Hail Salvage by benbenzhou


									Division of Vehicles                                                                   phone: 785-296-3601
Titles & Registrations                                                                   fax: 785-291-3755
915 SW Harrison St.                                                                     www.ksrevenue.org
Topeka, KS 66612

Nick Jordan, Secretary                                                         Sam Brownback, Governor
Donna Shelite, Director

                                           Memorandum # 11-005

Date:                    June 8, 2011

To:                      All County Treasurers
                         T&R Staff

From:                    Debra Wiley, Bureau Manager, Titles & Registrations

Subject:                 Salvage Title Requirements for Hail/Windstorm Damage

With the many recent storms, we have received an increase in calls about
whether vehicles are required to obtain a salvage title if the vehicle sustains
hail damage. Many calls have come from the county offices as well as
individual customers. This memo is provided for guidance to all our business

The applicable statutory reference is found at K.S.A. 8-197(b)(2) "Salvage vehicle"
(A) Any motor vehicle, other than a late model vehicle, which is of a type required to be
registered in this state, but which cannot be registered because it has been wrecked or damaged
to the extent that: The equipment required by state statute on any such vehicle used on the
highways of this state is not present or is not in good condition or proper adjustment, as
prescribed by state statute or any rules and regulations adopted pursuant thereto, or such vehicle
is in an inoperable condition or a condition that would render the operation thereof on the
highways of this state a hazard to the public safety; and in either event, such vehicle would
require substantial repairs to rebuild or restore such vehicle to a condition which will permit the
registration thereof;
(B) a late model vehicle which is of a type required to be registered in this state and which has
been wrecked or damaged to the extent that the total cost of repair is 75% or more of the fair
market value of the motor vehicle immediately preceding the time it was wrecked or damaged
and such condition was not merely exterior cosmetic damage to such vehicle as a result of
windstorm or hail; or (color, italic and underline added)
(b)(6) "late model vehicle" means any motor vehicle which has a manufacturer's model year
designation of or later than the year in which the vehicle was wrecked or damaged or any of the
six preceding years
For a late model vehicle (vehicles older than 7 model years) the key is the
word "merely". A vehicle with ONLY exterior cosmetic damage from a
windstorm or hail does not have to be designated as salvage. A vehicle with
exterior cosmetic damage from a windstorm or hail AND other damage not
caused by the windstorm or hail CAN BE designed as salvage.
This statutory definition is the point where there is no question of "may", it
"must", regardless if claimant and/or insurance company agree to the
designation.   A vehicle with merely exterior cosmetic damage from a
windstorm or hail may be designed as salvage "if" the insurance company
and claimant agree, but it does not have to be salvage if they both do not
If the vehicle is 8 model years old or older, it's completely up to the claimant
and insurance company. Wind and/or hail damage normally does not cause
a vehicle to be unsafe to drive. Replacing broken glasses would not meet
"substantial repairs" in subsection (A) above.

Questions relating to this policy should be referred to Debra Wiley at
debra.wiley@kdor.ks.gov or by calling 785.296.2242.

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