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LB 112

Change provisions relating to salvage branded certificates of title

109th Legislature (2025-2026) Introduced by Dan Quick

Expands salvage to include structurally damaged vehicles, with a 75% repair cap; insurers must brand titles, notify owners, and report electronically, affecting owners and insurers.

Title printed. Carryover bill
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Bill Summary · LB 112

Summary of LB 112 ( Nebraska, 2025)

Overview

  • Bill number: LB 112
  • Title: Change provisions relating to salvage branded certificates of title
  • Introduced: January 10, 2025
  • Committee: Transportation and Telecommunications
  • Hearing: February 10, 2025
  • Purpose: Expand the definition of salvage to include structurally damaged vehicles and update related procedures for salvage branded titles.

What the bill would do (Key Provisions)

1) Redefine salvage and related terms

  • Salvage Vehicle Definition Expansion: The bill expands salvage to include vehicles that are structurally damaged, as determined jointly by:
    • The insurance company that insured the vehicle at the time of damage, and
    • The facility performing the repair.
  • Exclusions: The definition would not include:
    • Total losses caused by hail or cosmetic damage.
  • Structural Total Loss: Introduces and clarifies the concept of a “structurally totaled vehicle,” with criteria tied to structural components (e.g., frame rails, unibody, engine cradle, rear differential) and excludes hail/cosmetic-only damage.
  • Cap on Repairs: A structurally totaled designation would not apply if the cost to repair does not exceed 75% of the vehicle’s actual cash value.

2) Salvage branding process and title duties

  • Insurer Actions upon Total Loss or Structurally Totaled Designation:
    • When an insurance company pays a total loss settlement or designates a vehicle structurally totaled, it must obtain the owner’s certificate of title, surrender it to the county treasurer, and apply for a salvage branded certificate of title to be assigned upon transfer of ownership.
    • If the owner elects to retain the salvage vehicle, the insurer must notify the department, which will immediately enter the salvage brand on the vehicle’s computerized record.
  • Ownership Retention by Owner: If the owner retains the salvage vehicle, procedures require the owner to forward the endorsed title back to the county treasurer to obtain a salvage branded certificate of title (unless previously salvaged).
  • Electronic Reporting: Beginning on an implementation date set by the director, insurers must report electronically to the department regarding salvage branding and owner notification.
  • Owner Notification: Insurers must inform owners of their responsibilities under the salvage branding process.

3) Salvage branding application when owner can’t be reached

  • If the insurer cannot obtain the endorsed certificate of title from the owner after settlement discussions, the insurer may apply to the department for a salvage branded certificate of title, following specified steps (e.g., at least two written attempts, evidence of settlement).

4) Related statutory cleanups

  • The bill repeals certain sections and revises cross-referencing within sections 60-171, 60-173, and 60-146 to align with the new salvage branding framework.

Who is Affected

  • Vehicle Owners: Individuals who have vehicles subjected to total loss, structural total loss, or salvage branding.
  • Insurance Companies: Responsible for reporting, branding salvaged/structurally totaled vehicles, and notifying owners.
  • County Treasurers: Issue salvage branded certificates of title upon receipt of proper documentation.
  • Nebraska Department of Motor Vehicles (or equivalent department): Processes salvage branding, maintains electronic records, and oversees reporting requirements.

Timelines and Procedural Notes

  • Implementation Timing: An implementation date is to be designated by the department director for electronic reporting and related systems.
  • Notice and Reporting: Insurers must notify owners and report salvage branding electronically once the implementation date is reached.
  • Hearing Date: February 10, 2025, in the Transportation and Telecommunications Committee.

Potential Impacts

  • Broader use of salvage branding for structurally damaged vehicles, potentially expanding the market for rebuilt or salvage-titled vehicles.
  • Increased coordination among insurers, repair facilities, the department, and county treasurers.
  • Clarified distinctions between salvage due to structural damage versus cosmetic or hail-related losses, potentially affecting valuation, resale, and title status.

Compiled from official sources — confirm details with the bill’s official record.

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