ASA participates in total loss press conference

WASHINGTON, D.C. — The Automotive Service Association (ASA) participated in a total loss vehicle press conference Dec. 7 on Capitol Hill. The press conference was held to inform the media and public about the risks associated with flooded and wrecked vehicles.

Sen. Trent Lott (R-Miss.) is the sponsor of total loss legislation in the Senate. S. 3707 would provide information to consumers regarding vehicles declared a “total loss” by insurance companies. Lott is a member of the Senate Commerce, Science and Transportation Committee, which will have jurisdiction for the legislation.

Rep. Cliff Stearns (R-Fla.) also attended to speak about his legislation, H.R. 6093. Stearns is chairman of the Commerce, Trade & Consumer Protection Subcommittee. His legislation calls for the National Highway Traffic Safety Administration to require the disclosure of all information pertaining to the fair market value and safety of damaged vehicles. 

The ASA supports both S. 3707 and H.R. 6093. These bills are especially important post-Hurricane Katrina. Hundreds of thousands of vehicles damaged by the hurricane could be sold across the country as used cars that have been cosmetically altered to appear almost new. Rachel Weintraub of the Consumer Federation of America testified before a House Energy and Commerce Subcommittee, saying: “The economic impact is staggering: title-related car fraud costs consumers up to an estimated $11.3 billion each year.”

Bob Redding, ASA’s Washington, D.C., representative said: “These flood vehicles end up in our repair facilities. Vehicle owners bring these flood cars to our shops with very little information. These repairs may be minor or some major. Our repair shop owners report that premature electrical component and connector failures are potential problems with these vehicles. Airbag restraint systems alone require much expertise. Without the knowledge that these vehicles have been submerged, repairers may miss a critical piece of information – such as the airbag system – in their evaluation of the vehicle repair. The only true test for that airbag will be a vehicle collision. Mechanical component failures due to corrosion or disposed lubricants from water are also an issue. Braking systems could be severely impacted.

“I do want to bring to your attention one other important area for ASA. In addition to the safety of the consumer, there is concern about additional undisclosed problems with these flood vehicles. Pathogens, including blood-borne pathogens from water immersion and mold, may pose a health threat to the repair technician. The ability to identify these vehicles could save consumers repair expense, prevent injury or even loss of life as well as prevent long-term economic costs to consumers, repairers and insurers.”

To view the full text of both H.R. 6093 and S. 3707, or to send a letter to your senators asking them to support total loss legislation, visit ASA’s legislative Web site at www.TakingTheHill.com.