CAL LEG Salvage of Total Loss Vehicle


On Sep. 11, CAL LEG passed bill on salvage certificates for total loss.


  • CAL LEG passed bill AB 1901 on salvage certificate or nonrepairable vehicle certificate.
  • Amendments to CAL LEG 5-3-11540 and adds CAL LEG 5-3-11515.3 to Vehicle Code.
  • Creates process for a vehicle to be deemed abandoned and for a salvage pool to gain salvage certificate/nonrepairable vehicle certificate for possession of total loss vehicle.
  • Bill Provisions
  • The bill authorizes a salvage pool to gain a salvage certificate or nonrepairable vehicle certificate for a vehicle of total loss in its possession under certain circumstances.
  • Including if insurance company requests a salvage pool authorized by insurance company or occupational licensee of DMV to take possession of total loss claim vehicle.
  • When the insurance company does not take ownership of the vehicle, releasing the vehicle to the registered owner and legal owner or lienholder of the vehicle.
  • Or if the salvage pool or occupational licensee of DMV sends 2 notices by certified mail to the registered legal owner and any lienholder of the vehicle to pick up the vehicle.
  • 2 notices re number of days to pick up the vehicle and must be sent 2 weeks apart.
  • Notice informs they have to pick up the vehicle or that it will be deemed abandoned.
  • Bill provides that if the registered owner does not pick up the vehicle within 30 days, DMV shall assign vehicle’s certificate of title to salvage pool or occupational licensee.
  • Salvage certificate or nonrepairable vehicle certificate shall be free and clear of liens.
  • Imposes a state-mandated local program by creating a new infraction for perjury.
  • Requires the salvage pool to remove and submit nonrepairable vehicle's license plates to the DMV and maintain records of the license plate and notices sent for 2 years.
  • Legislative History
  • On Jan. 23, 2024, bill introduced in Assembly; on Apr. 18, 2024, bill passed Assembly.
  • On Apr. 18, 2024, bill introduced in Senate; on Aug. 29, 2024, bill passed in Senate.
  • On Sep. 11, 2024, bill was enrolled, and presented to Governor for further action.
  • Effectiveness
  • No effective date specified; generally effective Jan. 1 after enactment, on Jan. 1, 2025.
  • Sep. 22, 2024 CAL LEG Governor Approval
  • On Sep. 22, 2024, CAL LEG reported governor approved AB-1901, assigned Ch. 364.

Regulators CAL LEG
Entity Types Ins
Reference Ch. 364, 9/22/2024; Bill AB1901, 9/11/2024; Citation: *CAL LEG* 5-3, 5-3-11540;
Functions Claims/Accelerated Benefits; Compliance; Legal; Operations; Reporting
Countries United States of America
Category
State
Products Insurance; Insurance-Property
Regions Am
Rule Type Final
Rule Date 9/11/2024
Effective Date 1/1/2025
Rule Id 225984
Linked to N/A
Reg. Last Update 9/22/2024
Report Section US Consumer

Last substantive update on 09/24/2024