{"data":{"id":"us-ky/krs-186a.530","jurisdiction":"us-ky","citation":"KRS 186A.530","heading":"Titles of rebuilt, water -damaged, and junk vehicles -- Insurance claim","body":"settlements for salvage vehicles -- Disclosure of title brand by owner or dealer -\n- Voidability of sale without disclosure -- Exemption -- Administrative\nregulations.\n(1) The owner of a motor vehicle that meets the definition of a salvage vehicle as set\nforth in KRS 186A.520(1) and has been issued a salvage certificate of title in\nKentucky, or the equivalent thereof by another licensing jurisdiction, and has been\nrebuilt, may make application for a new certificate of title pursuant to KRS\n186.115. The Transportation Cabinet may promulgate administrative regulations\npursuant to KRS Chapter 13A governing the form of application.\n(2) Upon receipt of a salvage certificate o f title issued pursuant to KRS 186A.520, or\nsimilar title issued by another state if the title does not disqualify the vehicle from\nbeing titled for use on the highway in that state, and proof of passing the inspection\nrequired by KRS 186A.115, the cabinet shall issue a new certificate of title with the\nwords \"rebuilt vehicle\" printed on the face of the title. The brand shall be carried\nforward and printed in the appropriate section on the face of all titles issued\nthereafter for that motor vehicle.\n(3) If ownership of a motor vehicle has been transferred to an insurance company\nthrough payment of damages, the insurance company making the payment of\ndamages shall be deemed the owner of the vehicle.\n(4) The owner of a water damaged vehicle shall make applicat ion to the cabinet for a\nsalvage certificate of title as provided for in KRS 186A.520. The owner of a vehicle\nwith a brand from another jurisdiction identifying the vehicle as water damaged or\nother similar designation who is making application for a Kentu cky title shall be\nissued a title with the words \"water damaged\" printed on the face of the title.\n(5) A Kentucky salvage certificate of title may be issued from an out -of-state junking\ncertificate or other ownership document bearing a designation of \"junk ,\"\n\"unrebuildable,\" or other similar classification that disqualifies the vehicle from\nbeing titled for use on the highway in that state with the following provisions:\n(a) The out-of-state junking certificate of title or other ownership certificate shall\nbe an original, secure document;\n(b) The applicant shall submit a minimum of two (2) photographs of the motor\nvehicle showing the damage to the motor vehicle. The photographs shall be\nincluded in the application for a salvage certificate of title;\n(c) The a pplicant shall submit a minimum of two (2) estimates of damage\nverifying that the condition of the vehicle which has been issued the junking\ncertificate constitutes less than seventy -five percent (75%) of the retail value\nof the vehicle, as prescribed by a  nationally accepted used car valuation guide\nor tool identified under KRS 304.20-110; and\n(d) A salvage title issued under this subsection shall be branded \"SALVAGE.\"\nThe Transportation Cabinet shall use a unique method of identification to\ndifferentiate a salvage title issued under this subsection from other salvage\ntitles.\n(6) (a) Upon receipt of a salvage certificate of title issued pursuant to subsection (5)\nof this section, or an out -of-state junking certificate or other ownership\ndocument bearing a d esignation of \"junk,\" \"unrebuildable,\" or other similar\nclassification that disqualifies the vehicle from being titled for use on the\nhighway in that state, and proof of passing the inspection required by KRS\n186A.115, the cabinet shall issue a new certifi cate of title with the words\n\"REBUILT VEHICLE\" printed on the face of the title. The Transportation\nCabinet shall use a unique method of identification to differentiate a rebuilt\nbrand issued under this paragraph from other rebuilt brands. The brand shall\nbe carried forward and printed in the appropriate section on the face of all\ntitles issued thereafter for that motor vehicle.\n(b) A person who obtains a rebuilt title under this subsection shall permanently\naffix a plate of metallic composition within the opening for the driver's side\ndoor which states \"REBUILT VEHICLE - May Not Be Eligible For Title In\nAll States.