Abstract

This study reviews Kentucky’s vehicle licensing and registration program, evaluates methods of motor vehicle title fraud, examines current anti-fraud mechanisms in Kentucky, reports on vehicle titling and anti-fraud efforts in other states, assesses Ohio’s vehicle inspection program, and develops a proposal for a new Kentucky rebuilt title inspection program. Researchers developed the proposal based on historical Kentucky vehicle registration and titling data, a survey of other states, and other information provided by Kentucky’s Division of Motor Vehicle Licensing and other agency partners. Kentucky historical data revealed consistently high numbers of salvage title applications as well as spatial concentration in rebuilt title issuance. The state survey revealed a need for Kentucky to hire more staff and provide additional training to improve fraud detection. The research team took the Ohio Motor Vehicle Inspection Program framework as a starting point and expanded it to include a proposed partnership with the Kentucky Community & Technical College System (KCTCS) to recruit inspectors. Further, the proposal includes competitive pay to incentivize inspectors to obtain ASE (Automotive Service Excellence) certification. The proposed rebuilt title inspection program offers a more robust alternative to the current system used by the Department of Vehicle Regulation (DVR), particularly methods for titling salvage vehicles as rebuilt. The proposed vehicle inspection program calls for a reorganization of DVR, a significant increase in inspection fees, and restricting vehicle inspections to seven dedicated facilities throughout the state. Establishment of the proposed program can help ensure all vehicles with rebuilt titles in Kentucky are roadworthy and safe.

Report Date

4-2024

Report Number

KTC-24-24

Digital Object Identifier

https://doi.org/10.13023/ktc.rr.2024.24

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