A state task force on vehicle salvage titles chaired by Senator John Jasinski (R-Faribault) has completed its work and has issued a report on improvements that can be made to Minnesota’s salvage title process.

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,” said Sen. Jasinski. “The recommendations that came out of this task force will help more customers feel confident next time they go to purchase a used car.”

The task force has developed legislation, to be chief authored by Sen. Jasinski, based on its recommendations to improve transparency 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 development of any proposed legislation.