A salvage title is issued when an insurance company decides a vehicle is not economical to repair and pays out its value instead. The insurer takes ownership of the wreck, and the state brands the title so the damage stays on record.
The threshold for a total loss is set by state law and varies widely. Some states use a percentage of the vehicle's pre-accident value, often somewhere between seventy and ninety percent. Others apply a total loss formula that compares repair cost plus salvage value against actual cash value. A vehicle written off in one state might have been repairable in another.
A salvage-titled vehicle generally cannot be registered or driven on public roads until it has been repaired, inspected and re-titled as rebuilt.
Why it matters
Salvage is the single most consequential brand for value. Expect a large discount, expect difficulty financing, and expect some insurers to offer liability cover only.
How to check it
Look for the brand on a history report and then ask for the repair documentation. A salvage record with no accompanying repair invoices is a reason to be cautious.
Does this apply to the car you are looking at?
Run the VIN or plate and see what is actually on record.
Related terms
Definitions are general guidance, not legal advice. Title rules, total loss thresholds and inspection requirements are set by each state and change over time, so confirm the position with the motor vehicle agency for the state the vehicle is titled in before relying on it.