Seller’s Claims Versus The Vehicle History Report

Always compare the seller’s claims with verified records. A car that appears to have a clean title in one state may have a history of accidents, flood damage, or theft in another state. Use vehicle history reports to cross-check and ensure the vehicle’s background aligns with the seller’s statements.

Accident Rates by State

States with higher accident rates can increase the likelihood of purchasing a vehicle with a repaired accident history. For instance, California, Texas, and Florida have high traffic volumes and consequently higher accident rates, making it more common to encounter vehicles with previous accident damage in these regions.

States with the highest amount of car crash fatalities, Passenger Cars, and Light Trucks, 2022

Rank	State	Passenger Cars	Light Trucks	Total
1	Texas	1,218	1,164	2,382
2	California	1,297	645	1,942
3	Florida	1,048	652	1,700
4	Georgia	583	467	1,050
5	North Carolina	582	417	999
6	Alabama	400	360	760
7	Pennsylvania	494	263	757
8	Ohio	471	278	749
9	Tennessee	421	315	736
10	Illinois	407	297	704

State Vehicle Theft and Accident Statistics

Knowing vehicle theft statistics by state is crucial when buying a used car as it helps assess the risk of theft, influence insurance premiums, and ensure safety and reliability. States with high theft rates indicate a greater likelihood of the car being stolen, necessitating thorough checks of the vehicle’s history for past theft recoveries. This knowledge helps buyers anticipate higher insurance costs and understand the implications of potential “branded” or “salvage” titles, ensuring they make a well-informed and secure purchase.

Below are the top 10 states with the highest number of motor vehicle thefts in 2022-2023:

Rank	State	2023	2022
1	California	208,668	202,685
2	Texas	115,013	105,015
3	Florida	46,213	45,973
4	Washington	43,160	46,939
5	Illinois	41,528	38,649
6	Colorado	34,068	42,237
7	New York	32,715	28,292
8	Ohio	31,647	29,913
9	Georgia	28,171	26,529
10	Missouri	27,279	29,345

State Variations in Title Branding Designation and Criteria

Title brands such as “Salvage,” “Rebuilt,” “Flood,” or “Lemon” are crucial indicators of a vehicle’s history and condition. These designations, assigned by state motor vehicle departments, provide critical information about significant events or damages the car has experienced.

However, different states have varying criteria for issuing title brands, leading to discrepancies in how a vehicle’s history is reported. This inconsistency can significantly affect a buyer’s understanding of the vehicle’s condition:

• Criteria Differences: States have different thresholds for branding a title. For instance, one state may declare a car “Salvage” if repair costs exceed 70% of its value, while another state might use an 80% threshold. Consequently, a car considered “Salvage” in one state might not receive the same designation in another.
• Branding Practices: Some states have more rigorous inspection and documentation requirements before a title brand is issued or removed, while others might have more lenient practices. This can result in varying degrees of transparency regarding a vehicle’s history.
• Cross-State Sales: A vehicle branded with a salvage title in one state might be repaired and re-titled in another state without carrying over the brand, leading to potential confusion or misleading information for buyers. This practice is often referred to as “title washing.”

Understanding these state variations is crucial for several reasons:

• Accurate Vehicle History: Buyers need to be aware that a vehicle’s history report might not fully reflect its condition if it has been registered in multiple states. A seemingly clean title might hide a problematic past if the car has moved from a state with different branding criteria.
• Informed Decision Making: Knowledge of state-specific title branding laws helps buyers make informed decisions, negotiate better prices, and avoid vehicles with hidden issues.
• Safety Concerns: Awareness of the potential for discrepancies ensures that buyers can take extra steps, such as obtaining independent inspections, to verify the vehicle’s condition.
• Financial and Legal Considerations: Understanding title branding can affect financing options, insurance rates, and future resale value. Buyers should be prepared for potential challenges in insuring or reselling a vehicle with a branded title.

Total Loss Threshold for Designating “Salvage” Status

State	Threshold	State	Threshold	State	Threshold
Iowa	50%	Tennessee	75%	Idaho	TLF
Oklahoma	60%	Virginia	75%	Illinois	TLF
Nevada	65%	West Virginia	75%	Maine	TLF
Arkansas	70%	Wyoming	75%	Massachusetts	TLF
Indiana	70%	Florida	80%	Montana	TLF
Kentucky	75%	North Dakota	75%	Utah	TLF
South Dakota	75%	Oregon	80%	Washington	TLF
Mississippi	75%	Texas	100%	Colorado	TLF

TLF – Total Loss Formula

Reselling of Flood-Damaged Vehicles

States prone to flooding, such as Louisiana, Texas, and Florida, often have a higher incidence of vehicles with hidden water damage. Flood damage can significantly affect a vehicle’s performance, safety, and long-term reliability.

In 2017, Hurricanes Harvey and Irma impacted the used car industry significantly:

• Over 17,000 flood-damaged cars re-enter the resale market every week.
• Twenty-three percent (23%) end up with new owners.
• States like Florida and Texas mandate branding of affected cars as flood-damaged.
• Title washing allows some flood-damaged cars to be sold in other states with clean titles.

Weather, Climate, and Regional Risks

Certain states or cities may have higher risks for disasters, theft, or accidents, and dishonest sellers can hide a vehicle’s past by moving it between states. For example, vehicles from states with harsh winters and heavy use of road salt, such as Michigan, Ohio, and New York, are more prone to rust and corrosion. On the other hand, states with intense sun and heat, like Arizona, Nevada, and Florida, can cause damage to the paint, interior, and rubber seals. Be mindful of these factors when evaluating a used vehicle.

State Differences in Auto Insurance Laws

Auto insurance laws vary significantly across states due to factors such as vehicle theft rates, harsh climate conditions, and accident rates. States with high theft rates, like California, typically have stricter insurance requirements and higher premiums, while states with lower theft rates, such as Vermont, may have lower premiums and less stringent coverage mandates. Similarly, states prone to severe weather events, like Florida and Texas, often require more extensive coverage options and have higher premiums to cover the increased risk of weather-related damage. In contrast, states with milder climates generally have lower rates for comprehensive coverage.

Accident rates also play a crucial role, with states like New York and California having higher insurance premiums and stricter liability coverage requirements due to their high traffic density and accident rates. In contrast, states with lower accident rates, such as Wyoming, have lower premiums and may require less extensive coverage. Additional factors influencing state differences include population density, regulatory environments, economic factors, and the level of competition in the insurance market. Each state tailors its regulations to address the specific risks and needs of its residents, resulting in a diverse and complex insurance landscape across the United States.

Auto Insurance Requirements

• Most states require car owners to have auto insurance.
• New Hampshire and Virginia do not require it, but the at-fault driver is still liable.
• Some states offer alternative options like bonds or cash deposits.