Just because you buy your vehicle at a salvage car auction doesn’t mean that it was involved in an automobile accident, although that is the most common cause for this type of title. Several reasons exist for the issuance of a salvage title including vehicle damage due to an accident, biohazard, flooding, hailstorm, fire, or theft.
Most vehicle accidents result in some type of damage to the vehicle. When the cost to repair the car is nearly as much as the value of the vehicle, it is often sold to a salvage dealer and listed as repairable after damage.
Flooding damage to a vehicle ranges from minor to severe, and it isn’t always listed as the reason for a salvage title. In some states, the “general damage” category encompasses flood damage.
The damage from a severe hailstorm can be devastating, causing the broken glass, flat tires, and dented and/or broken parts on the vehicle’s exterior. Not all states identify hail as the reason behind a salvage title, but many do.
If the car has been involved in a fire, damages can be extensive. Repairs to the car depending on the type of damage that occurred.
In the case of theft, many insurers have already reimbursed the car owner for its value before the vehicle has been retrieved. As a result, the car is salvaged and receives its title accordingly.