KRS § 186A.520 — KY Code / Title XVI / Chapter 186A / Section 186A.520
186A.520 Salvage titles -- Conditions for issuance -- Operation of vehicle with salvage title
Status: in_force

186A.520 Salvage titles -- Conditions for issuance -- Operation of vehicle with

salvage title.

(1) Except as provided in KRS 186A.555, a salvage title shall be obtained by the owner

of a motor vehicle that meets the following definition of a salvage vehicle:

(a) A vehicle which has been wrecked, destroyed, or damaged, to the extent that

the total estimated or actual cost of parts and labor to rebuild or reconstruct

the vehicle to its preaccident condition and for legal operation on the roads or

highways, not including the cost of parts and labor to reinstall a deployed

airbag system, exceeds seventy-five percent (75%) of the retail value of the

vehicle, as prescribed by a nationally accepted used car valuation guide or

tool identified under KRS 304.20-110.

(b) The value of repair parts for purposes of this definition shall be determined by

using the current published retail cost of the parts equal in kind and quality to

the parts to be replaced or the actual retail cost of the repair parts used in

repair.

(c) The labor costs of repairs for purposes of this section shall be computed by

using the hourly labor rate and time allocations which are reasonable and

customary in the automobile repair industry in the community where the

repairs are performed.

(d) Airbag reinstallation costs which are excluded from the seventy-five percent

(75%) computation as set forth in paragraph (a) of this subsection shall be

included by an insurer in the computation of the total physical damage

estimate according to the terms and conditions of individual policies, provided

that the total costs payable by an insurer do not exceed the total retail value of

the vehicle.

(2) The owner or an authorized agent of a motor vehicle that meets the definition of a

salvage vehicle as set forth in subsection (1) of this section shall, within fifteen (15)

days from the receipt of all necessary paperwork required by this chapter, submit an

application to the county clerk, on a form prescribed by the Department of Vehicle

Regulation, for a salvage title, accompanied by a properly endorsed certificate of

title and any lien satisfactions, if any appear, as may be required.

(3) The county clerk shall retain a copy of each salvage title application received and

shall forward the original and its supporting documents to the Department of

Vehicle Regulation in a manner similar to that for handling of an application for a

title.

(4) The county clerk shall rely on the information provided by the owner or authorized

agent, including a county of residence designation, on:

(a) Any approved, notarized state form utilized in lien titling or the title transfer

process signed by the owner or authorized agent; and

(b) Any document submitted during the transfer of a salvage vehicle from an

owner to an insurer.

Reliance on the foregoing by the county clerk shall relieve the office of the county

clerk from liability to any third party claiming failure to comply with this section.

(5) The Department of Vehicle Regulation shall process the salvage title application in

a manner similar to that used in processing a title application and the salvage title

shall be delivered in a like manner of a title. Salvage titles shall be construed as

proof of ownership of a vehicle in a state as to be unusable upon the highways of

the Commonwealth.

(6) A vehicle shall not be issued a registration for highway use as long as a salvage title

is in force. The only time a vehicle with a salvage title may be operated upon the

highways of the Commonwealth is when it is in route to or from an inspection by

the certified inspector prior to obtaining a certificate of title after having been

rebuilt as per KRS 186.115.

(7) Notwithstanding the provisions of KRS 369.103, when a salvage vehicle is

transferred from an owner to an insurer, the following shall be exempted from the

requirements of notarization, including exemption from the notarization of

electronic signature requirements of KRS Chapter 423:

(a) The transfer of ownership on the certificate of title;

(b) Any power of attorney required in connection with the transfer of ownership

to the insurer;

(c) Any required odometer disclosure statement;

(d) The application for a salvage certificate of title; and

(e) The transfer of ownership on the salvage certificate of title issued.

(8) Subsections (2) to (5) of this section shall not apply to applications for salvage title

using the electronic title application and registration system established under KRS

186A.017.