What is a salvage title to a vehicle?

[gregor1234]

What is the name of your state? Delaware

This is an appeal for general information rather than opinions about a specific case…

A couple of years ago, someone ran into our van and caused nearly $4000 of damage but the van was only worth about $3500. The insurance company paid to have the van fixed but then we had to get something called a "salvage title." I understand that now that we have this salvage title, our insurance will pay no future claims for damage on this vehicle...

I can understand this because it seems that the insurance company has already paid out the entire worth of the vehicle. Is that truly the idea behind it?

What other implications are there to having a salvage title?

Are other insurance companies or other individuals also now not required to pay for any damages that they or their insured cause to this vehicle? Because the vehicle is "wrecked" already? Can the title somehow be reversed back to a normal title by spending money to revamp the vehicle?

If I am offered the option of a salvage title in a future situation can I negotiate to retain the regular title or is it a pretty cut-and-dried issue.

I know nothing. Please fill me in.

 

[Lynx 36]

Quote: "I can understand this because it seems that the insurance company has already paid out the entire worth of the vehicle. Is that truly the idea behind it?"

Yes, cancel you collision coverage as it will not be covered again. I'm surprised the insurance company fixed it in the first place.

Quote: "What other implications are there to having a salvage title?"

Not a lot, other than confirming through the title that the car was totalled out and re-built.

Quote: "Are other insurance companies or other individuals also now not required to pay for any damages that they or their insured cause to this vehicle? Because the vehicle is "wrecked" already? Can the title somehow be reversed back to a normal title by spending money to revamp the vehicle?"

Yes, they are still required to pay damages providing it doesn't exceed the value of the van.

No, the title will always remain a salvage title. Once it is totalled that is it.

Quote: "If I am offered the option of a salvage title in a future situation can I negotiate to retain the regular title or is it a pretty cut-and-dried issue."

It's cut and dry. If you repair a vehicle that is deemed a total loss you must have a salvage title on it. If the car is totalled in the future you probably will only get 50% of the value of your car since it does have a salvage title anyway. Even if you could get it changed insuarnce companies will still find out it had been totalled before. I run a VIN through my database on every claim I pay out no matter how minor. I can find out everything about the car from that.

 

[tabathadolley]

And you also will have a very hard time selling the car, and car dealers will not even consider taking the car as trade.