- I purchased a late model distressed vehicle at an auction from an insurance company. Since the insurance company did not apply for a salvage or scrap title, do I have to?

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I purchased a late model distressed vehicle at an auction from an insurance company. Although the vehicle meets the definition of a distressed vehicle, I got a clean title. Since the insurance company did not apply for a salvage or scrap title, do I have to?

Answer:

Yes. If the vehicle meets the criteria for salvage (75% -90% of the predamaged value) or scrap (91% or more of the predamaged value), dealers are required by law to apply for the appropriate title within 5 days. For more information, see the information regarding special titles on the Secretary of State Web site, or the Salvage Section of the Dealer Manual.

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