Total Loss Vehicle Amendment Would Allow Insurers to Make Loss Determination - BodyShop Business
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Total Loss Vehicle Amendment Would Allow Insurers to Make Loss Determination

Proposed amendment to Florida bill would eliminate current 80-percent total loss threshold.

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An amendment that may be offered to Florida House Bill 1101 would eliminate the current 80-percent threshold for a total-loss vehicle to receive a certificate of destruction. The amendment would allow insurers to determine whether the vehicle receives a certificate of destruction.

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The Automotive Service Association (ASA) says it opposes the amendment because it would allow potentially unsafe vehicles to be branded as "repairable" and put back on the roads.

ASA says the amendment also would:

• Allow insurance companies to determine whether or not a vehicle should obtain a certificate of destruction. Without the current 80-percent threshold that requires a total-loss vehicle to obtain a certificate of destruction, vehicles that should not be repaired can be returned to the roads, ASA says.

• Create dangers for consumers who would be unable to identify the level of damage that a vehicle has sustained since the vehicle branding will not reflect the actual designation of the vehicle as "unrebuildable."

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• Permit unsafe vehicles that are supposed to be dismantled and crushed by automotive recyclers to be sold as "repairable," creating a situation where the source of undamaged recycled parts will be seriously diminished and local jobs compromised.

• Increase the risk for criminal activity as vehicles that are badly damaged would be allowed to obtain a clean title and sold to unsuspecting purchasers.


More information:

View the full text of the bill at ASA’s legislative website

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