186A.520 Salvage titles -- Conditions for issuance -- Operation of vehicle with
743 words·~3 min read·
/ky/186a-520A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
salvage title.
(1)Except as provided in KRS 186A.555, a salvage title shall be obtained by the owner
of a motor vehicle that meets the following definition of a salvage vehicle:
(a)A vehicle which has been wrecked, destroyed, or damaged, to the extent that
the total estimated or actual cost of parts and labor to rebuild or reconstruct
the vehicle to its preaccident condition and for legal operation on the roads or
highways, not including the cost of parts and labor to reinstall a deployed
airbag system, exceeds seventy-five percent (75%) of the retail value of the
vehicle, as prescribed by a nationally accepted used car valuation guide or
tool identified under KRS 304.20-110.
(b)The value of repair parts for purposes of this definition shall be determined by
using the current published retail cost of the parts equal in kind and quality to
the parts to be replaced or the actual retail cost of the repair parts used in
repair.
(c)The labor costs of repairs for purposes of this section shall be computed by
using the hourly labor rate and time allocations which are reasonable and
customary in the automobile repair industry in the community where the
repairs are performed.
(d)Airbag reinstallation costs which are excluded from the seventy-five percent
(75%) computation as set forth in paragraph
(a)of this subsection shall be
included by an insurer in the computation of the total physical damage
estimate according to the terms and conditions of individual policies, provided
that the total costs payable by an insurer do not exceed the total retail value of
the vehicle.
(2)The owner or an authorized agent of a motor vehicle that meets the definition of a
salvage vehicle as set forth in subsection
(1)of this section shall, within fifteen
days from the receipt of all necessary paperwork required by this chapter, submit an
application to the county clerk, on a form prescribed by the Department of Vehicle
Regulation, for a salvage title, accompanied by a properly endorsed certificate of
title and any lien satisfactions, if any appear, as may be required.
(3)The county clerk shall retain a copy of each salvage title application received and
shall forward the original and its supporting documents to the Department of
Vehicle Regulation in a manner similar to that for handling of an application for a
title.
(4)The county clerk shall rely on the information provided by the owner or authorized
agent, including a county of residence designation, on:
(a)Any approved, notarized state form utilized in lien titling or the title transfer
process signed by the owner or authorized agent; and
(b)Any document submitted during the transfer of a salvage vehicle from an
owner to an insurer.
Reliance on the foregoing by the county clerk shall relieve the office of the county
clerk from liability to any third party claiming failure to comply with this section.
(5)The Department of Vehicle Regulation shall process the salvage title application in
a manner similar to that used in processing a title application and the salvage title
shall be delivered in a like manner of a title. Salvage titles shall be construed as
proof of ownership of a vehicle in a state as to be unusable upon the highways of
the Commonwealth.
(6)A vehicle shall not be issued a registration for highway use as long as a salvage title
is in force. The only time a vehicle with a salvage title may be operated upon the
highways of the Commonwealth is when it is in route to or from an inspection by
the certified inspector prior to obtaining a certificate of title after having been
rebuilt as per KRS 186.115.
(7)Notwithstanding the provisions of KRS 369.103, when a salvage vehicle is
transferred from an owner to an insurer, the following shall be exempted from the
requirements of notarization, including exemption from the notarization of
electronic signature requirements of KRS Chapter 423:
(a)The transfer of ownership on the certificate of title;
(b)Any power of attorney required in connection with the transfer of ownership
to the insurer;
(c)Any required odometer disclosure statement;
(d)The application for a salvage certificate of title; and
(e)The transfer of ownership on the salvage certificate of title issued.
(8)Subsections
(2)to
(5)of this section shall not apply to applications for salvage title
using the electronic title application and registration system established under KRS
186A.017.