In addition to washing away homes, roads and bridges, the September floods that blanketed some parts of the state also destroyed sedans, minivans and pickup trucks.

And those refurbished vehicles could easily be sold to consumers unaware of the prior damage because of a loophole in Colorado law that legislators at the Capitol are working to amend.

Under current law, a vehicle more than six model years old that is considered totaled by an insurance company can avoid being labeled a “salvage vehicle,” making it easier to resell once fixed. The “salvage” title means the cost of repairing the vehicle exceeds its overall worth. Older vehicles, which are more likely to be deemed salvage, aren’t subject to that classification in Colorado.

House Bill 1299, which the Senate Transportation Committee approved Tuesday night, would repeal the vehicle-age requirement so that the vehicle, no matter how old, would carry the salvage designation after insurers make a “total” payout.

“It’s really a matter of helping to protect the consumers who are buying cars that are damaged. On the surface they look OK, the title is clean, but the car has gone through extensive repairs that will likely not keep it running,” said John Medved, who owns five car dealerships across the state and who backs the proposed measure.

Because of the state’s more lenient salvage laws, flood-damaged cars from areas impacted by Hurricane Sandy have made their way to Colorado for clean titles, say proponents of the measure, which include groups such as the Colorado Automobile Dealers Association and the Colorado Independent Automobile Dealers Association.

A dozen states exempt older cars from the salvage designation, and Colorado has the earliest age, said Howard Nusbaum, administrator of the National Salvage Vehicle Reporting Program in Stamford, Conn. Moreover, Nusbaum said, the average age of cars on the road in the U.S. is now 11.4 years, meaning a majority would be exempt from ever having to carry a salvage designation.

Still, insurance groups such as Property Casual Insurers are lobbying against the legislation.

“We don’t believe it’s best for consumers,” said Kelly Campbell, vice president of the organization. “Customers who have older model vehicles with cosmetic damage — damage that is more than the value of the vehicle — they want to keep the vehicle and drive it.”

Proponents say the argument boils down to money for insurance companies, as salvaged cars are less likely to be fully insured. Plus, salvaged vehicles are more difficult to resell and command a lower price at auction.

Among them, Nusbaum argued that Colorado’s current law “is a travesty in terms of protecting the public. It is reprehensible and completely irresponsible.”

The measure cleared the Colorado House earlier this month on a bipartisan 43-22 vote.

Kurtis Lee: 303-954-1655, klee@denverpost.com or twitter.com/kurtisalee

Staff writer Aldo Svaldi contributed to this report.

Orginal article: http://www.denverpost.com/news/ci_25470414/effort-in-colorado-legislature-wo