PIFC TESTIFIES ON SALVAGED VEHICLES

The California Senate Insurance Committee convened a hearing with member companies of the Personal Insurance Federation of California (PIFC) to discuss how auto insurers are complying fully with state vehicle code laws dealing with total loss salvage vehicles. Senator Jackie Speier, chairperson of the committee, called the hearing to gather information from insurers to help committee members decide if the current system of selling salvage vehicles sufficiently protects insureds as well as consumers who ultimately buy the vehicles after they have been repaired. PIFC insurance company members from State Farm Insurance Companies, Farmers Insurance Group and 21st Century Insurance Companies testified that they write insurance on approximately 50 percent of all automobiles in the state and follow the letter of the law when it comes to salvage vehicles. Companies are responsible to report any vehicle deemed a total loss salvage to the Department of Motor Vehicles (DMV) within ten days. Additionally, California Vehicle Code states that any salvaged vehicle must be issued a salvage certificate by the DMV that affirms the vehicle in question has been declared a total loss salvage vehicle. The certificate and all of its pertaining information must be disclosed to any potential buyers of the vehicle.

Topics California Auto