KRS 186A.295: Owner to surrender title on destroyed vehicle or trailer -- Salvage title

exception.

(1) (a) Subject to the limitations in paragraph (c) of this subsection, any person or

entity having a motor vehicle or trailer that has been destroyed, to t he extent

that its repair cannot be obtained through usual commercial repair services, at

a cost less than its retail value as prescribed by a nationally accepted used car

valuation guide or tool identified under KRS 304.20 -110, or from which two

(2) or more parts which typically bear a vehicle identification number placed

thereon by the manufacturer have been removed, or which he or she removes,

shall surrender the certificate of title for the vehicle for which he or she has a

certificate of title in his, or her, or another name, to the county clerk of the

county in which the vehicle is located. The clerk shall immediately forward

the surrendered title to Frankfort with instructions for canceling the title.

(b) Any person or entity engaged in the sale of us ed motor vehicle or trailer parts,

or the recycling or salvage of them, shall surrender the certificate of title for

any vehicle in his or her possession, and for which he or she has a certificate

of title, whether in his or her or another name, if the veh icle is destroyed

within the meaning of paragraph (a) of this subsection, or from which two (2)

or more parts which typically bear a vehicle identification number placed

thereon by a manufacturer have been removed, or which he or she removes, to

the county clerk of the county in which the vehicle is located. The clerk shall

immediately forward the surrendered title to Frankfort with instructions for

canceling the title.

(c) 1. The calculation of the cost of repair referenced in paragraph (a) of this

subsection shall only include labor and parts for actual damage to the

suspension, motor, transmission, frame or unibody, and designated

structural components, and shall not include cosmetic damages.

2. Subparagraph 1. of this paragraph shall not alter the calcul ation of the

cost of repair for any existing obligation of an insurer to pay for the cost

of parts and labor for cosmetic repairs to a motor vehicle or trailer that

affects the vehicle's appearance in accordance with KRS 186A.520.

(d) The surrender of the certificate of title pursuant to this section shall be made

within ten (10) working days, next succeeding the day when the vehicle was

received, destroyed, or next succeeding the day during which a second part

was removed.

(2) Each county clerk shall recei ve without charge, a certificate surrendered in

accordance with this section, cancel it, and remit it to the Department of Vehicle

Regulation, and take any other action related to it, as required by the Department of

Vehicle Regulation.

(3) If the calculation of the cost of repair in subsection (1) of this section exempts a

vehicle from having the certificate of title surrendered, the title shall be branded as

a salvage title in accordance with KRS 186A.520.