Motor Vehicle: Insurance Loss Notification
[O.S. Title 47 § 1105; 1111]

Insurance companies paying a claim for a loss where the cost of repairing the vehicle for safe operation on the highway exceeds sixty percent (60%) of the market value of the vehicle, or paying a claim for a flood-damaged vehicle as defined in 47 OS § 1105, must notify, in writing, both the record owner and the Oklahoma Tax Commission. 

47 OS § 1111(L) states, in pertinent part:

Any insurance company that pays a claim for a loss where the cost of repairing the vehicle for safe operation on the highway exceeds sixty percent (60%) of the market value of the vehicle or pays a claim for a flood-damaged vehicle as defined in Section 1105 of this title shall notify, in writing, the holder of the certificate of title of the requirements of this section and shall notify the Tax Commission of the payment of such claim. The notice shall include the estimated total damage percentage determination of the actual cash value made by the insurance company to repair the vehicle for safe operation on the highway. The insurance company shall also send a copy of the notification to the holder of the title.

This damage percentage is used by the Commission in determining the proper title type (i.e. Salvage or Junk) to be issued.  Flood Damage, when noted, will be reflected as a brand on the Oklahoma Certificate of Title.

• A Salvage title is required when the damage percentage is from 60% to 79%. 

• A Junk tile is required when the damage percentage is 80% or greater.

• A Flood Damaged brand is to be added, when applicable.

• • 47 OS § 1105 defines a Flood-Damaged Vehicle as a salvage or rebuilt vehicle which was damaged by flooding, or a vehicle which was submerged at a level to or above the dashboard of the vehicle and on which an amount of loss was paid by the insurer;

Please note, as outlined in the statutory language excerpted above, only damage impacting the roadworthiness of the vehicle need be considered in this notification to the Commission.  Cosmetic damage (i.e. hail) unrelated to roadworthiness should not be included in this damage computation.  Flood damage criteria is outlined immediately above.

Acceptable Insurance Company
Notification Letter Content

To be acceptable as Oklahoma Tax Commission notification pursuant to the referenced Oklahoma statutory requirements, insurance company damage notification letters must include:

• The VIN of the damaged vehicle

• The date of the loss

• The estimated total damage determination, expressed as a percentage of the actual cash value made by the insurance company to repair the vehicle for safe operation on the highway.As an example:  The cost to repair this vehicle for safe operation on the highway is estimated to be X% of its market value.

Notification letters may be directed to the Commission at the following address:

            Oklahoma Tax Commission
            Motor Vehicle Division Title Section
            PO Box 269061
            Oklahoma City, OK 73126

It is advisable to include a specific insurance company contact individual and/or department in the notification letter, in the event the Commission must contact the sender for additional information or clarification.

Questions regarding this insurance notification letter process may be directed to the Title Section of the Motor Vehicle Division at (in state toll free) 1-800-522-8165, extension 13535, or (direct) (405) 521-3535. Email inquiries may be directed to the general OTC email address at: otcmaster@tax.ok.gov.  To assist in proper routing, please reference the Motor Vehicle Division in your message.