If you have a vehicle that has been in an accident, stolen, or has sustained damage, it will be necessary to have it assessed. In the event that the cost of damage surpasses the value of the vehicle, you have a salvage car. The insurance company will take possession of the vehicle, and you are issued a salvage title.
Sometimes when a car is considered salvage it will be reduced to parts which can be sold as export. Those that don’t export can then be taken to salvage yards or otherwise disposed of. Normally, though, the entire vehicle is taken to a salvage yard and disposed of there entirely.
When a car is deemed totaled, the insurance company will typically reimburse the owner the amount the vehicle is worth. Since this takes depreciation into consideration, it doesn’t guarantee the amount will be enough to cover anything still owed on the vehicle.
Just because a vehicle has been classified as totaled doesn’t mean there is absolutely no hope. If it’s worth the expense, you can have it restored. When this is complete, you must take the vehicle in for an inspection, and, once passed, you will be issued a restored salvage title. This alerts all future owners that the vehicle has sustained significant damage so they are aware of the potential risks involved in such a purchase.
If you have a salvage car, you should carefully consider your options. If restoring it is something you’re interested in pursuing, take your time and get an array of quotes to compare. You may find that the repair costs are more than it would cost to purchase a used car of similar quality to what your salvage vehicle used to possess. Furthermore, when the time does come to buy a new car in the future, consider how difficult it may be to sell the car