Salvage Value
The residual value of damaged property sold as scrap or rebuildable after a total loss.
When a vehicle is totaled, the insurer may deduct salvage value if the owner keeps the car, or the insurer sells salvage at auction. Title may be branded salvage or rebuilt depending on state.
Examples
Insured keeps the totaled truck; payment is ACV minus deductible minus $2,500 retained salvage value.
Common Misconceptions
Illegal to hide salvage history when reselling in many states. Underestimating cost to return salvage to roadworthiness.
Related Terms
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Back to Glossary Claims Pages AcademyThis definition is provided for informational and educational purposes. Insurance terminology may vary by jurisdiction, policy, and context. Consult a licensed professional for guidance specific to your situation.
