What You Should Know About Oklahoma’s Bailout Title Law

Salvage title

Oklahoma salvage title laws are administered through the Oklahoma State Board of Revenue. Compared to other states, Oklahoma’s use of auto rescue headline laws is pretty good for consumers. Insurance companies may not like them very much. A championship rebuilt in Oklahoma could also be a good value.

The best aspect of the law is to state that the threshold for a vehicle to be salvaged is low: if the cost of a road vehicle that is 10 years old or newer to manufacture exceeds 60% of its fair market value at the time of its loss.

In almost all cases across the country, any vehicle with a sustained damage value of 75% or more of its value will receive a salvage title. State-by-state requirements will vary. In Florida, a car must be damaged to 80% of its value before an accident occurs. Minnesota vehicles are considered salvage vehicles when they are declared a “repairable total loss” by insurance companies, valued at least $5,000 or less than six years before the damage occurs.

Salvage titles in Oklahoma

Here are the titles in the official language of Oklahoma ( bold emphasis comes from state statutes ):

definition

(E) Title of rescue when damage is greater than sixty percent (60%). If the owner indicates that the vehicle has been damaged and the cost of repairing it to road conditions exceeds sixty percent (60%) of its fair market value at the time of the loss, the vehicle will be deemed to have been entered as if it were entered under the salvage title Oklahoma.

This applies whether the damage is due to theft, collision, or another event.

710:60-5-53. salvage title

(a) Identify rescue vehicles. A salvage vehicle is a ten (10) year old model with a dozen (10) damaged vehicles due to a collision or other accident that costs more than sixty percent (60 percent) of the fair market cost of repairing the vehicle to operate safely on the highway ) value at the time of loss.

(b) Determining classification as a salvage vehicle. To determine the 10-year model age limit, subtract 9 from the latest manufacturer’s model currently on sale. July 1 is the generally accepted date for new models to go on sale. For example, before July 1, 2006, the newest manufacturer that sold the model was the 2006 model. Therefore, within one (1) year ending June 30, 2006 (July 1-June 30, 2005), a 10-year-old vehicle would be a 1997 (2006-2006) model. During this period, 1996 and older models are exempt from salvage requirements. Beginning July 1, 2006, the 2007 model officially went on sale (as per this guide), resulting in the 1997 model being exempt from salvage requirements. The formula used to determine the age of the vehicle model applies to all decisions regarding salvage and rebuilding of vehicles.

(c) Change the classification. Vehicles over 10 years old can enter or exit the salvage at any time. No inspection is required to save these vehicles from salvage.

(d) Non-State Relief Title. Vehicles over 10 years old entering Oklahoma and receiving a non-state salvage title may receive either a salvage title or a standard (green) title with a salvage date listed.

(e) Notice of Insurance Company. The insurance company pays for vehicle damage where the cost of repairing the vehicle to operate safely on the highway exceeds 60% of its market value or pays a flood-damaged vehicle claim as defined in 47 OS ยง1105 Notifies the owner to give a title to Oklahoma Tax Commission or Motor License Agent so that it can be replaced with a bailout title. The Motor Division will also be notified by the insurance company. The notice shall include the estimated total damage percentage of the actual cash value made by the insurance company to repair the safe operating vehicle on the highway.

(f) Transfer ownership of the insurance business to the insurance company to cover all losses due to theft; cancel the salvage notation. Any vehicle age 7 or older for which the insurer has paid for the full loss of the theft must be transferred to the insurer through a salvage title.

However, the statute states that if the vehicle is recovered and suffers damage to less than 60% of the vehicle’s value, the salvage sign may be removed. This must be demonstrated in a letter on the insurance company’s letterhead.

(g) License plates not affected by salvage classification; current registration is usually required. The license plate of the vehicle entering the rescue state does not need to be returned. However, registration on a vehicle entering salvage must be current unless it is titled by a salvage dealer.

(h) Flood Damaged Brands. A salvage or reconstruction vehicle that has been damaged by flooding, or that has been submerged on or above the vehicle’s dashboard for a loss amount paid by an insurance company, should be marked with a “Flood Damaged” sign facing the Oklahoma State Champion.

(i) Multinational Motor Vehicle Rescue Processing Centers. Insurance companies licensed by the Oklahoma Department of Insurance and maintaining a Multinational Motor Vehicle Rescue Processing Center in this state may issue Oklahoma Original Rescue titles on stolen vehicles that are not recovered without the need for a visual inspection Vehicle Identification Number (VIN) or odometer.

