To:            Missouri Property & Casualty Insurers

From:       Doug Ommen, Director

Re:           Motor Vehicle Salvage Title Procedure

Date:        August 20, 2007

Effective August 28, 2007, Senate Bill 82 will modify Missouri's definition of a salvage motor vehicle in 301.010 RSMo. The definition is modified to include the following:

  • Vehicles that are less than seven years old at the time of damage and the total cost to repair the damage exceeds 80 percent of the fair market value of the vehicle prior to the time the vehicle was damaged.

  • Vehicles that have been declared salvage by an insurance company as a result of a claim.

  • When determining if a vehicle is salvage, the total cost of repairs shall not include the cost of repairing hail damage.

Senate Bill 82 also modifies 301.227 RSMo to require purchasers to apply for salvage title on vehicles that are sold for salvage, dismantling or rebuilding if the vehicle is less than seven years old at the time of purchase.  On vehicles that are seven model years old or older at the time of purchase, the application for a salvage title shall be optional.

What does this change mean for insurance companies?

Insurance companies will be required to obtain salvage titles on vehicles that meet the definition of salvage when the vehicle is less than seven years old at the time of purchase. All other requests for salvage title shall be optional.

For example, all 2001 and newer model year vehicles that meet the definition of salvage and purchased by an insurance company in calendar year 2007 must obtain a salvage certificate of title.

Vehicles with no resale value except as a source of parts or scrap may obtain a junking certificate in lieu of a salvage title.

The Missouri Department of Revenue will implement this change with applications for title received on August 28, 2007. If the insurance company notified DOR of an owner retained salvage vehicle, prior to August 28, but the owner does not apply for title until August 28 or after, the new definition will apply in determining if the vehicle qualifies for a salvage title.

Are the current forms used by insurance companies being revised?

Yes, the following forms are being revised to include the new model year requirement and damage percent and can be obtained on DOR's website at www.dor.mo.gov/mvdl/motorv/forms. Insurance companies may continue to print their own forms provided they contain the same information as DOR.

  • Notice of Vehicle Titling Requirements - Form 5043
  • Certification by Insurance Company of Vehicle Damage - Form 5042

Are there other changes made by Senate Bill 82 that insurance companies need to know?

Yes, Senate Bill 82 also eliminates the completion of a Notice of Sale, Form 5049, when a transfer of ownership of a motor vehicle or trailer is to an insurance company due to a theft or casualty loss.

How can I obtain a copy of Senate Bill 82?

You may view and print a copy of Senate Bill 82 from the following website www.senate.mo.gov/07info/pdf-bill/tat/SB82.pdf.

Who do I contact if I have additional questions regarding this legislation?

You may contact DOR's Motor Vehicle Bureau Customer Service Call Center by calling (573) 751-4509 or by email at www.dor.mo.gov/mvdl