Fifteen months following the marketplace enactment of the 75 percent salvage threshold in Maryland (S.B. 568), a bill that adds an exclusion to the threshold for “cosmetic damage” and “the cost of towing, storage or vehicle rental” (H.B. 1199) has passed the Maryland House and Senate.
The bill, supported by the Washington Metropolitan Auto Body Association (WMABA), also includes an amendment to current law that salvage-brands all vehicles that are total-lossed by an insurer. This protects the secondary vehicle owner from unknowingly purchasing a previously totaled vehicle and also removes the incentive to prematurely total-loss a vehicle because of higher salvage value. The last portion of the bill gives the insurer the reserved right to make a decision to total-loss the vehicle for economic reasons, which is in line with current policy language.
This bill now awaits the signature of Gov. Martin O’Malley. Once signed, WMABA says that the group and other stakeholders will work with the Maryland MVA and state police to define “cosmetic” as it relates to collision repair.
WMABA Immediate Past President Torchy Chandler, owner of Chandler’s Collision in Columbia, Md., commented on the successful efforts of those who participated in the push for this legislation.
“We worked through many obstacles and had many stakeholder meetings to be sure that this legislation would benefit all, but the main focus was always consumers and their interest to retain their vehicles and get them repaired with minimum out-of-pocket expense and headache,” Chandler said. “I believe that because consumer were our focus, we had the least amount of encumbrances for our bill, and thus a victorious outcome.”
