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5 Reasons Why a Car May Bear a Salvage Title
If you are considering buying a used car in auto auctions online through online car auction
sites, you must have come across the term ‘salvage title.’ Are you curious to know about the
reasons why a car may bear a salvage title? Here are the top reasons why.
Reasons for a Salvage Title
1. CAR IS TOTALED
The term ‘Totaled’ is derived from the insurance term “total loss.” A car becomes totaled when
insurance companies determine that the cost of repairing the car damages is more than the actual
value of the car. Spending money on the repair of a totaled car is not always justified financially.
Hence, the insurance provider declares the car a total loss. In the majority of states, a car is
considered totaled when the car’s damage repair costs exceed 70% to 80% of the car’s actual
value.
2. DAMAGE FROM A NATURAL DISASTER
Another reason for a salvage title is when the car has been a victim of a natural disaster and
suffered damages. The insurance companies may decide that it is more practical to look for a new
car than to repair one and therefore insurance companies may omit a thorough checking of such
cars in natural disasters in many situations. Many of these automobiles that are retrieved after a
natural disaster don’t necessarily have significant damage, but as a safety measure, they are
issued a salvage title.
3. BEING STOLEN AND RECOVERED
When a car is stolen and doesn’t get recovered for weeks and months, then the car will be given
a salvage title. Those found within the timeline are returned to the owner. When a car is awarded
a salvage title for a reason other than damage, the title can be changed to a rebuilt title fairly
easily without many repairs, which enables the owner to drive the car legally on public roads.
4. CAR RESTORED IS ANTIQUE OR CLASSIC
A restored classic might have lost its title years ago. There’s a considerable likelihood that the car
was restored by replacing significant parts, such as the body, powertrain, or tr