Current through Register Vol. 43, No. 02, November 27, 2024
(1) When a motor vehicle subject to titling
is considered a total loss as defined in §
32-8-87, Code of Ala.
1975, it will be the responsibility of the owner or any person
acquiring ownership (individual, company, or insurance company) to complete
form MVT 41-1 (Application for Salvage Certificate of Title), and deliver it to
the department for processing. Note: Pursuant to §
32-8-87, Code of Ala.
1975, the salvage or total loss must occur in Alabama for an
Alabama salvage certificate of title to be issued. If the salvage or total loss
occurs in another state or other jurisdiction then the salvage laws of that
state of other jurisdiction will apply to the issuance of a salvage certificate
of title.
(a) The individual completing form
MVT 41-1 must verify the Vehicle Identification Number (VIN) and other vehicle
information using information obtained from the outstanding certificate of
title and the vehicle being reported as salvage. If a discrepancy in the VIN is
found, the owner in whose name the title is currently issued must obtain a
corrected certificate of title prior to the submission of the MVT
41-1.
(b) When the owner
(individual or company) making application for a salvage certificate of title
is either uninsured or self-insured, the MVT 41-1 must be completed and signed
by the applicant. The applicant must disclose whether the vehicle is "Junk" or
to be "Sold For Parts Only" on the MVT 41-1. A vehicle which is disclosed as
"Junk" or to be "Sold For Parts Only" cannot be rebuilt and no subsequent
certificate of title will be issued for the vehicle after the salvage
certificate of title is issued with a "Parts Only - Non-Rebuildable" legend.
The owner shall also disclose the city and state where the total loss occurred
and whether the vehicle was declared a total loss due, in part, to water
damage.
(c) When an insurance
company has declared the vehicle to be a total loss, and paid compensation to
the owner, the MVT 41-1 must be completed and signed by an authorized
representative of the insurance company. The authorized representative must
disclose whether the vehicle is "Junk" or to be "Sold For Parts Only" on the
MVT 41-1. A vehicle which is disclosed as "Junk" or to be "Sold For Parts Only"
cannot be rebuilt and no subsequent certificate of title will be issued for the
vehicle after the salvage certificate of title is issued with a "Parts Only -
Non- Rebuildable" legend. The owner shall also disclose the city and state
where the total loss occurred and whether the vehicle was declared a total loss
due, in part, to water damage. The authorized representative must also disclose
whether the insurance company is making application for a salvage certificate
of title, or the owner is retaining the salvage on the vehicle on the MVT
41-1.
(d) When a monetary
settlement is paid on a damaged vehicle and the damage to the vehicle is
greater than or equal to 75 percent of the fair retail value of the vehicle
prior to the damage, the vehicle shall be considered to be a total loss. For
the purpose of determining the fair retail value of a total loss vehicle, at
time of loss, information shall be obtained from a current edition, including
automated data base, of a nationally recognized compilation of retail values,
such as, but not limited to the National Automobile Dealers Association's Used
Car Guide, Southeastern Edition and National Market Reports, Inc., provided the
publication or automated data base presents a fair and representative retail
value of the vehicle within the state of Alabama.
(2) The supporting documents which must
accompany the MVT 41-1 are as follows:
(a)
Outstanding certificate of title, properly assigned if necessary.
(b) Any other documents used to support the
application or transfer of title.
(c) Fee as required in Section
32-8-6, Code of Ala.
1975.
(d) Lien release (if
applicable).
(3) Upon
receipt of a properly completed MVT 41-1 and the supporting documents as
specified in Section 2, the department will issue a salvage certificate of
title. The salvage certificate of title will reflect the legend "Parts Only -
Non-Rebuildable" if such disclosure was made on the MVT 41-1. The salvage
certificate of title will reflect the legend "Flood Vehicle" if such disclosure
was made on the MVT 41-1.
(4) Once
the "Flood Vehicle" legend is issued, on a salvage certificate of title or any
other certificate of title, the legend will be reflected on all subsequent
certificates of title regardless of whether the vehicle is subsequently rebuilt
in this or any other state.
(5)
Insurance companies who acquire ownership of non-total loss vehicles shall
acquire a properly assigned certificate of title from the owner (insured) to
the insurance company, and shall complete the "Affidavit of Acquisition and
Disposition of a Non-Total Loss Vehicle by Insurance Company" (MVT Form 41-5),
and shall complete the "first reassignment of title by a licensed dealer" to
their transferee.
NOTE: Automotive dismantlers and scrap metal
processors acquiring a total loss vehicle for the purpose of recycling into
metallic scrap for remelting purposes are not required to obtain a salvage
certificate of title and must utilize the department's SCRAP portal to report
the vehicle as "junk".
Was previously
810-5-17-.01 and moved to
810-5-75-.57 as per certification filed April 21, 2010; effective May 26,
2010.
Author: Mike Gamble
Statutory Authority:
Code of Ala.
1975, §§
32-8-1 through
32-8-88.
