Thursday, 25 May 2017 18:17

Nevada Bill Addressing Total Loss Thresholds Does Not Move Forward

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A Nevada bill that would have revised the provisions governing total loss vehicles was pending a vote in the state Assembly before it was removed from the table. Now, all parties involved are looking to see how this might affect future decisions in regard to totaling a vehicle.

Assembly Bill 368 was introduced earlier this year by Robert Compan, vice president of the Nevada Insurance Council, and sponsored by Assembly Minority Leader Paul Anderson. The amended bill proposed to raise the threshold for a total loss to 80 percent. Currently, the threshold is 65 percent after exclusions such as paint/materials and electronic components are removed. The remainder of vehicles totaled by insurers receive a salvage title.


“We saw that as being an extreme safety hazard,” said Compan, who is also chairman of the Coalition of Nevada Insurance Lobbyists. “When a vehicle hits its threshold, the insurance company is not going to repair a vehicle that has exceeded its value. It creates confusion for consumers, the industry and for the body shops and their customers.”

487.800 NRS  Salvage vehicles: Duties of insurance company and relinquishing owner;  application for salvage title; sale of vehicle; rebuilt and restored vehicles; retention; exclusion of nonrepairable vehicles.

1. When an insurance company acquires a motor vehicle as a result of a settlement in which the motor vehicle is determined to be a salvage vehicle, the owner of the motor vehicle who is relinquishing ownership of the motor vehicle shall endorse the certificate of title of the motor vehicle and forward the endorsed certificate of title to the insurance company within 30 days after accepting the settlement from the insurance company. The insurance company or its authorized agent shall forward the endorsed certificate of title, together with an application for a salvage title or nonrepairable vehicle certificate, to the state agency within 180 days after receipt of the endorsed certificate of title.

The bill was originally sponsored by Barbara Buckley, the former Assembly Speaker. In 2011, the provision of electronic components was added to the legislation. Compan said it’s the most interesting statute of its kind in the country when you consider how the issue is handled across the 50 states. “They either allow the insurance company to determine when a vehicle is an economic total loss or they have some kind of threshold. They don’t put in ‘less paint materials and electronic components.’ With today’s modern-day cars, nearly every component of the car is electronic.”


The bill was on the chief clerk’s desk ready for a vote when Anderson decided not to pursue it at this time. “With all of the discerning language that was placed into the amendment, it’s just not worth passing right now,” said Compan.

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