Fifteen months following the marketplace enactment of the 75 percent salvage threshold - SB 568, the Washington Metropolitan Auto Body Association (WMABA) has successfully moved a bill correcting many of the marketplace issues through both the House and the Senate during the recent 2010 legislative session.
This bill (HB 1199), which adds an exclusion to the threshold for "cosmetic damage" and "the cost of towing, storage or vehicle rental," was successfully passed with majority support by stakeholders, as well as legislators.
The bill also includes an amendment to current law which [salvage] brands ALL vehicles that are total-lossed by an insurer. This protects the secondary vehicle owner from unknowingly purchasing a previously totaled vehicle, as well as removing the incentive to prematurely total-loss a vehicle because of higher salvage value. The last portion of the bill gives the insurer the reserved right to make a decision to total-loss the vehicle for economic reasons, which is in line with current policy language.
This bill, having successfully passed through the House and Senate, is now on the desk of Gov. O'Malley awaiting his signature. Once signed, the WMABA and other stakeholders will work with the Maryland MVA and State Police to define "Cosmetic" as it relates to collision repair. Updates on the finality of the process will be sent as soon as they become available.
WMABA Immediate Past President and Owner of Chandler's Collision in Columbia, Maryland, Torchy Chandler commented on the triumphant efforts of those who participated in the movement for this legislation. "We have worked through many obstacles and had many stakeholder meetings to be sure that this legislation will benefit all, but the main focus has always been the consumer and their interest to retain their vehicle and get it repaired with minimum out of pocket expense and headache," Torchy says. "I believe that because the consumer was our focus, we had the least amount of encumbrances for our bill, and thus a victorious outcome."
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