JSI 2.0 Is Live with Auto Data Direct

Since 2009, the junk, salvage, and insurance (JSI) industries have been reporting salvage vehicles to NMVTIS in order to comply with federal rules. Now the system has been upgraded to provide better, cleaner, and more meaningful data.

What are the changes and what does it mean to those who report?

There are just two changes in the reporting:

1. New Data Validations — Most fields now have specific validations, and if reported data does not fit these validations, the whole record will be rejected. For example, a state being reported will now include the jurisdiction’s official abbreviation (like CA for California). Testing the new validations revealed that as much as 10% of the currently reported data would be rejected.

For those manually entering their NMVTIS reports, it should be straightforward to comply. However, if using automated services like batch reporting or B2B/API, NMVTIS could reject reports that weren’t rejected before. Checking the completion logs will be very important to be sure all reports were received and accepted.

2. New Dispositions — Two new dispositions have been added: “Retained” and “Parts.” Retained is specifically for insurance companies that are reporting when vehicle owners decide to retain a salvage vehicle as part of the claims process.

Auto recyclers would use the Parts disposition when they buy vehicles for selling parts but want the option to later sell the whole vehicle to a rebuilder. With this disposition, the title to the vehicle will not be flagged by a state as “never to be titled again,” as with the Scrap disposition. Now, reporting businesses should only use Scrap if they never intend to resell the vehicle with a usable title.

If the reporting entity uses the Unknown, Parts, or Scrap disposition, they should make a second report when the vehicle/car body is sold, indicating either Sold or Crush. Once a VIN has been reported as Crush, businesses no longer need to report it, and no state will be allowed to title it. This change is being implemented because there has been a rise in rebuilders purchasing vehicles previously reported as Scrap to fix them and obtain salvage rebuilt titles. This trend is largely due to shortages of drivable vehicles. Several states are using NMVTIS to find Crush reports and cancel titles in their databases.

What do businesses need to do to remain compliant with the federal NMVTIS rule?

To remain compliant with the federal NMVTIS rule, it is important for businesses to verify that AAMVA is accepting their NMVTIS reports. Any business buying five or more vehicles a year must report those vehicles to NMVTIS within 30 days of purchase. In Georgia and Tennessee, the time line is shorter: 48 hours and 24 hours, respectively.

As of this writing, Auto Data Direct is the only data consolidator that has fully implemented these changes. ISO and Audatex have implemented the edit checks but not the new dispositions. AAMVA can accept the new dispositions.

Contact us if your business has any questions about the new JSI reporting.