\"\n(7) (a) When an i nsurance company makes a claim settlement on a vehicle that has\nbeen stolen and recovered, if the vehicle meets the definition of a salvage\nvehicle as set forth in KRS 186A.520, the company shall apply for a salvage\ncertificate of title as provided for in KRS 186A.520. Upon receipt of this\ninformation, the cabinet shall issue the company a certificate of title to replace\na salvage certificate of title. The cabinet shall promulgate administrative\nregulations pursuant to KRS Chapter 13A regarding the forms an d any\nadditional information which insurance companies shall be required to obtain\nand submit when seeking a certificate of title to replace a salvage certificate of\ntitle.\n(b) In claim settlements that do not involve transfer of the vehicle to the insurance\ncompany, an insurer shall not render payment on a damage claim for a vehicle\nwhose damage meets or exceeds seventy -five percent (75%) of the value of\nthe vehicle, until the insurer has received proof that the owner has surrendered\nthe title or has appli ed for a salvage certificate of title as set forth in KRS\n186A.520. The owner shall apply for a salvage certificate of title within three\n(3) working days of the agreed settlement. This subsection shall not apply to\nhail-damaged vehicles under KRS 186A.555.\n(c) An insurance company shall not refuse coverage to, and shall not reclassify\ncoverage of, a vehicle that has been issued a rebuilt title pursuant to the\nprovisions of this section.\n(8) A motor vehicle owner or a motor vehicle dealer licensed in this s tate who offers\nfor sale, trade, or transfer a motor vehicle which carries a title brand, as set forth in\nsubsection (2) or (6) of this section, shall disclose the nature of the brand to any\nprospective buyer or transferee, prior to the sale, and according to the following:\n(a) Dealer disclosure shall be located on a sticker placed on the vehicle. The\nsticker wording shall be printed in at least ten (10) point, bold face type, on a\nbackground of obviously different color, and shall include the following:\n\"THIS IS A REBUILT VEHICLE.\" This disclosure information shall not\nappear on vehicles that do not have a branded title. Dealer disclosure shall\nalso be located on a buyer's notification form to be approved by the\nTransportation Cabinet. The form shall inform  the buyer that the vehicle is a\nrebuilt vehicle and may include any other information the cabinet deems\nnecessary; and\n(b) Nondealer disclosure shall be made in accordance with the procedures\nprovided for in KRS 186A.060. The Department of Vehicle Regulat ion shall\nensure that disclosure information appears near the beginning of the\napplication for title and informs the buyer that the vehicle is a rebuilt vehicle.\n(9) Failure of a dealer to procure the buyer's acknowledgment signature on the buyer's\nnotification form or failure of any person other than a dealer to procure the buyer's\nacknowledgment signature on the vehicle transaction record form shall render the\nsale voidable at the election of the buyer. The election to render the sale voidable\nshall be li mited to forty -five (45) days after issuance of the title. This provision\nshall not bar any other remedies otherwise available to the purchaser.\n(10) The notification provisions of this section shall not apply to motor vehicles more\nthan ten (10) model years old.\n(11) A manufacturer licensed under KRS Chapter 190 shall not prohibit or restrict the\ninstallation of vehicle software on a vehicle that has been issued a rebuilt title under\nthis section.\n(12) The Transportation Cabinet shall promulgate administra tive regulations pursuant to\nKRS Chapter 13A, regarding the administration of the title branding procedure. The\nadministrative regulations shall include the manner in which salvage titles and\nrebuilt brands on vehicles previously declared unrebuildable by another state are\ndifferentiated from other salvage titles and rebuilt brands. The administrative\nregulations may include designation of additional brands which provide significant\ninformation to the owner.","path":["KRS Chapter 186A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57823","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:40Z","sha256":"a40ccb0c21ce135e6ea8eea0ff365c47bca093ec31d5b06a6d7d5eb5206098d7","source_id":"us-ky","stale":false,"prev":"us-ky/krs-186a.525","next":"us-ky/krs-186a.535"},"notice":"GroundRules: Original legal text. Not legal advice."}