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Bill to address salvage-title processes for insurers and vehicle auction firms laid over
Summary
House File 1406 would allow insurance carriers to apply for titles when a claim is settled but original-owner paperwork is not available, and create a process for auction companies to obtain titles for abandoned salvage vehicles; the committee laid the bill over after adopting a technical amendment.
ST. PAUL — House File 1406, authored by Representative Anderson and sponsored in committee by industry representative Todd Hill, would create two administrative processes to address problems that insurance companies and vehicle salvage auction firms encounter with total-loss and abandoned vehicles.
Todd Hill, representing Copart and Hill Capital Strategies, told the committee that Section 1 would allow an insurance carrier to apply for a title from the Department of Vehicle Services (DVS) for a vehicle declared a total loss after a claim has been settled when the insurer cannot obtain paperwork from the vehicle’s owner. Section 2 would establish notice and transfer procedures for salvage auction companies when a vehicle is abandoned at their site and the owner does not claim it, enabling the company to obtain title and dispose of the vehicle rather than leaving it indefinitely on the lot.
Hill said the bill would align Minnesota with roughly 41 other states and neighboring jurisdictions that already permit similar processes. The committee adopted a technical amendment requested by Driver and Vehicle Services staff and laid the bill over.
Why it matters: Insurance carriers and salvage-auction operators said the bill would reduce administrative burdens and allow responsible disposal of unclaimed salvage vehicles; proponents said the change is common in other states and would streamline operations.
Action: HF1406, as amended, was laid over for further consideration.
