FI showroom red and grey logo
MenuMENU
SearchSEARCH

Lawmakers To Pursue Disclosure of Insurance-Totaled Vehicles

Hoping to provide dealerships with better tools to spot problem vehicles before they come into inventory, Senator Trent Lott (R-Miss.), Rep. Cliff Stearns (R-Fla.), and other Congressional leaders pledged at a Dec. 7 press conference to continue their efforts to pass total-loss disclosure legislation when the new Congress convenes in January. Lott said he plans to reintroduce legislation in the 110th Congress to reduce title fraud and title washing on insurance-totaled vehicles.

by Staff
December 12, 2006
3 min to read


Washington, D.C. – Hoping to provide dealerships with better tools to spot problem vehicles before they come into inventory, Senator Trent Lott (R-Miss.), Rep. Cliff Stearns (R-Fla.), and other Congressional leaders pledged at a Dec. 7 press conference to continue their efforts to pass total-loss disclosure legislation when the new Congress convenes in January. Lott said he plans to reintroduce legislation in the 110th Congress to reduce title fraud and title washing on insurance-totaled vehicles.


“The more consumers hear about the danger caused by rebuilt wrecks, the more they want Congress to do something about it,” said David Regan, vice president of legislative affairs for NADA. “With more than five million vehicles totaled by insurance companies just last year — more than half a million of them coming from the Gulf Hurricanes of 2005 — something has to be done to permanently notify consumers about these severely damaged vehicles.”

Ad Loading...


The goal of the legislation is to get total loss information into the public domain more comprehensively and faster than it is today. Officials from the NADA said dissemination of this information is hampered because laws regarding what is deemed a total loss vary by state. The new legislation would push a separate stream of data into the public domain by requiring insurance companies to make vehicle data commercially available to information vendors such as Experian, CARFAX and AutoCheck.


“Experian and CARFAX are dependant on the state, and not all insurance-totaled vehicles are titled by the state,” added Regan. “If all insurance companies report this data, then that would be more data going into the system that what’s coming through from the DMV.”


Due to water damage, severe accident, theft, etc., insurance companies may declare a vehicle a “total loss,” but each year thousands of these vehicles are sold at salvage auctions and rebuilt and re-enter the market with clean titles.


Lott and a bipartisan list of colleagues sponsored S. 3707, the Passenger Vehicle Loss Disclosure Act, to require that insurance companies permanently red-flag totaled, flooded or stolen vehicles in the 109th Congress. S. 3707 is related to a similar bill introduced by Rep. Stearns, H.R. 6093, in the House of Representatives.


Aside from permanently red flagging severely damaged vehicles, the bill would require insurance companies to reveal the reason for the total loss (flood, collision, stolen, etc.), the date of total loss, the odometer reading on that date, and whether or not the airbag deployed.

Ad Loading...


Both the House and the Senate bills would also attack motor vehicle title fraud at the core by disclosing total-loss information before a vehicle is sold at salvage auction, rebuilt, and returned to the market. This federal legislation would not, however, preempt state titling laws or require changes in state laws.


Last month, Seattle-based insurance company, PEMCO, announced that it would voluntarily disclose vehicle flood-damage information to the public. The NADA also released a letter signed by a coalition of automotive organizations, pledging their support for passage of total-loss disclosure legislation.


“The goal of this legislation is simple — if a vehicle is totaled, the VIN should be disclosed to the public,” Regan added. “Armed with total-loss information, consumers, businesses, dealers, auto auctions — anyone buying used cars or accepting trade-ins for a new vehicle — should be able to easily identify one of these rebuilt wrecks, even if the title was washed.”


Topics:Digital

More Digital

Photo of man's hand on laptop keyboard on a desk
Digitalby StaffJune 16, 2026

Zurich Launches Advisor IQ for F&I Manager Coaching

The new platform uses real transaction data and artificial intelligence-driven insights to help car dealerships improve consistency and performance.

Read More →
Adapting to Digital For a convenient and trustworthy experience, F&I and Showroom
DigitalJune 1, 2026

F&I in the Digital Age

Digital retailing has not made the F&I manager obsolete. If anything, it has revealed how valuable the role can become when technology is used correctly.

Read More →
Hands holding phone over graphic.
Digitalby Lauren LawrenceMay 27, 2026

Need for Speed: EV Apps Lack Consistency

Fifty-five percent of surveyed EV owners said their mobile applications had a major or moderate impact on their purchasing decisions, but connectivity issues remain a problem.

Read More →
Ad Loading...
Light 'trail' to illustrate the idea of a digital trail
Digitalby Gil Van OverMay 18, 2026

Four Keys to Your Digital Trail Defense

Federal regulators are cracking down on hidden fees. This protective measure could mean the difference between winning and losing a lawsuit or surviving a duel with the Dark Side.

Read More →
Hyundai Motor Group Tech Talent Forum 2026 September 17-18 San Jose, California. background of starry night
Digitalby Lauren LawrenceApril 20, 2026

Hyundai Hosts Tech Talent Forum

Technology leaders from Hyundai Motor Group will have open discussions at the inaugural HMG Tech Talent Forum on topics ranging from autonomous driving to 'smart' manufacturing.

Read More →
car outline on top of a data background
Digitalby Lauren LawrenceApril 7, 2026

Dealers Seek Actionable AI

Dealers are facing growing frustrations with current generic artificial intelligence tools, according to a survey by Lotlinx, which found they want a solution that understands their inventories.

Read More →
Ad Loading...
Ron Reahard, president of Reahard & Associates, announcing an integration with ImpactMenu to enhance F&I transaction recording, compliance and dealership performance insights.
Digitalby StaffMarch 19, 2026

Reahard & Associates Forges New Integration

The firm's F&I Insight tie-up with The Impact Group’s ImpactMenu platform is designed to enhance finance-and-insurance transaction recording for auto dealerships.

Read More →
Chris Walsh, president and acting CEO of Reynolds and Reynolds, promoting the company’s Amplify 2026 event for dealership professionals focused on technology and operations.
Digitalby StaffMarch 13, 2026

Registration Open for Reynolds Amplify Retail Summit

Advancements with Reynolds' AI Agent, Rey, will take center stage this August at the Park Hyatt Aviara in Carlsbad, Calif., near San Diego.

Read More →
A customer signs documents on a digital e-contracting tablet using a stylus while a dealership employee points to the screen, alongside the Reynolds and Reynolds and Assurant logos.
Digitalby StaffMarch 6, 2026

Automotive Training Academy by Assurant Grows Offering

A new Atlanta location on Reynolds and Reynolds' docuPAD e-contracting system is designed to broaden access for auto professionals.

Read More →
Ad Loading...
A dealership customer works with an F&I representative at a desk during the vehicle purchase process.
Digitalby StaffJanuary 30, 2026

Assurant Debuts Virtual Solution for Dealers' Staffing Challenges

Company says on-demand access to F&I specialists is shown to boost dealership efficiency and profitability.

Read More →