AR HB2205

Redefines "salvage vehicle" to include water-damaged vehicles or those with damage totaling at least $4,000 and 70% of average retail value, and establishes "parts-only salvage vehicle" category for damage exceeding 120% of average retail value.

Changes "water-damaged" definition to mean damage that either saturated or contaminated electronic/electrical systems necessary for safe operation, or water that rose to cover the sill and entered the passenger compartment.

Allows salvage vehicle owners to either assign the title to a licensed dealer/wrecker or retain the vehicle if they surrender the certificate of title within 30 days and obtain a salvage vehicle title.

Permits insurers and licensed persons to delegate title surrender or office notification responsibilities to servicing organizations or licensed buyers of salvage vehicles.

Clarifies that an insurer can be an owner under salvage vehicle title provisions and makes branded titles permanent on vehicle records for life of the vehicle.