Maryland Gov. Martin O’Malley has signed H.B. 1199, which curtails marketplace issues resulting from the state’s 75 percent salvage vehicle threshold by adding exclusions for "cosmetic damage" and "the cost of towing, storage or vehicle rental."
The Washington Metropolitan Auto Body Association (WMABA) says it played a pivotal role in suggesting and producing the legislation, which will take effect Oct. 1.
The bill 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 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.
WMABA and other stakeholders will work in the coming weeks with the Maryland Motor Vehicle Association and State Police to define "cosmetic" as it relates to collision repair.
More information:
Maryland Salvage Bill Awaits Governor’s Signature