduced By
Progress
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Introduced |
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Passed Committee |
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Passed House |
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Passed Senate |
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Signed by Governor |
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Became Law |
Description
Motor vehicle insurance; salvage vehicles. Requires a new insurance policy insuring a motor vehicle known to the insurer to be a salvage vehicle to contain, if the policy provides collision or comprehensive coverage, a notice that (i) the motor vehicle is a salvage vehicle and (ii) in the event of an accident in which the motor vehicle is declared a total loss, the insured will be paid less money than he would if a salvage certificate had not been issued for the vehicle because the actual cash value of a salvage vehicle is generally less than it is for motor vehicles that are not salvage vehicles. The measure also requires any schedule of rates, rate classifications, or rating plans for motor vehicle insurance providing collision or comprehensive coverage that is filed with the State Corporation Commission to provide for an appropriate reduction in premium charges for those motor vehicles for which a salvage certificate has been issued. The reduction in premium shall reflect that the actual cash value of a motor vehicle of a specific make, model, age, mileage, and condition for which a salvage certificate has been issued is less than that of a motor vehicle of the same make, model, age, mileage, and condition that is not a salvage vehicle. The requirement for a premium reduction applies to policies for which the rates are based on the actual cash value of the insured motor vehicle. Read the Bill »
Outcome
History
| Date | Action |
|---|---|
| 01/05/2014 | Committee |
| 01/05/2014 | Prefiled and ordered printed; offered 01/08/14 14102928D |
| 01/05/2014 | Referred to Committee on Commerce and Labor |
| 01/15/2014 | Assigned C & L sub: Subcommittee #1 |
| 01/21/2014 | Impact statement from SCC (HB441) |
| 01/23/2014 | Impact statement from SCC (HB441) |
| 01/28/2014 | Subcommittee recommends laying on the table |
| 02/12/2014 | Left in Commerce and Labor |
Comments
This bill is a waste of time. Instead of this, a law should be enacted that forbids the sale of salvaged vehicles. Salvaged vehicles rebuilt in one state can be retitled in another state without a salvage title. This puts unknowing drivers at risk in a future collision and drives up insurance rates for all drivers. A more effective bill should've been introduced that protects consumers and not just insurance companies.