The Minnesota Senate today unanimously approved legislation authored by Senator John Jasinski (R-Faribault) to overhaul the state’s vehicle salvage title rules. The legislation is the result of the work of a task force on salvage titles that Jasinski chaired, which completed its work this past January.

The aim of the task force was to close a loophole in Minnesota statute called “title washing,” which allowed certain salvaged cars to evade a salvage designation. The task force also worked on ways to improve transparency for customers purchasing used vehicles, so they can have confidence in their purchase. 

“Buying a car always carries certain risks, but we can minimize those risks by making sure customers know exactly what they are getting,” Jasinski said. “Especially with used car prices being as high as they are, customers need transparency and peace of mind more than ever. The changes in this bill will help customers feel much more confident in their purchase.”

The legislation makes several transparency improvements for car buyers:

• The bill will address title washing loopholes by requiring a “salvage” or “prior salvage” brand on all vehicles that are acquired by an insurance company as a total loss or that incur damages over a threshold of 80% of vehicle value

• The bill will require written disclosure of vehicle brands, flooding, or other prior damage

• The bill will extend the title branding and disclosure requirements to commercial vehicles as well as motorcycles 

The legislature created the task force during the 2021 legislative session to review state law governing motor vehicle titling; evaluate the current salvage designation; identify any additional or alternative means to provide information about the condition of a vehicle; and make recommendations for motor vehicle titling changes based on task force findings, including the development of any proposed legislation.