Glossary

Salvage title

A branded vehicle title issued after a car is declared a total loss, warning future buyers of serious damage; it must be rebuilt to drive legally.

Also called: salvage certificate, branded title, salvage brand

A salvage title is a brand a state puts on a vehicle's title after it has been declared a total loss, usually by an insurer, because of a crash, flood, fire, theft or other damage. It replaces the clean title and tells future buyers and insurers that the car was once considered not worth repairing.

When a car is totaled, the insurer typically takes the title, pays the owner and applies for the salvage title before selling the car at auction. If the owner keeps the car, the owner usually applies instead. When a car must be branded depends on state law and its total loss threshold: Iowa uses 70% of value, while Texas treats a car as salvage when repair costs exceed its pre-damage actual cash value. In most states a salvage-titled car cannot be registered or driven on public roads until it is repaired, passes a state inspection and receives a rebuilt or reconstructed title.

Even after rebuilding, a car with a branded title usually sells for much less, and some insurers will cover it only for liability or only after an inspection. Before buying a used car, check a vehicle history report or a report from the federal National Motor Vehicle Title Information System (NMVTIS) for title brands. See salvage and rebuilt titles explained.

Last reviewed October 4, 2026

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Related terms

Total loss A car so badly damaged that repairs would cost more than it is worth, or more than a state threshold, so the insurer pays its value instead. Total loss threshold The point, set by state law or insurer practice, at which a damaged car is declared totaled rather than repaired, often a percentage of its value. Salvage value What a damaged or totaled car is worth as a wreck, usually the amount an insurer expects to get for it at a salvage auction. Owner-retained salvage Keeping your car after the insurer declares it totaled; the payout drops by the car's salvage value and the title is usually branded. Vehicle history report A record compiled from a vehicle identification number showing a used car's title brands, reported accidents, odometer readings and ownership history.

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Insuring a used car How to insure a used car from a dealer or private seller, the history checks to run first, and which coverages still make sense on an older car. The National Insurance Crime Bureau explained What the NICB is, who funds it, what its agents and data do, what it does not do, and how drivers can use its free VINCheck and fraud tip line. Salvage and rebuilt titles explained What salvage, rebuilt and nonrepairable title brands mean, the inspections needed to drive a rebuilt car, and how a brand affects insurance and resale. Run a VIN check before you buy a used car How to check a used car's VIN with NICB VINCheck, an NMVTIS report and NHTSA recalls, what each shows, and the signs of a cloned or flood car. Hail, flood and storm damage: filing a comprehensive claim How comprehensive coverage handles hail, flood, wind and falling-tree damage, what to do before and after a storm, and why flooded cars are often totaled. What happens when your car is totaled How insurers decide a car is a total loss, how state thresholds differ, what the settlement includes, and the paperwork from offer to payment.