The bill reorganizes provisions related to nonrepairable vehicle certificates within the New Mexico Statutes Annotated (NMSA) 1978 and introduces new procedures for insurance companies that pay total loss claims to vehicle owners. It amends Section 66-3-4 to remove references to nonrepairable vehicle certificates and establishes a new Section 66-3-4.1 that outlines the process for obtaining a nonrepairable vehicle certificate after a total loss payment. The new section specifies that prior to the sale or disposal of a nonrepairable vehicle, the owner or their agent must obtain a properly endorsed nonrepairable vehicle certificate from the department and deliver it to the purchaser within twenty days of payment.

Additionally, the bill allows insurance companies to request a salvage certificate of title or nonrepairable vehicle certificate if they are unable to obtain a properly endorsed certificate of title after making a total loss payment. The insurance company must provide evidence of attempts to contact all owners and lienholders, as well as proof of payment. The department is required to issue the requested certificate upon receipt of the necessary documentation and fees. The bill also includes provisions for indemnification of the department by the insurance company for any claims arising from the issuance of these certificates.