Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-5-75 - TITLE PROCEDURE › Section 810-5-75-.57 - Application For Salvage Certificate Of Title And Insurance Non-Total Loss Assignment Of Certificate Of Title

Current through Register Vol. 42, No. 9, June 28, 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.