What Sort of Laws Govern Salvage Vehicles?
While laws vary from state to state, the common thread with salvage title vehicles is that they have been claimed as a “total loss” by an insurance company. That means that the insurance company has paid out a substantial portion of the car’s value in a claim and subsequently sold their remaining interest in the vehicle to an auto recycling or recovery firm. The recovery firm then rehabs the car and offers it for sale back to the general market. In some states a salvage car must be submitted to a state inspection before it can be re-licensed.
