Bill > HB5234

This bill modifies Michigan's vehicle code regarding salvage and scrap vehicles, primarily updating procedures for how insurance companies, dealers, and other entities must handle vehicles that are damaged to the point of being considered salvage or scrap. The bill clarifies and standardizes the process for obtaining salvage or scrap certificates of title when a vehicle's repair costs exceed a certain percentages of its predamaged value (75% or 91%), requiring detailed documentation and specific transfer restrictions. Key changes include includeusing more precise language about deadreplacing """ specifying timelines for title transfers, Insurance updating the process for when insurance companies acquire vehicle through totalaged payments, and modifying requirements for who can sell or salvage or scrap vehicles. The bill also details the inspection process for rebuilt salvage vehicles, including certification requirements by specially trained officers, and establishes guidelines for how inspection fees can be collected and used by local police agencies. Additionally, the bill preserves protections for consumers by ensuring that vehicles with salvage or scrap titles are properly documented and can only be transferred to specific types of buyers, such aslers automotive recyclers, scrap metal processors, and parts dealers.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5234