What Is a Salvage Title?
A salvage title is a designation applied to a vehicle that has been declared a total loss by an insurance company — typically because the cost of repair exceeds a threshold percentage of the vehicle's value (commonly 75–80%). The threshold varies by state.
What does a salvage title mean for the vehicle?
A vehicle with a salvage title cannot be registered for road use until it has been repaired and passes a state inspection. Once it passes, it may be issued a 'rebuilt' or 'reconstructed' title. A salvage brand on a title is permanent and transfers with the vehicle regardless of subsequent repairs.
What is a rebuilt title?
A rebuilt (or reconstructed) title is issued to a formerly salvage vehicle that has been repaired and passed a state inspection. The vehicle can be registered and driven legally, but the rebuilt brand remains on the title permanently.
Risks of buying a salvage or rebuilt title vehicle
Salvage or rebuilt title vehicles carry several risks: Lower resale value, difficulty obtaining full coverage insurance, potential hidden structural damage, and harder-to-sell status. Always have a rebuilt-title vehicle inspected by a qualified mechanic before purchasing.
Frequently asked questions
Can you finance a salvage title vehicle?
Most lenders will not finance a salvage title vehicle. Rebuilt titles are sometimes financed but at less favorable terms.
Can you get insurance on a salvage title?
Liability coverage is often available for rebuilt title vehicles, but comprehensive and collision coverage may be limited or unavailable. Check with your insurance provider.
Related guides
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Find Your State →Last reviewed: 2026-01-01 · Reviewed by the Car Paperwork editorial team · Independent resource · Not legal advice