Vehicle Damage Disclosure Statement Law and Legal Definition

Some states require a vehicle damage disclosure statement to be completed for certain transactions. Typically, the amount of damage to a motor vehicle is determined by adding the retail value of all labor, parts, and material used in repairing the damage. When the retail value of labor has not been determined by a purchase in the ordinary course of business, for example when the labor is performed by the owner of the vehicle, the retail value of the labor may be presumed to be the product of the repair time, as provided in a generally accepted autobody repair flat rate manual, multiplied by a defined hourly rate. Vehicle damage disclosure statement laws vary by jurisdiction, so local laws should be consulted for specific requirements in your area.

The following is an excerpt from a state statute goverining vehicle damage disclosure statements:

"(i) record on the vehicle damage disclosure statement the:

  1. date of the inspection;
  2. description of the motor vehicle including its vehicle identification number, make, model, and year of manufacture;
  3. owner of the motor vehicle and name of the lienholder, if any, shown on the salvage certificate; and
  4. major damage to the motor vehicle requiring repair or replacement;

(ii) indicate that the motor vehicle may qualify for an unbranded title if the major damage is repaired or the damaged part is replaced;
(iii) sign the vehicle damage disclosure statement and attest to the information's accuracy;
(iv) indicate whether an interim inspection of the motor vehicle damage repairs is required and which repairs require inspection prior to completion of repair work;
(v) give to the owner a copy of the vehicle damage disclosure statement and deliver or mail a copy of the statement to the lienholder, if any, shown on the salvage certificate; and
(vi) file the original vehicle damage disclosure statement with the Motor Vehicle Enforcement Division.

(6) (a) Upon receipt by the Motor Vehicle Enforcement Division of notification from a certified vehicle inspector that a motor vehicle has had a prerepair inspection, the Motor Vehicle Enforcement Division shall make a record of the inspection.
(b) Any subsequent prerepair inspections shall be disregarded by the Motor Vehicle Enforcement Division in evaluating the major damage to the motor vehicle and the repairs required.

(7) A person who repairs or replaces major damage identified by a certified vehicle inspector on a motor vehicle in accordance with Subsection (1) shall:
(a) record on the vehicle damage disclosure statement:
(i) a description of the repairs made to the motor vehicle including how they were made; and
(ii) his signature following the repair description with an attestation that the description is accurate;
(b) obtain the signature of the certified vehicle inspector who performs an interim inspection, attesting that the repairs identified for interim inspection were satisfactorily completed;
(c) file the original vehicle damage disclosure statement containing the repair information with the Motor Vehicle Enforcement Division; and
(d) give a copy of the vehicle damage disclosure statement to the owner."