Over 28.1 million salvage or total loss records have been reported to NMVTIS.  Over 9,000 auto recyclers, junk yards, salvage yards, and insurance carriers in the U.S. are reporting, or registered to report, to NMVTIS.

Below are the legal reporting requirements for each of the NMVTIS reporting types. If you want some really fun reading material, here are the NMVTIS Final Regulations.

1. Auto Recyclers, Junk and Salvage Yards — Effective March 31, 2009

NMVTIS serves as a repository of information related to vehicles that have been in the possession of auto recyclers, junk yards and salvage yards. This repository is then used by states and consumers to ensure that junk or salvage vehicles are not later re-sold and ensures that the VINs from destroyed vehicles can never be used for a stolen auto (see www.nicb.org). Thieves use the VINs from destroyed vehicles because they know that the true VIN will never appear again on the road and because they know that if the VINs are reported to state motor vehicle titling agencies, there is a strong likelihood that the reporting may not result in a flagged or retired record (also known as a “kill title” report). Because NMVTIS reporting is mandated and because consumers and states can access the information, the system makes it much easier to detect attempts to use VINs from destroyed or salvage vehicles in cloning operations.

By no later than March 31, 2009, and continuing on a monthly basis as designated by the operator, any individual or entity engaged in the business of operating a junk yard or salvage yard within the United States shall provide any inventory of all junk automobiles or salvage automobiles obtained in whole or in part by the entity in the prior month.  They must include a statement of whether the automobile was crushed or disposed of, for sale or other purposes, and if the vehicle is intended for export out of the United States.  Junk and salvage yards may be required to file an update or supplemental report of final disposition of any automobile where final disposition information was not available at the time of the initial report filing, or if their actual disposition of the automobile differs from what was initially reported.  Types of entities included in this category of reporting include scrap vehicle shredders and scrap metal processors, as well as “pull- or pick-apart yards,” salvage pools, salvage auctions, and other types of auctions, businesses, and individuals that handle salvage vehicles.

Exceptions to the reporting requirements:

• Auto recyclers and junk and salvage yards are not required to report any vehicle that is determined not to meet the definition of salvage or junk after a good-faith physical and value appraisal conducted by qualified appraisal personnel, entirely independent of any other persons or entities.

• Auto recyclers and junk and salvage yards that handle fewer than five vehicles per year that are determined to be salvage (including total loss) or junk are not required to report to NMVTIS consistent with federal legal requirements for automobile dealers.

2. Insurance Carriers and Self-Insurers — Effective March 31, 2009

By no later than March 31, 2009, Insurance companies and certain self insurers must report monthly to NMVTIS on the junk and salvage automobiles they obtain that are of the current model year or any of the four prior model years. The Anti-Car Theft Act defines a salvage automobile as “an automobile that is damaged by collision, fire, flood, accident, trespass, or other event, to the extent that its fair salvage value plus the cost of repairing the automobile for legal operation on public streets, roads, and highways would be more than the fair market value of the automobile immediately before the event that caused the damage.” The Department of Justice has also determined that this definition includes all automobiles found to be a total loss under the laws of the applicable state, or designated as a total loss by the insurance carrier under the terms of its policies, regardless of whether an insurance carrier retitles the vehicle into its name or allows the owner to retain the vehicle. The determination that “total loss” is included in the definition of salvage is to ensure that the reporting of salvage automobiles is comprehensive.

In addition, although not specifically required by the Anti-Car Theft Act, the Department of Justice strongly encourages insurance carriers to provide information on other motor vehicles, including older model automobiles, and other information relevant to a motor vehicle’s title. The reporting of this information by insurance carriers will help reduce instances in which thieves use the VINs of junk or salvage motor vehicles on stolen motor vehicles and will assist in preventing and eliminating fraud.

3. State Motor Vehicle Title Agencies (DMV) — Effective January 1, 2010

By no later than January 1, 2010, each state must provide at a frequency of once every 24 hours, titling information for all automobiles maintained by the state.  The titling information provided to NMVTIS must include any description of the automobile included on the certificate of title (including any and all brands associated with such vehicle).