What is NMVTIS?
Jan | 2 | 11
Created by the Anti-Car Theft Act of 1992, the National Motor Vehicle Title Information System (NMVTIS) is required to include data from all state motor vehicle agencies (DMV), including brand information that describes a vehicle’s prior use and condition. In addition, NMVTIS is the only vehicle history database in the nation to which all states, insurance carriers, and junk and salvage yards are required by federal law to report. Read More.
NMVTIS is important to the used vehicle consumer — Vehicle fraud is a profitable business and NMVTIS information can help the consumer identify fraud before they make a bad purchase decision (statistics from the American Association of Motor Vehicle Administrators (AAMVA)).
- In 2005, some 570,000 vehicles were affected by hurricanes – These vehicles are perfect targets for vehicle title fraud (title washing).
- 1.3 million vehicles are stolen each year – These vehicles are perfect targets for VIN cloning and false titles.
- Auto theft alone costs consumers and insurance companies $8 billion per year.
- Only 63% of vehicles reported stolen are recovered – If it is recovered, the unsuspecting buyer of the stolen vehicle could be out the vehicle and their money.
- “VIN Cloning” is a growing trend – NMVTIS data sources help the consumer identify VIN Cloning red flags (i.e. VIN showed up at a Junk or Salvage yard).
NMVTIS Background — The Anti Car Theft Act of 1992 was enacted to deter trafficking in stolen vehicles by strengthening law enforcement against auto theft (Title I), combating automobile title fraud (Title II), preventing “chop shop” related thefts (Title III), and inspecting exports for stolen vehicles (Title IV). Title II of the Act required the U.S. Department of Transportation (DOT) to implement a National Motor Vehicle Title Information System (NMVTIS). The Act specifies that the information within NMVTIS shall be available to jurisdictions; federal, state and local law enforcement officials; insurance carriers; and other prospective purchasers (e.g., individuals, auction companies, and used car dealers). The Anti Car Theft Improvements Act of 1996 was signed into law on July 2, 1996. It amends the Anti Car Theft Act of 1992 to give the Department of Justice the responsibility for the information system.