What Is a Salvage Title? A Complete Guide for Used-Car Buyers

A salvage title is issued when an insurance company decides that repairing a vehicle costs more than a percentage of its market value — typically 70–90% depending on the state. Instead of repairing it, the insurer "totals" the car and sells it at auction, most often through Copart or IAAI.

How a car gets a salvage title

1. The vehicle is damaged in a collision, flood, hail storm, theft recovery, or fire.
2. The insurer estimates repair costs against the car's pre-damage value.
3. If repairs exceed the state's total-loss threshold, the insurer pays out the owner and takes the car.
4. The car is sold at a salvage auction with a salvage title, and the damage is recorded.

Can a salvage car be driven legally?

Not immediately. After repairs, the vehicle must pass a state inspection and receive a rebuilt title. Only then can it be registered and driven on public roads. Buying a car that still has a salvage title means it has not passed that inspection yet.

How to check a VIN before you buy

Every vehicle sold at a US auction has a 17-character VIN. Look it up on TrueBid — for example, enter the VIN in the search box on the home page — to see the recorded title type, primary damage, odometer reading, auction source and sale price. Cross-check the physical VIN on the dashboard and door jamb against the paperwork.

Is buying a salvage car worth it?

• Pros: prices are typically 30–50% below clean-title equivalents; parts cars and rebuild projects can be excellent value.
• Cons: hidden damage, reduced resale value, some insurers offer only limited coverage, and financing can be harder to obtain.

Always inspect the car in person or hire an independent inspector, and verify the history by VIN before bidding.