What is Salvage value?

Salvage value is what a damaged car would sell for as it is, usually to a rebuilder, a parts buyer or at a salvage auction.

It matters in states that use the Total Loss Formula, and when an owner keeps a totaled car (the insurer usually deducts the salvage value from the payout).

Total Loss Formula

See how the referral program works The one-pager, the referral line, the AI assistant and the Appraisal Clause, set up for you.

More terms

Total loss Actual cash value (ACV)Appraisal Clause Umpire (appraisal)Total Loss Formula Total loss threshold Diminished value Comparable vehicle (comp)Fair market value (FMV)Loss of use Property-damage-only claim Referral agreement (between law firms)Demand letter

Updated 2026-11-01. General information, not legal advice; policy wording and state rules vary. TRUEclaims is not a law firm.