Motor vehicle insurance; salvage vehicles. (HB441)

Introduced By

Del. Matt Fariss (R-Rustburg)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
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

Bill Has Failed

History

DateAction
01/05/2014Committee
01/05/2014Prefiled and ordered printed; offered 01/08/14 14102928D
01/05/2014Referred to Committee on Commerce and Labor
01/15/2014Assigned C & L sub: Subcommittee #1
01/21/2014Impact statement from SCC (HB441)
01/23/2014Impact statement from SCC (HB441)
01/28/2014Subcommittee recommends laying on the table
02/12/2014Left in Commerce and Labor

Comments

Gregg J writes:

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.