{"data":{"id":"us-ky/krs-186a.520","jurisdiction":"us-ky","citation":"KRS 186A.520","heading":"Salvage titles -- Conditions for issuance -- Operation of vehicle with","body":"salvage title.\n(1) Except as provided in KRS 186A.555, a salvage title shall be obtained by the owner\nof a motor vehicle that meets the following definition of a salvage vehicle:\n(a) 1. A vehicle that has been wrecked, destroyed, or damaged, to the extent\nthat the total estimated or actual cost of parts and labor to rebuild or\nreconstruct the vehicle to its preaccident condition and for legal\noperation on the roads or highways, not including the cost of parts and\nlabor to reinstall a deployed airbag system, exceeds seventy -five percent\n(75%) of the retail value of the vehicle, as prescribed by a nationally\naccepted used car valuation guide or tool identifi ed under KRS 304.20 -\n110.\n2. The value of repair parts for purposes of this paragraph shall be\ndetermined by using the current published retail cost of the parts equal\nin kind and quality to the parts to be replaced or the actual retail cost of\nthe repair parts used in repair.\n3. The labor costs of repairs for purposes of this paragraph shall be\ncomputed by using the hourly labor rate and time allocations which are\nreasonable and customary in the automobile repair industry in the\ncommunity where the repairs are performed.\n4. Airbag reinstallation costs which are excluded from the seventy -five\npercent (75%) computation as set forth in subparagraph 1. of this\nparagraph shall be included by an insurer in the computation of the total\nphysical damage estimate acco rding to the terms and conditions of\nindividual policies, provided that the total costs payable by an insurer do\nnot exceed the total retail value of the vehicle; or\n(b) A vehicle that is exempt from certificate of title surrender under KRS\n186A.295(3).\n(2) The owner or an authorized agent of a motor vehicle that meets the definition of a\nsalvage vehicle as set forth in subsection (1) of this section shall, within fifteen (15)\ndays from the receipt of all necessary paperwork required by this chapter, submit  an\napplication to the county clerk, on a form prescribed by the Department of Vehicle\nRegulation, for a salvage title, accompanied by a properly endorsed certificate of\ntitle and any lien satisfactions, if any appear, as may be required.\n(3) The county clerk shall retain a copy of each salvage title application received and\nshall forward the original and its supporting documents to the Department of\nVehicle Regulation in a manner similar to that for handling of an application for a\ntitle.\n(4) The county clerk shall rely on the information provided by the owner or authorized\nagent, including a county of residence designation, on:\n(a) Any approved, notarized state form utilized in lien titling or the title transfer\nprocess signed by the owner or authorized agent; and\n(b) Any document submitted during the transfer of a salvage vehicle from an\nowner to an insurer.\nReliance on the foregoing by the county clerk shall relieve the office of the county\nclerk from liability to any third party claiming failure to comply with this section.\n(5) The Department of Vehicle Regulation shall process the salvage title application in\na manner similar to that used in processing a title application and the salvage title\nshall be delivered in a like manner of a title.  Salvage titles shall be construed as\nproof of ownership of a vehicle in a state as to be unusable upon the highways of\nthe Commonwealth.\n(6) A vehicle shall not be issued a registration for highway use as long as a salvage title\nis in force. The only time  a vehicle with a salvage title may be operated upon the\nhighways of the Commonwealth is when it is in route to or from an inspection by\nthe certified inspector prior to obtaining a certificate of title after having been\nrebuilt as per KRS 186.115.\n(7) Notwithstanding the provisions of KRS 369.103, when a salvage vehicle is\ntransferred from an owner to an insurer, the following shall be exempted from the\nrequirements of notarization, including exemption from the notarization of\nelectronic signature requirements of KRS Chapter 423:\n(a) The transfer of ownership on the certificate of title;\n(b) Any power of attorney required in connection with the transfer of ownership\nto the insurer;\n(c) Any required odometer disclosure statement;\n(d) The application for a salvage certificate of title; and\n(e) The transfer of ownership on the salvage certificate of title issued.\n(8) Subsections (2) to (5) of this section shall not apply to applications for salvage title\nusing the electronic title application and registration s ystem established under KRS\n186A.017.","path":["KRS Chapter 186A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57592","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:40Z","sha256":"9cb53d531995ca77fcae6031d48400ca12fde2eee186c78d317f9fbc415b8d73","source_id":"us-ky","stale":false,"prev":"us-ky/krs-186a.510","next":"us-ky/krs-186a.525"},"notice":"GroundRules: Original legal text. Not legal advice."}