How to Apply for a Salvage Title

Vehicles with severe damage are given salvage titles and sold as parts or scrap metal.

A salvage title is normally issued to cars that have been damaged to the point where the cost of repairs exceeds the value of the vehicle. Salvage titles are issued to wrecked vehicles, junked vehicles, vehicles with flood or fire damage and some vehicles that were stolen and recovered by the police after the insurance company had already paid the owner for their replacement. You can have a salvage title issued for a damaged vehicle in any state, though the process will vary slightly.

Things You'll Need

• Application for salvage title
• Proof of ownership
• Vehicle's tag and registration
• Insurance salvage notification

Instructions

1. Determine that the vehicle is, in fact, considered totalled by your state. The definitions for the damage that makes a vehicle a salvage vehicle varies by state. However, standards are typically that a significant number of major components have been damaged. Your insurance company should issue a statement that the vehicle is totalled. In some states, age alone is enough to qualify a damaged vehicle for a salvage title.

2. Gather all relevant documents you have pertaining to the vehicle and it's current condition. These should include your current, non-salvage title, proof of ownership of the vehicle, it's license plate and registration, any statement you may have received from the insurance company declaring the vehicle totalled, a list of damages and photographs of the damage.

3. Go to the Department of Motor Vehicles and fill out an application to receive a salvage title. Submit the application, all necessary documents and any processing fees to the DMV.

4. Wait to receive your salvage title in the mail. Vehicle titles often arrive two to three weeks after the initial application.

Tips & Warnings

• Some states require more documentation than others for declaring a vehicle salvage or issuing a salvage title. Contact the Department of Motor Vehicles to determine exactly which items you need to declare your vehicle a salvage vehicle.

• Once a vehicle is branded salvage, you will no longer be able to get a clear title for it in most states, even if the vehicle is completely repaired. Salvage vehicles have a decreased value and can be difficult to sell, finance or insure.

References

• Michigan Department of State: Salvage Titles
• Louisiana: How do I apply for a Salvage Title
• Nevada Department of Motor Vehicles: Nevada Salvage Vehicle Requirments
• California DMV: Vehicle Registration and Title

Resources

• Unofficial DMV Guide: Salvage Title