What Is a Salvage Retention Title?

After a vehicle is damaged in an accident or stolen and determined a total loss, an insurance carrier may claim it as “salvage” if the repair costs exceed the vehicle’s worth. A salvage retention title is what often allows policyholders to retain the damaged vehicle after an insurance carrier has deemed it as “salvage”.  

How to obtain a salvage title

A salvage retention agreement may need to be in place in your insurance policy to keep your vehicle. However, some policies may allow you to ask for retention after an accident.

Once the salvage retention request has been made, most insurance companies create a salvage retention title, which may require two types of classifications, called brands. The primary brand tends to indicate the policyholder is keeping the salvage vehicle and why it’s considered salvage. The secondary brand often indicates why the insurance carrier has declared the vehicle a total loss.

Once the title is established, insurance companies may start a claim process and subtract the money the salvaged car could have earned (as scraps or parts) from your claim.  

However, this situation may involve more fees, so it may be important to read your insurance policy carefully.

Why someone might choose salvage retention

There are different reasons a person may want salvage retention. Some may want the remains of their car for sentimental reasons. For instance, it may be their first car or a car that belonged to a late family member.

Others may retain it because they see the value of putting in the time and money to get it repaired. Someone may buy a salvage title vehicle because they think they may gain more money for scrap than the insurance carrier offered.  

Important considerations

If you choose salvage retention, it may be crucial to understand that there could be future implications. Depending on where you live, the vehicle may have to pass an inspection after repairs before being allowed back on the road.  

Finding an insurance carrier that will cover a salvaged car can also be difficult. If you do find insurance, you may experience higher premiums due to the salvage title.

If you have any questions about what salvage retention titles are or how they work, it may be helpful to talk to your insurance agent.  

Learn more about policy options

Infinity Insurance Agency, Inc. can assist you in finding the right car insurance policy for your unique needs. We work with numerous providers so you can choose the best rate for your budget.  

Get a free online quote today or call 1-855-478-3705 to speak with our experienced, Spanish- bilingual team.  

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