Effective March 30, federal rules require all insurance carriers, auto recyclers, salvage yards and junk yards to report total loss and salvage vehicle data to the National Motor Vehicle Title Information System (NMVTIS). The rules also apply to any entities that handle, control, own or acquire salvage vehicles, such as salvage pools, salvage auctions, pull- or pick-apart yards, scrap-vehicle shredders, scrap-metal processors and crushers.
The rules require that salvage companies report at least every 30 days. However, the U.S. Department of Justice strongly recommends that insurance carriers report within 24 hours to help maintain the accuracy of NMVTIS.
NMVTIS contains title, odometer, and brand information, such as "flood" or "rebuilt," which is maintained even when a vehicle changes title from one state to another. Without a nationwide program of this kind, criminals can re-title a damaged vehicle in another state with no record of the damage (brand washing) or replace a clean-title junk vehicle with a stolen car of similar make and model (VIN cloning.)
By making these fraudulent activities more difficult, NMVTIS can help keep unsafe vehicles off the road and prevent criminal activity. The end-of-life data reported by insurers and salvage companies expands the scope and accuracy of NMVTIS.
Currently, insurers and salvage companies must report their data through a third-party provider, such as Auto Data Direct (ADD), which allows electronic reporting via its Web site at www.add123.com. The site allows batch reporting for high-volume companies.
NMVTIS is designed to be used by law enforcement officials, state department of motor vehicle offices and other entities. It also is available to the general public. For more information about NMVTIS, including who is required to report to it, visit www.nmvtis.gov.
