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| Legislative Watch | 
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Alabama |
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4/25/06-Gov. Bob Riley signed a bill that is intended to provide car, truck and motorcycle buyers with greater assurances that used vehicles have not been water damaged. It won unanimous consent in the Legislature.
The new law, previously HB152, requires sellers of flooded vehicles to disclose that information to buyers in writing. Any water-damaged vehicle that has been totaled by insurance companies and then rebuilt will have to carry the words “flood vehicle” on the title.
Anyone found in violation of the rule would face fines of $500 and possible jail time.
Existing Alabama law requires that when the damage to a vehicle equals at least 75 percent of the value and it is rebuilt, then the title must note that it is a salvage vehicle.
The new law, previously HB152, requires sellers of flooded vehicles to disclose that information to buyers in writing. Any water-damaged vehicle that has been totaled by insurance companies and then rebuilt will have to carry the words “flood vehicle” on the title.
Anyone found in violation of the rule would face fines of $500 and possible jail time.
Existing Alabama law requires that when the damage to a vehicle equals at least 75 percent of the value and it is rebuilt, then the title must note that it is a salvage vehicle.