SB 1920: Motor vehicle insurance; increasing certain percent damage required for title return. Effective date. - Oklahoma

Floor (House) → Floor (Senate) · 5 edits

MODERATE

This bill updates Oklahoma's motor vehicle salvage laws to increase the damage threshold for requiring a salvage title from 60% to 70% of a vehicle's fair market value. It also clarifies procedures for handling flood-damaged and recovered-theft vehicles, including specific requirements for title cancellations and inspections. These changes allow more vehicles to be repaired and returned to the road without being classified as total losses, while maintaining strict oversight for severely damaged cars.

Scope change

The bill expands the scope of vehicles eligible for repair and retention of a standard title by raising the damage percentage threshold, whereas previously vehicles with 60% or more damage were automatically flagged for salvage status.

REQUIREMENT

Increased the damage threshold from 60% to 70% of fair market value before a vehicle must be issued a salvage title.

Updated the repair cost threshold for non-insured vehicles from 60% to 70% of fair market value to determine if a salvage title is required.

Added a specific requirement for Service Oklahoma to stamp flood-damaged titles with 'Flood Damaged' and recovered-theft titles with 'Recovered Theft'.

Extended the deadline for junk dealers and insurers to return titles and license plates to 30 days from receipt of payment.

DEFINITION

Clarified the definition of 'Vehicle' to ensure it aligns with the most recent statutory references regarding model years.

Enrolled (final version) → Floor (House) · 3 edits

MINOR

The bill was reformatted from a Senate version to a House floor version, updating the session year to 2026. Substantively, the threshold for requiring a salvage title when a vehicle is damaged was increased from 60% to 70% of its fair market value, meaning fewer vehicles will be classified as salvage. Additionally, the definition of 'vehicle' was updated to include cars manufactured in the last 10 model years instead of the previous 11.

Scope change

The bill's applicability expanded slightly by raising the damage threshold, allowing more vehicles to be repaired and titled normally rather than as salvage. The definition of eligible vehicles was also adjusted to cover a slightly newer range of model years.

REQUIREMENT

The percentage of damage required to trigger a salvage title was increased from 60% to 70% of the vehicle's fair market value.

DEFINITION

The definition of 'vehicle' was changed to include models manufactured within the last ten model years, extending the previous definition.

TECHNICAL

The bill text was updated to reflect the 2nd Session of the 60th Legislature (2026) and reorganized for House floor review.

Engrossed → Enrolled (final version) · 5 edits · May 13, 2026

MODERATE

This bill updates Oklahoma's motor vehicle salvage laws to increase the damage threshold for requiring a title return from 60% to 70% of a vehicle's fair market value. It also clarifies definitions, streamlines the process for junking and flood-damaged vehicles, and adds specific inspection requirements for rebuilt vehicles.

Scope change

The bill expands the scope of vehicles eligible for title reissue without a salvage designation by raising the damage threshold, and clarifies the handling of flood-damaged and recovered-theft vehicles.

REQUIREMENT

Increased the damage threshold from 60% to 70% of fair market value before a vehicle owner is required to surrender their title for a salvage designation.

Added specific inspection requirements for rebuilt vehicles, including odometer checks for rollback and verification of part serial numbers.

Clarified that junk dealers and dismantlers must return titles and plates within 30 days, and that Service Oklahoma must preserve VINs for at least five years.

DEFINITION

Updated the definition of 'Vehicle' to specify that it applies to vehicles manufactured within the last ten model years.

Refined the definition of 'Fair market value' to explicitly include the actual cash value if it is greater than the guidebook value.

Introduced → Engrossed · 4 edits · Feb 24, 2026

MODERATE

This bill updates Oklahoma's motor vehicle salvage laws by raising the damage threshold required to force a title return from 60% to 70% of a vehicle's fair market value. It also clarifies definitions for 'fair market value' and 'vehicle' to ensure consistency with current statutes. These changes allow vehicles with moderate damage to remain titled normally while maintaining strict oversight for severely damaged or flooded cars.

Scope change

The bill expands the scope of vehicles that can retain their standard titles by increasing the damage percentage threshold, while maintaining strict salvage title requirements for high-loss vehicles.

REQUIREMENT

Increased the damage threshold from 60% to 70% of fair market value before a vehicle owner is required to surrender their title for a salvage designation.

DEFINITION

Updated the definition of 'Vehicle' to specify that it must be manufactured within the last ten model years, aligning with current statutory references.

Clarified the definition of 'Fair market value' to explicitly include 'actual cash value' as an alternative metric if the guidebook listing is unavailable.

Refined the definition of 'Vehicle' to remove the word 'automobile' from the National Auto Dealers Association guidebook reference, correcting a likely typographical error in the original text.

Motor vehicle insurance; increasing certain percent damage required for title return. Effective date.

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