A salvage title is assigned to a vehicle that has been severely damaged, totaled, or stolen and recovered. It indicates that the vehicle is no longer considered roadworthy and has been deemed a total loss by an insurance company.
When a vehicle is declared a total loss, the insurer typically pays out the vehicle’s actual cash value to the owner. The insurance company then takes possession of the vehicle and may sell it at auction, often to salvage yards or repair shops.
Vehicles with salvage titles cannot be legally registered for road use in most states. They may only be used for parts or as a rebuildable vehicle, subject to specific regulations and inspections.
At PSIC, we understand that accidents can happen, and sometimes, the damage to a vehicle may be so severe that it’s declared a total loss. In such cases, the vehicle may be assigned a salvage title.
If your motorcycle is declared a total loss due to a covered peril, such as a collision or theft, and you have comprehensive and collision endorsements, we’ll work with you to process your claim. As part of the process, we may apply the salvage clause, which allows us to take possession of the damaged motorcycle.
We’ll then work to recover the value of the vehicle, which may involve selling it at auction or salvaging parts. The proceeds from the sale may be used to offset the total loss payment you receive.
Please remember that the salvage title process can vary depending on local regulations and the specific circumstances of your claim. If you have any questions about this topic or the claims process, please contact your insurance agent.
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5515 E. La Palma Ave. Ste. 150, Anaheim, CA 92807
Copyright © McGraw Insurance Services, L.P., Delaware L.P., 5515 E. La Palma Ave. Ste. 150, Anaheim, CA 92807, License 0K06900 / National Producer No. 17486061 The insurance policy, not the contents of this website, forms the contract between the insured and the insurance company. The policy may contain limits, exclusions and limitations that are not detailed on this website. Coverage may differ by state.
Privacy Notice at Collection for CA employees
Last updated: June 27, 2023
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