- Some general points on Salvage title
Generally, Salvage title denotes that the vehicle has been damaged and/or deemed a total loss by an insurance company that paid a claim on it. Effectively, if the car was damaged to the point that the insurance company deemed the car to be a total loss, the car will then have a salvage title.
The amount of damage that is required for a car to be deemed a total loss varies from State to State. Some States mandate that a total loss should equal 50% of the car value, others can go as high as 95% – 100% of the car value, while other States allow the insurer to decide its threshold for a total loss.
A salvage vehicle cannot be legally driven on the road. Once the car has been repaired and declared roadworthy, it will get a rebuilt brand on the title.
Some states have “junk,” “scrap” or “dismantled” designation that prevents the most heavily damaged cars from being rebuilt and retitled. Some will issue flood- or hail-specific salvage titles. Some States will issue salvage titles to stolen vehicles. The exact definitions and terms vary by state, and many people use the terms interchangeably.
Sometimes you may hear a salvage title or rebuilt title referred to as a “branded title”.