A salvage motorcycle title usually means that a motorcycle needs repairs that exceed a percentage of the motorcycle’s fair market value. This percentage varies from state to state, but most insurance laws require repair costs in a range from 75%-90% of the motorcycle’s normal listing value when in good condition for it to be considered a salvage motorcycle.
In a typical process, damage will occur, the motorcycle owner will file for insurance, and the insurance company will calculate the repair costs according to national averages. If they determine that the cost of repair exceeds their set threshold, they will declare the motorcycle a “total loss” or “totaled” as it is commonly called. A totaled motorcycle will then be sold to a salvage company. When that vehicle is purchased by a buyer, they must register for the motorcycle’s title as “salvaged”. From here the motorcycle has a salvage title. In nearly every state, this motorcycle salvage status is permanent regardless of whether or not the motorcycle has been completely repaired.