Does the Insurance Company Have to Report a Total Loss or Nonrepairable Vehicle?
Yes. An insurance company that makes a settlement and takes possession of a total loss salvage or nonrepairable vehicle must report and obtain either a Salvage Certificate or Nonrepairable Vehicle Certificate within 10 days from the date of the settlement (CVC §§11515 & 11515.2).
If the vehicle owner retains possession of the vehicle, the insurance company must notify DMV of that retention and inform the owner of his/her responsibility to obtain a Salvage Certificate or Nonrepairable Vehicle Certificate within 10 days from the date of the settlement.
Is a Total Loss Salvage Vehicle Disclosure Required?
Yes. The seller who transfers the ownership of a total loss salvage vehicle must disclose to the purchaser at, or prior to, the time of sale, that the vehicle has been declared a total loss salvage vehicle. A seller who fails to make the disclosure may be subject to a civil suit or penalty (CVC §11515(h)(1)).
