{"id":353132,"date":"2017-02-09T15:10:58","date_gmt":"2017-02-09T20:10:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/injury\/car-accidents\/what-is-a-salvage-title.html"},"modified":"2025-09-30T09:40:49","modified_gmt":"2025-09-30T14:40:49","slug":"what-is-a-salvage-title","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/injury\/car-accidents\/what-is-a-salvage-title.html","title":{"rendered":"What Is a Salvage Title?"},"content":{"rendered":"\n
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What Is a Salvage Title?<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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A salvage title<\/span> is a vehicle title issued by the DMV<\/span> when an insurance company<\/span> deems a car a total loss<\/span> after an accident, theft, or natural disaster. It\u2019s a way of letting potential buyers know that the vehicle has suffered some sort of major damage.<\/p>\n\n <\/div>\n\n\n\n

Buying a used car<\/span> can be irritating and exhausting, but it\u2019s something that happens almost 40 million times a year in the U.S. Sometimes, a deal sounds too good to be true. In certain instances, you may encounter a vehicle with a salvage title<\/span><\/a> and not be exactly sure of what that means. A car with a salvage title<\/span> has sustained significant damage, usually due to a motor vehicle<\/span> accident.<\/p>\n

While vehicles with a salvage title<\/span> are typically much cheaper than other used cars<\/span><\/a>, purchasing one means driving a vehicle that suffered a good deal of damage. This article will explore the risks and benefits associated with a salvage title<\/span> vehicle<\/span> and explain precisely what a salvage or rebuilt title<\/span> means.<\/p>\n

If you buy a car with a salvage title<\/span> and the owner doesn’t disclose the vehicle’s history, you may have a legal claim. The best way to know for sure is to contact a local consumer protection attorney<\/a>.<\/p>\n

Salvage Titles<\/span>: Buyer Beware<\/h2>\n

Most jurisdictions issue a salvage title<\/span> when an insurance company<\/span> declares a vehicle a total loss<\/span> following a car accident. When the insurance carrier deems a car or SUV totaled, it pays the vehicle owner<\/span> the fair market <\/span>value<\/span><\/a> of the vehicle<\/span>.<\/p>\n

With a total loss<\/span> insurance claim, the vehicle owner<\/span> can choose to apply the insurance proceeds<\/a> to a new car or use them to fix their existing car. If they pay to repair the car, they can drive it themselves or attempt to sell it.<\/p>\n

Some buyers look for salvage-titled vehicles<\/span> because they’re often sold at a cheaper price than vehicles with a clean title<\/span><\/a>. Most salvage vehicles<\/span> sell for 20-50% less than a comparable car with a clean title<\/span>. However, buying one of these vehicles comes with inherent risks.<\/p>\n

How Do You Know a Vehicle Has a Salvage Title<\/span>?<\/h2>\n

A salvage title<\/span> indicates that an insurance company<\/span> has deemed the vehicle a total loss<\/span><\/a>. This means that the vehicle suffered enough damage to be declared not worth fixing by\u00a0insurance company<\/span>\u00a0metrics. Factors include the severity of the damage, the age and overall condition of the vehicle, and the value of the car in undamaged condition.<\/p>\n

In many cases, the previous owner<\/span> has gotten an estimate from a body shop<\/span> to determine the cost of repairs<\/span>. If fixing the car will cost more than it’s worth, they may decide to sell it.<\/p>\n

Whenever you buy a car from a private party<\/span>, you take the risk that the vehicle will have problems. Don’t take the seller’s word. Not only should you ask questions about the car, but getting documentation showing the vehicle’s history<\/a> is another necessity.<\/p>\n

Before buying a car from a private seller, request to see the car\u2019s title<\/span>. If an insurance company<\/span> has written the car off as a total loss<\/span>, you should be able to tell by the title. It will say “Salvage” on the Certificate of Title<\/span><\/a> if the vehicle has a salvage title<\/span>.<\/p>\n

Vehicle registrations<\/span><\/a> are not an indicator of whether a car has a salvage title<\/span>. The only way to know for sure is to check the title or use a service that can access the vehicle\u2019s history.<\/p>\n

Sellers Must Disclose That a Vehicle Has a Salvage Title<\/span><\/h2>\n

Consumer protection laws require that private sellers make specific disclosures about a car’s history when they advertise it for sale. This helps prevent sellers from fraudulently hiding facts about their vehicle that may not appear on a safety inspection<\/span><\/a>.<\/p>\n

Salvage titles<\/span> disclose a vehicle’s history. Every state has laws dictating when a title must display that a car was a total loss<\/span>. Many states require the issuance<\/span> of salvage titles<\/span> to identify stolen vehicles.<\/p>\n

Some of the states with this requirement include:<\/p>\n