Passenger Vehicle Loss Disclosure Act (S. 3707)
U.S. Sen. Trent Lott, R-Miss., has introduced legislation that would provide information to consumers regarding vehicles declared "total loss" by insurance companies. Lott is a member of the Senate Commerce, Science and Transportation Committee, which will have jurisdiction for the legislation.
The Passenger Vehicle Loss Disclosure Act (S. 3707) would require insurance companies to publicly disclose the vehicle identification number (VIN), the date the vehicle is declared "total loss," the odometer reading on the date of the declaration of total loss, and a statement explaining why the vehicle is declared total loss. The U.S. Secretary of Transportation will regulate and require that all insurers and self-insurers disclose this information to the public in a "commercially reasonable, electronically accessible manner."
The information will be available to consumers via the Internet and e-mail. Lott said, "Insurance companies will be required to make this information available for purchase by commercial companies that package and sell information to consumers, such as Web sites offering vehicle history reports."
S. 3707 is especially important post-Hurricane Katrina. Hundreds of thousands of vehicles damaged by the hurricane could be sold across the country as used cars that have been cosmetically altered to appear almost new. Rachel Weintraub, Consumer Federation of America, testified before a House Energy and Commerce Subcommittee stating, "The economic impact is staggering. Title-related car fraud costs consumers up to an estimated $11.3 billion each year."
UPDATE: ASA participated in a total loss vehicle press conference on Dec. 7, 2006. The press conference was held to inform the media and public about the risks associated with flooded and wrecked vehicles.
Click here to read a letter sent to Congress from the Salvage Auto Fraud Reform Coalition (SAFR). ASA is a member of the coalition.
