Wednesday August 29
New Louisiana Law Says Hail-Damaged Vehicle Not Necessarily 'Total Loss'
BATON ROUGE, La. -- A motor vehicle damaged 75 percent of its value or more by hail will not have to be junked as a "total loss" under a new state law that took effect August 15, according to an NAII release.
"A vehicle damaged to that extent by hail will be issued a branded title indicating the damage but it will not have to be considered a total loss and salvaged," said Gregory LaCost, National Association of Independent Insurers (NAII) counsel. The law was enacted as House Bill 1964.
"This means the legal owner of the vehicle will have the prerogative to continue to use the vehicle or sell it, with the buyer knowing the extent of damage. In this manner, the owner can accept an insurance payment and the vehicle won't necessarily be junked. In the event that the owner retains possession of the vehicle, he or she will have a greater say over the disposition of their property."
NAII, based in suburban Chicago, is the national property/casualty trade association with more than 690 member companies writing more than $98 billion in annual premium. NAII members write more than 33 percent of the property/casualty insurance in the United States.
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