What is a Salvage Title? | RideSafely FAQ
Many people do not fully understand what a salvage title is or how a car gains a salvage title status. This confusion has led to a great deal of misinformation being spread regarding salvage vehicles and auctions . Knowing what causes a vehicle's title to be designated "salvage" can be the best introduction to the concept. Salvage titles are typically created by insurance companies when one of their policy holders gets into an accident. Usually, a person will get in a wreck or collision and the vehicle will sustain significant damage. The insurance company will then evaluate the extent of the damage in order to determine how much repairs will cost and how much their settlement will be. If the insurance company's estimate determines that the cost of repairs exceeds a great enough percentage of the car's actual value, they will declare the vehicle a "total loss" or "totaled" as opposed to paying for it to be fixed. This percentage varies according to state and region, but the range