- As of June 2011, Florida insurance companies may declare vehicles a total loss if the cost of repairing the vehicle is 80 percent or more of the total cost of replacing it. Thus, if your vehicle is worth $10,000 but it would cost $8,000 or more to repair the vehicle after an accident, the insurance company declares your vehicle a total loss and you must get a salvage title before either repairing the vehicle yourself or giving it to the salvage yard.
- If your vehicle is declared a total loss, you must purchase a salvage title in Florida. To do so, bring your original title and your application for salvage title to the local Department of Motor Vehicles office. Your insurance company may fill out the application for you, listing the vehicle's total value and the cost of repairs. You must sign the application and attach it to your title before turning your original title over to the DMV.
- Some vehicles sustain significant damage in accidents but do not meet the 80 percent rule. If you choose to keep such a vehicle, Florida may issue you a salvage title saying that the vehicle was damaged and rebuilt. As of June 2011, if you sell such a vehicle, you must inform consumers that the vehicle was rebuilt following an accident. Under these circumstances, the DMV gives you a decal that you must put in the rear window to signify that the vehicle has been rebuilt.
- Florida gives consumers the right to order a vehicle history report when purchasing used vehicles. The vehicle history report will indicate whether the vehicle was totaled in an accident and whether the title is a salvage title rather than an original title. This report also informs consumers if the vehicle was rebuilt from salvage and also gives the correct odometer reading. If any information in the vehicle history report doesn't match up with a seller's claims, be wary of purchasing it.
previous post