Changes to Existing Law
SB227 — Establish a minimum damage threshold for a motor vehicle total loss declaration.
1 section modified+1040-0
View:
§ 58-12
New Section+1040
NEW SECTION added to Chapter 58-12
An insurer may not declare that a motor vehicle is a total loss because of damage caused by a collision, fire, vandalism, weather, or other peril, unless the cost of repairing the vehicle meets or exceeds seventy-five percent of the actual cash value of the vehicle before it was damaged. Nothing in this section prohibits an insurer from declaring, at the request of and with the express written authorization of the vehicle owner, that the vehicle is a total loss, even if the cost to repair the vehicle is less than seventy-five percent of the actual cash value of the vehicle immediately preceding the time it was damaged. For purposes of this section, “actual cash value” means the current market value of the motor vehicle, within a radius of two-hundred miles from the primary address of the vehicle owner, taking into consideration: (1) The year, make, and model of the vehicle; (2) Any accessories and options; (3) Any natural deterioration from normal use; (4) The odometer reading; and (5) The accident history of the vehicle. 20