Understanding Vehicle Status on Alberta Registration Slips: “Repaired” and “Active”
When buying or selling a vehicle in Alberta, understanding the status of the vehicle’s registration slip is crucial. Two of the most significant statuses you might encounter are “Repaired” and “Active.” These designations tell you much about the vehicle’s history and can impact everything from insurance premiums to resale value. In this blog post, we’ll explain what these terms mean, how they’re evaluated, and what you should consider when dealing with vehicles with these designations.
What Does “Repaired” Status Mean?
A vehicle with a “Repaired” status on its Alberta registration slip has had a tumultuous past. This designation is assigned to vehicles previously written off by an insurance company, usually due to significant damage from an accident, fire, flood, or another event. After the vehicle is written off, it’s given a “Salvage” status, meaning it’s not roadworthy in its current condition. However, if the vehicle is repaired to meet safety standards, it can be inspected and potentially re-registered with a “Repaired” status.
What is a Salvage Vehicle?
In Alberta, a vehicle is determined to be “salvage” when it has sustained damage that is so severe that an insurance company deems it uneconomical to repair. This occurs after significant accidents, floods, fires, or mechanical failures. Once a vehicle is classified as “salvage,” the repair cost exceeds its market value (typically damages that are 80% or greater of the vehicles value), rendering it not roadworthy in its current condition. The vehicle cannot legally be driven and must undergo substantial repairs and inspections if it is to be re-registered and returned to the road. (Note; a vehicle involved in a flood cannot be repaired or re-registered in Alberta, and is deemed “non-repairable”).
How Is the “Repaired” Status Evaluated?
To change a vehicle’s status from “Salvage” to “Repaired,” the vehicle must undergo a rigorous inspection process. Here’s a general outline of the steps involved:
Repairing the Vehicle:
A licensed mechanic or autobody shop must repair the vehicle. The repairs must bring the vehicle back to a state where it is safe to operate on public roads.
Structural Integrity Inspection (If Applicable):
A structural integrity inspection is required for vehicles with significant structural damage. This involves checking the frame, chassis, and overall structural components to ensure they are correctly repaired.
Out of Province Vehicle Inspection (OOPVI):
If the vehicle was imported from another province, it must pass this inspection to ensure it meets Alberta’s safety standards.
Salvage Vehicle Inspection (SVI):
This comprehensive inspection checks all critical systems—brakes, lights, steering, suspension, etc.—to confirm they work correctly. (We opt out of performing these inspections since it is almost impossible to determine the workmanship that is behind panels and paint.)
Issuance of the “Repaired” Status:
Once the vehicle passes all necessary inspections, it’s issued a “Repaired” status, and it can be legally driven and re-registered in Alberta.
What Does “Active” Status Mean?
An “Active” status indicates that the vehicle has a clean structural and operational integrity record. You’ll see this status on the registration slip of a vehicle that has never been written off or deemed unsafe for use. Vehicles with an “Active” status are considered the gold standard for buyers because they have no history of significant damage or insurance write-offs.
Re-Registering a Salvage Vehicle in Alberta
If you own or are considering purchasing a vehicle with a “Salvage” status, you might be wondering how to get it back on the road legally. Here’s the process to re-register a salvage vehicle in Alberta:
Obtain the Salvage Vehicle:
Purchase the salvage vehicle, usually at a lower cost due to its current status. Remember, driving a salvage vehicle on public roads is illegal until it’s been repaired and inspected.
Have the Vehicle Repaired:
Have the vehicle repaired by certified professionals. Ensure that all necessary parts are fixed or replaced to meet safety standards.
Complete the Inspections:
Schedule and complete all required inspections (Structural Integrity Inspection, Salvage Vehicle Inspection, and out-of-province Vehicle Inspection, if applicable).
Submit the Documentation:
After passing inspections, submit all required documentation to an Alberta Registry Agent. This includes inspection reports, repair receipts, and any other relevant paperwork.
Register the Vehicle:
Once all paperwork is verified, you can re-register the vehicle under your name, and you will be issued a “Repaired” status on the registration slip.
The Cons of Purchasing a Vehicle with a “Repaired” Status
While vehicles with a “Repaired” status can offer cost savings, they come with several potential downsides that buyers should carefully consider:
Reduced Resale Value:
Vehicles with a “Repaired” status typically have a lower resale value than those with an “Active” status. This is because of the vehicle’s history of significant damage.
Higher Insurance Premiums:
Insurers may charge higher premiums for vehicles with a “Repaired” status, as these vehicles are perceived to have a higher risk of future problems.
Potential Hidden Issues:
Even with thorough inspections, some issues might only appear after purchase. These can include hidden structural damage or long-term mechanical problems not addressed during the repair process.
Limited Financing Options:
Most financial institutions are hesitant to provide loans for vehicles with a “Repaired” status, making it more challenging to secure financing.
Understanding the implications of a “Repaired” or “Active” status on an Alberta registration slip is crucial whether you’re buying, selling, or re-registering a vehicle. While a “Repaired” vehicle might seem like a bargain, it’s essential to weigh the potential risks and challenges that come with it. Always ensure that any repairs and inspections have been completed to Alberta’s safety standards, and consult with your insurance provider to understand how the vehicle’s status might affect your premiums.
Patience and attention to detail are critical for navigating the complexities of re-registering a salvage vehicle. By following the proper steps and ensuring all inspections are thorough, you can get a salvage vehicle back on the road—just be mindful of the long-term considerations that come with a “Repaired” status.
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