SB96 Alabama 2025 Session

Updated Feb 23, 2026

Summary

Primary Sponsor: Josh CarnleySenator
Republican
Session: 2025 Regular Session
Title: Motor vehicles; salvage certificate of title requirements, revised
Summary: SB96 lets Alabama vehicle owners obtain salvage titles when their vehicle is damaged and declared a total loss in any state, and updates rules for salvage, rebuilt, and dismantling processes.
What This Bill Does
It expands salvage-title eligibility to total losses declared outside Alabama. It creates detailed rules for how salvage and rebuilt titles are issued, inspected, and designated (including decals for rebuilt status and a flood-vehicle designation for water-damaged cars), and it establishes requirements for disclosures when selling salvage or rebuilt vehicles. It also imposes recordkeeping, verification, and fee obligations on insurers, dismantlers, and recyclers, with penalties for noncompliance and a new online title verification system. Additionally, it sets the effective date of October 1, 2025.

Who It Affects
Vehicle owners whose cars are damaged and declared total losses (in any state) and insurers handling those total-loss claims, who must follow the new timelines, document transfers, and salvage-title processes.
Licensed automotive dismantlers and parts recyclers, secondary metals recyclers, and related parties who must surrender titles, maintain records, use the NMVTIS verification system, and comply with new reporting, inspection, and fee requirements.

Key Provisions
Amends Section 32-8-87 to allow salvage certificate applications when a vehicle is declared a total loss in any state, not just Alabama.
Total loss defined as 75% or more of the vehicle's pre-damage fair retail value, with exclusions for medical costs, vehicle rental, and similar payments; minor damage from theft is not total loss.
Salvage titles cancel the existing chain of title on surrender and require proper documentation and an inspection before a new title can be issued.
Vehicles with salvage certificates may not be driven on highways unless being moved for restoration or inspection, and must display a valid Alabama dealer plate during movement.
Insurance settlements must obtain and forward the vehicle’s original title to the department and, if the vehicle is recovered after theft, assign salvage certificates to the purchaser when applicable.
Dismantlers and recyclers must surrender titles for salvage/junk vehicles, maintain five years of records, and use NMVTIS verification; penalties and possible immunity from liens apply for compliant parties.
New decals or emblems will reflect rebuilt status on vehicles restored in-state, with a required inspection and a rebuilt designation on the title if applicable.
Sellers must disclose salvage or rebuilt status to buyers with a 10-point written disclosure at the time of transfer.
Flood designation: vehicles designated as flood vehicles due to water damage must carry a 'flood vehicle' designation on the title, with transfer disclosures.
Fees: $15 title fee; $75 inspection fee per restored vehicle, plus a $5 per submittal NMVTIS-related charge or a $500 annual fee for all submittals; funds support the department’s vehicle inspection program.
Effective date: October 1, 2025.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Motor Vehicles & Traffic