How to Get a Salvage Title
Every vehicle owner has the option, after having their vehicle declared a total loss by the insurance company, to keep the vehicle instead. There are two reasons to do that: because you believe you can get a better return for the individual parts of the vehicle or because you believe you can repair the vehicle and make it road-worthy. It’s important to first understand that making that decision will affect the settlement offer from the insurance company. Since the insurer won’t get the salvage value, it will deduct that amount from the settlement. The process of getting a salvage title involves a considerable amount of paperwork and varies from state to state. Here is a general outline of what to expect.
Salvage certificate. In most states, the insurance company will immediately report to the Department of Motor Vehicles that the vehicle has been declared a total loss. That results in a salvage certificate, which makes it illegal to operate the vehicle on any roads in the state without first getting a salvage title. That is a requirement of the National Motor Vehicle Title Information System, a law passed in 2008, to limit the fraudulent resale of totaled vehicles.
Repair process. Make sure that you keep the invoices for any parts you use to repair your vehicle. Most states require those invoices along with pictures clearly showing all damage before the repairs were made. With this information in hand, often along with other paperwork, many states require that an inspection be conducted at a motor vehicle office. In Vermont, for example, there are two salvage inspection stations in the state. In addition to the photographs and invoices, Vermont requires a copy of the insurance company’s report declaring the vehicle a total loss must be provided as well.
New title. If the vehicle passes the inspection, a fee is required to receive a new, branded title. In most states, like North Carolina, the inspection is not related to emissions or safety issues. Instead, the inspection is designed to ensure there are no stolen parts involved. Regular brake, safety and emission inspections will also be required. In Vermont, the vehicle can be re-registered using the old license plate or you can request a new license plate. The title will specifically indicate the salvage status – Vermont includes a special “salvage” stamp and includes the phrase “rebuilt” on the title. In North Carolina, a totaled vehicle that passes inspection is issued a Rebuilt Certificate of Title.