what is a salvage title

A salvage title is a type of vehicle title branding that indicates a vehicle has been damaged and/or deemed a total loss by an insurance company. This usually happens when the cost to repair the vehicle exceeds a certain percentage (often around 70% or more) of its market value at the time of the damage. Different states have varying criteria for issuing salvage titles. A vehicle with a salvage title typically has significant damage from incidents like collisions, floods, theft, or fire. The insurance company may pay out a claim for the vehicle, and the title is branded as "salvage" to indicate this status. The vehicle can sometimes be repaired and re-titled as "rebuilt salvage" after passing inspections, but caution is advised as some salvage vehicles may have hidden or irreparable damage. Importantly, a salvage title signals that the vehicle has little financial value in its current state, as the cost of repairs is often higher than the vehicle’s worth.