Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-08 - Vehicle Services Division
Chapter 1320-08-05 - Dismantled Vehicles
Section 1320-08-05-.02 - PERMIT TO DISMANTLE

(1) Each dealer or person, before dismantling or wrecking any motor vehicle, shall apply to the Department of Revenue for a permit to dismantle on a form to be supplied by the Commissioner. This application shall be supported by the motor vehicle certificate of title properly assigned to the applicant or, if the vehicle was owned by a resident of a non-title state, by a bill of sale or evidence of current registration. The application shall include an odometer statement, if applicable. The application shall indicate whether the vehicle was subject to collision, fire, water damage and/or other damage. In the case of water damage, the application shall indicate the level of water in the vehicle. Upon receipt of the proper documentation, a permit authorizing the dealer or person to dismantle or wreck the motor vehicle shall be issued.

(2) An insurance company which obtains title to a motor vehicle as a result of paying a total loss claim resulting from collision, fire or water damage shall obtain a permit to dismantle for such vehicle. The provisions of this paragraph shall not apply to vehicles ten (10) years old or older with a value of one thousand five hundred dollars ($1,500) or less or with damage which requires the replacement of four (4) or fewer minor components. Transfer of ownership of these vehicles shall be made by endorsement on the certificate of title. When transferring ownership of such vehicle, the insurance company shall indicate on the title that the vehicle is being transferred pursuant to T.C.A. § 55-3-206. The insurance company shall also indicate whether the vehicle was subject to collision, fire, water and/or other damage. In the case of water damage, the insurance company shall indicate the level of water in the vehicle.