Maryland Governor signs bill to curb salvage issues

Maryland Governor Martin O'Malley signed a bill proposed by Delegate James "Jimmy" Malone on May 20 that will curtail many issues not in the interests of collision repairers caused by a 2008 bill that changed the salvage vehicle threshold.

The Washington Metropolitan Auto Body Association (WMABA) played a pivotal role in suggesting and producing this legislation that will take effect October 1st, 2010. The 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 in the recent legislative session.

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.

WMABA and other stakeholders will work with the Maryland MVA and State Police to define "Cosmetic" as it relates to collision repair in the coming weeks. Updates on the finality of the process will be sent as soon as they become available.