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🚗 '''Salvage title''' is a designation applied to a vehicle that has been declared a [[Definition:Total loss | total loss]] by an [[Definition:Insurance carrier | insurance carrier]], typically because the cost of repairs exceeds a specified percentage of the vehicle's [[Definition:Actual cash value (ACV) | actual cash value]]. In the context of [[Definition:Auto insurance | auto insurance]], a salvage title serves as a permanent brand on the vehicle's title record, alerting future buyers, insurers, and regulators that the vehicle was once deemed uneconomical to repair. The threshold for a total loss declaration varies by U.S. state — commonly ranging from 60% to 100% of the vehicle's pre-loss value — and equivalent branding systems exist in other jurisdictions, though the terminology and regulatory mechanics differ.

⚙️ When an insurer settles a [[Definition:Total loss | total loss]] claim, it typically takes ownership of the damaged vehicle through [[Definition:Subrogation | subrogation]] or the [[Definition:Salvage | salvage]] process and sells it — often at auction through platforms like Copart or IAA — to salvage buyers, rebuilders, or parts recyclers. The state motor vehicle authority issues a salvage title to reflect the vehicle's status. If a salvage-titled vehicle is subsequently repaired and passes a state-mandated safety inspection, it may receive a "rebuilt" or "reconstructed" title, but the salvage history remains part of the vehicle's record. From an [[Definition:Underwriting | underwriting]] standpoint, many insurers restrict or decline comprehensive and collision coverage on salvage-titled or rebuilt-titled vehicles due to the difficulty of accurately assessing their post-repair value and the elevated risk of latent defects. Agreed-value endorsements or specialty policies from niche carriers may be required.

⚠️ Salvage titles carry significant implications across the insurance value chain. For [[Definition:Claims management | claims]] departments, the decision to total a vehicle versus repair it is a key cost-control lever, and proper handling of salvage recovery directly affects the insurer's net [[Definition:Incurred loss | incurred loss]]. Salvage auctions represent a material revenue stream — recovering even a fraction of the vehicle's pre-loss value can meaningfully reduce [[Definition:Loss ratio | loss ratios]] on auto books. For consumers, the presence of a salvage brand dramatically reduces a vehicle's resale value and limits insurance options, making transparency about vehicle history essential. Title-washing — the practice of re-registering a salvage vehicle in a lenient jurisdiction to remove the brand — remains a persistent fraud concern, and [[Definition:National Insurance Crime Bureau (NICB) | industry databases]] and VIN-checking services play an important role in combating this practice.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Total loss]]
* [[Definition:Actual cash value (ACV)]]
* [[Definition:Auto insurance]]
* [[Definition:Subrogation]]
* [[Definition:Salvage]]
* [[Definition:Loss ratio]]
{{Div col end}}

Definition:Salvage title - Revision history

PlumBot: Bot: Creating new article from JSON