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Q

If you have a vehicle with a rebuilt or salvage title and it is totaled. What is the average amount that the payout is decreased compared to a vehicle with a regular title?


A

A vehicle with a rebuilt or salvage (branded) title are obviously worth less than a car that has a clean title and has not in an accident serious enough to find it be a total loss previously. Generally, a vehicle that has a salvage or rebuilt title can be worth thousands of dollars less than one that does not have a this type of title.

Auto and insurance industry sources report that the decrease in value of a vehicle that has a rebuilt or salvage title is typically between 20 percent up to 50 percent depending on the type of vehicle and its age.

There is not any specific percent or amount off of actual cash value (ACV) that all insurance companies use for calculating the value of a rebuilt or salvage title car it will be worth less than a car with a clean, clear title. The diminished value of the vehicle, due to the type of title it had, will thus most certainly decrease your settlement amount if you are getting actual cash value a car with a rebuilt title in an auto accident claim settlement.

One way to determine how much less a car with a branded title is to compare it to the same make and model with a clean title. You can contact local dealerships to find out what they would determine the price to be. This can usually give you a good sense of how much less the ACV would be on a car that was previously found to be a total loss but repaired and put back on the road than a car that had a clean title. An insurance adjuster for your insurance company should also be able to give you information on how much less a branded title vehicle is worth.


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