The US Justice Department has established a national database designed to deter auto theft and fraud. The database – National Motor Vehicle Title Information System (NMVTIS) – has already accounted for more than 9 million salvage records.
The system was established to help protect customers from unknowingly buying a car that was salvaged or scrapped in one state, but retitled in another state without the same designation like “salvage,” “rebuilt” or “flood.” Some cars that were flooded might get a salvaged designation in one state, but not another. More than 1 million vehicles are stolen annually and many get “cloned” titles in new states.
Thus far, four states and the District of Columbia missed a Jan. 1 deadline and have not yet sent their data to the federal government. When all states are participating, the program is predicted to eliminate $4 billion to $11 billion a year in fraud.
Through the new database, states are able to check the system before issuing a new title for a vehicle, to make sure the vehicle isn’t stolen or wasn’t fraudulently reported as stolen, or marked as salvaged or scrapped elsewhere. In addition to the state data, the government database, run jointly with the American Association of Motor Vehicle Administrators, is getting records from insurance companies, auto recyclers, junkyards and salvage operators.
