- Sep 26, 2006
House bill aims to red-flag totaled and flood-damaged vehicles
And that's where the Damaged Vehicle Information Act comes in. According to The Auto Channel, its aim is "to ensure that totaled and flood-damaged vehicles are flagged forever so that consumers and auto retailers can make more informed decisions about the safety and fair market value of used cars." This NADA-supported House bill wouldn't require any additional infrastructure, just a permanent red flag affixed to the vehicle's record. Insurance companies would have to make available information about a totaled vehicle's VIN, the reason for it being written off, mileage when it happened and whether the airbags deployed. A similar Senate bill was also introduced and is working its way through committee. Obviously this isn't just about Katrina cars. Every year as many as five million cars are totaled and many find their way back to dealer lots and showrooms.
[Source: The Auto Channel]