Salvage Title

A Salvage Title is a designation placed on a vehicle's title after it has been declared a total loss by an insurance company. Once a vehicle has a salvage title, it cannot be legally driven on public roads in most states until it is repaired and re-inspected, after which it receives a Rebuilt or Reconstructed title.

Related terms

Total Loss Threshold

The Total Loss Threshold is the percentage of a vehicle's pre-loss value at which an insurer must declare it a total loss. Thresholds are set by state law (statutory) or insurance company policy (contractual) and typically range from 65% to 100%.

Rebuilt Title

A Rebuilt Title is issued after a previously salvaged vehicle has been repaired and passed a state-required inspection, allowing it to be legally driven and registered. Rebuilt-titled vehicles are typically worth 20-40% less than equivalent clean-titled vehicles.

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