Salvage

Definition
Salvage is the title designation used when an insurance company purchases a vehicle that has been severely damaged (i.e., totaled) and then resells the vehicle. There are companies who buy these units, repair them and then resell the vehicle on the open market. A vehicle that has been written off will require a special inspection before it can be registered.

When you accept a payout on your total loss vehicle you may choose to retain ownership of the unit. As long as it has not been determined to be so badly damaged that it cannot be repaired (branding) then this is an option that might be offered by your adjuster. Usually you will accept 80% of the value and get to keep the vehicle. It is now your responsibility to repair the vehicle.

It's not just vehicles
Salvage can also mean the remaining value of property after a loss. The amount that is claimed is reduced by whatever value is left. This damaged property is not totally without value and could possible be resold or repaired.

Salvage can also refer to the property that is not damaged. What property that is removed without damage would be part of the salvage in a sewer back-up claim.

Insurance answer
If you have exercised your salvage option then be sure to adjust your values accordingly. The item that you have received payment for is now depreciated in value. Do not pay higher rates then the actual cash value of the unit. Talk to your agent or broker.