Salvage title

What it means

An insurer that declares a vehicle a total loss has the title branded. Depending on the state and the repairs, it may later be re-branded as rebuilt or reconstructed.

The brand affects value, insurability and sometimes what a state will register.

Brands generally follow the vehicle across state lines through the national title information system.

Why it matters

It matters when an estate sells a vehicle: the brand has to be disclosed, and the value is not what a valuation guide says for a clean title.

It also matters when a family inherits a vehicle repaired years earlier and does not know its history.

When you are likely to meet it

• When an estate is selling a vehicle.
• When a title shows a brand nobody can explain.
• When insuring an inherited vehicle.

How this varies by state

What triggers a brand, what the brands are called, and what a state requires before registering a rebuilt vehicle are all set by state law.

Related terms

• Bill of saleA written record that ownership of something passed from one person to another, with the date, the parties and the price.
• Branded titleA permanent mark on a title recording that the vehicle was once written off or badly damaged.
• Certificate of titleThe state-issued document that proves who owns a vehicle — and whose issuing state decides the procedure after a death.
• Fair market valueWhat a willing buyer would pay a willing seller, neither under pressure and both knowing the facts.
• RetitlePutting an asset into a new owner's name on the official record.
• Title searchA check of the public record for what is registered against a property or a vehicle — owners, liens, brands, claims.
• Vehicle identification numberThe unique code identifying a specific vehicle. Every title, registration and transfer form is matched against it.
• VIN inspectionA physical check that the vehicle's identification number matches its paperwork.

Sahvelo guidance that uses this

• Vehicle title transfer