Top Reasons Why an Automobile Might Get a Salvage Title in Canada

You’ve probably found the vehicle of your dreams while browsing used vehicles. In addition to appearing to be in mint condition, it also comes at an incredible price that appears too good to be true. Alas, it also comes with a ‘salvage title’. You then probably ask what that means exactly. Briefly, it means the vehicle has been in an accident and suffered damage that exceeds a particular percentage (normally 75 upwards) of its value. Your insurance company then claims it to be a complete loss. Although regulations vary according to state, let us look at the top common reasons your car might get a salvage title.



Your car will get a salvage title if it has been totaled. This is when your insurance company has claimed it as a total loss. The insurance company claims it as a complete loss when the cost of repairing damage to the car exceeds a specific percentage of the vehicle’s value. The regulation for how much that will is differs, from one state to another in Canada, but 75% is the national standard.


Natural Disaster

This is when your car has sustained some kind of damage in a natural disaster. Such cars are normally removed from circulation. But some of them make it and slip through the cracks in the system. When such cars get to slip through the cracks, they then get a salvage title.


Stolen Cars That Get Recovered

Sometimes, cars get stolen and they are gone forever. But at other times, they get stolen and are recovered at a later date. If the original car that was stolen is later found after it had already been replaced by the insurance company, it gets written off as a total loss. The recovered car then gets a salvage title before being sold out.


Aftermarket Parts

There are some cars that have had a substantial amount of aftermarket components (floor plan, the motor, cowling and so on) fixed onto them. Such cars might be considered worthy of getting a salvage title.


Kit Cars

These are cars that mix varying parts from various other popular models. This is done most times to create a customized vehicle. Even though the customized vehicle would certainly result from the mix, it could also get a salvage title.


Sold For Spare Parts

In certain states of the nation, salvage title vehicles are not permitted on the roads, and they are not even allowed to be rebuilt. Some car owners that happen to be savvy can, nevertheless, still sell the car. But they do not sell it to users intending to ride it. Instead, they sell such cars to people that will break them down and use them for parts.


Antique or Restored Classic

Classic cars normally lack original titles to call theirs. Those that do, still often need considerable aftermarket parts to restore them. You must keep all bills of sale and receipts for every main part you fix on the car if, you have plans of restoring it.


No Re-title

Some car owners simply forget to re-title their vehicles. Such vehicles are also among those that could get a salvage title.


Although the regulations that apply vary from one state to the other in Canada, these listed reasons are the major ones that could make your car get a salvage title within the Canadian nation.



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