Friday, December 20, 2013

California Salvage Vehicle Regulations

California Salvage Vehicle Regulations

For the experienced mechanic or auto restoration enthusiast, bargains and challenges alike can be found at the junkyard in the form of salvage vehicles. The state of California has specific regulations governing the sale and registration of these vehicles.

Definition

    The state of California defines a salvage vehicle as one that has sustained damage from an accident or other cause (fire, smoke or flood) to such an extent that an insurance company has decided making repairs is not economical and will not fix the car.

Salvage classification

    If an insurance company settles with the owner of a vehicle deemed a total loss, the company must obtain a salvage certificate for the automobile. If an owner retains possession of the vehicle as part of a settlement, the insurance company is required to notify the state Department of Motor Vehicles, and the owner is required to obtain his own certificate of salvage within 10 days of the settlement.

Fee refund

    Once a car is classified as a total loss, an owner who does not intend to repair the vehicle but retains possession is eligible for a refund of a portion of the vehicle registration fees previously paid to the state. Fees returned are one-twelfth the annual fee multiplied by the number of full months remaining until the cars current registration is due to expire. Drivers who wrecked their vehicles and were cited for driving under the influence are not eligible to receive these fees back.

Disclosure

    State law requires owners of salvage vehicles to notify the purchaser, at or before the time of sale, of the vehicles total loss salvage status. If a seller does not make this disclosure, she can be sued.

Re-registration

    If a vehicle previously designated as "salvage" is privately repaired and becomes operational, an owner can apply to re-register a car as a "revived salvage vehicle." The automobile is subject to a safety inspection by a California Highway Patrol officer, an emissions test performed at a regulated inspection station, and tests to ensure the cars brakes and lights are fully functional. Those wishing to re-register a previously salvaged vehicle must provide proof of ownership. The state of California will not consider re-registering cars using out-of-state salvage certificates.

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