For an eligible vehicle, the following conditions must be met:

  1. The vehicle has been stolen and has not been recovered;
  2. The non-state name assigned to the qualifying insurance company must be submitted. The Oklahoma State Championship title may not be awarded if the existing Oklahoma State Championship record file reflects a VIN check “holding”; and,
  3. One of the following documents proving the vehicle was stolen must be submitted: (A) a report of the stolen vehicle; (B) proof of damage from the insurer; or (C) a statement from the insurance company verifying that the vehicle was stolen and has not been recovered.

rebuilt title

In Oklahoma, you’ll also come across something called a rebuilt title. This specifically refers to vehicles that once held the title of salvage but are now fixed in road conditions. It also means that the car has undergone a rebuilt vehicle inspection before receiving the designation. At least in Oklahoma, vehicles with this designation are much better than those sold as rescue vehicles because repairs have been done on those vehicles and inspected by trained officers.

710:60-5-54. rebuilt title

(a) Rescue vehicles of ten (10) years of age or older that have been repaired to road conditions must be inspected by a licensed motor vehicle dealer before being put into service.

(b) Owners must complete and submit an Application for Reconstructed Vehicle Inspection (OTC Form 788-B) to a motor vehicle license agent.

(c) If an assigned serial number is required, the owner must contact the Oklahoma State Tax Commission, Department of Motor Vehicles, Title Division.

(d) The assigned serial number must be permanently affixed to the vehicle before performing a rebuild inspection.

(e) The Motor License Agent will designate the inspection date, time, and location within ten (10) business days of receipt of the request.

(f) If the inspection location is not the rebuilder’s place of business, the electric licensing agent shall issue a “Travel and Inspection Permit” (OTC Form 788-C) authorizing the applicant to operate the vehicle en route to and from the inspected location. This form does not relieve the operator of the vehicle under the Oklahoma fiscal responsibility law, nor does it allow the vehicle to be operated without a current safety inspection.

(g) The inspection is performed by a motor vehicle licensing agent or a person employed by a motor vehicle licensing agent.

(h) All vehicle damage shall be repaired before the inspection.

(i) A rebuilt vehicle inspection shall include all of the following:

  1. Compare the Vehicle Identification Number (VIN) to the number recorded on the title record.
  2. Check vehicle identification numbers and license plate numbers to detect possible alterations or other fraudulent behavior.
  3. Explain the VIN recorded on the title document to ensure it accurately describes the car in question. Electric licensing agents should use the VIN Analysis System (VINA) incorporated into the motor vehicle computer system to verify that the VIN accurately describes the motor vehicle.
  4. Check the vehicle’s odometer to detect rollbacks or changes.
  5. (j) The owner of the vehicle shall present to the motor vehicle licensing agent:
    1. bailout title;
    2. Receipt for all parts on the vehicle. The agent shall verify the parts used and return the receipt to the owner; and,
  6. Proof of current liability insurance. “No Liability Insurance Liability Guarantee” (OTC Form 797) is not acceptable.
  7. (k) The Motor License Agent or Employee will fully complete the Rebuild Vehicle Inspection (OTC Form 788-A). The entire inspection will be completed even if the vehicle fails one or more parts. If the vehicle fails the rebuild inspection, the electric license agent should contact the Department of Motor Vehicles to correct the vehicle markings to ensure a “stop sign” is placed on the vehicle record.
  8. (l) If the vehicle fails the rebuild check:
    1. Title to Oklahoma Reconstruction will not be issued unless authorized in writing by Oklahoma law enforcement agencies.
  9. Original (top) copy of OTC Form 788-A to the vehicle owner.
  10. (m) If a vehicle that has previously failed a rebuild inspection receives written authorization from Oklahoma law enforcement to issue a rebuild warrant, the owner must:
    1. Return to the same licensing agency that performed the rebuild check;
    2. Submit an original (top) copy of OTC Form 788-A; and
  11. Submit a letter from Oklahoma Law Enforcement Authorizing Restoration of Title Issue.
  12. (n) The Motor Licensing Agent must contact the Department of Motor Vehicles Division of Titles to authorize the issue of the title of the rebuilt vehicle and the removal of the “stop sign” from the vehicle record.
  13. (o) If the vehicle passes inspection, the original (top) copy of OTC Form 788-A will be attached as a supporting document to the Re-Ownership Receipt filed in the Auto License Agent Semi-Monthly Report.
  14. (p) The second (bottom) copy of OTC Market Form 788-A is retained by the motor vehicle licensing agent, whether the vehicle is eligible or not.
  15. (q) Reconstruction Inspection Fees are payable only when Reconstruction Title is issued. If the owner refuses title and registers the vehicle when the inspection is complete and passes the inspection agency, the electric license agent may not issue the original (top) copy of OTC Form 788-A to the owner.
    1. (r) The Motor License Agent may not be liable for any damage to the vehicle that occurs during the inspection, but the Motor License Agent may be liable for damage to the vehicle due to negligent acts or omissions during the inspection.
By aamritri

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