What is a Salvaged Automobile in the state of Nevada

First of all, what exactly qualifies as a salvage vehicle? A salvage vehicle is one that is badly damaged and has been declared (1) a total loss, (2) non-repairable, or (3) flood-damaged. Let’s explore each of these terms a little more closely.

A “total loss” is defined as any vehicle that us so badly damaged that the estimated repair cost (not to include painting) is over 65% of the vehicle's fair market value right before it was damaged. Please note that for older automobiles with a Blue Book value of only a few hundred dollars, it may take very little damage for it to be considered a total loss.

A “non-repairable” vehicle is one that has been burned or damaged beyond a restorable condition. Such a vehicle now only has value as a source of spare parts and scrap metal. It is important to note that according to Nevada state law, such a vehicle may NOT be repaired and restored to an operating condition.

Finally, a “flood-damaged” vehicle that has been submerged in water deep enough that water has entered the passenger, engine compartment, or trunk and (this is the important part) come into contact with the electrical system.

There is one other aspect of the definition of a salvage vehicle that you should be aware of: a salvage vehicle is any vehicle that the state of Nevada has issues an orange-colored Salvage Vehicle Title to. In other words, if you have a salvage vehicle, even if you repair it and restore it to a safe operating condition, it is still technically a salvage vehicle until you get the vehicle’s title changed with the state.

So let’s say you’ve been in an auto accident, your insurance company declared your car to be a total loss, and it is now technically a salvage vehicle. According to Nevada state law, a salvage vehicle cannot be operated on any public street. So what can you do with it?

Well, first (and perhaps easiest for the average car owner), you can transfer ownership of the salvage vehicle to your insurance company—it then becomes their problem to dispose of it. You could also sell or give the salvage vehicle to a DMV-licensed automotive institution, such as an automobile auction, salvage pool, auto wrecker, auto rebuilder, or auto dealer. You can NOT sell the salvage vehicle to a private party without first obtaining a Salvage Vehicle Title for the state of Nevada.

If you do transfer your salvage vehicle to your insurance company or a DMV-licensed institution, you can still keep the license plates-in fact, you have to. You can transfer the license plates to another vehicle (must do so within thirty days), or return them to the DMV for a full or partial refund, or for a credit toward another vehicle registration.

Your final option is to rebuild the salvage vehicle and restore it to operating condition. Before you can even start the repair work, the first step (for any vehicle newer than five years old) is to bring it to a DMV Inspection Station, and obtain an Authorization for Vehicle Restoration. You don’t need to do this if the vehicle is older than six years old. Next, once you’ve completed repairing and rebuilding the vehicle, you must obtain a Certificate of Inspection from a Nevada-registered garage or body shop declaring it safe for road use. Finally, you have to change the car title from an orange-colored Salvage Title to the blue-colored standard Vehicle Title before it can be sold and this title would be branded, with the word rebuilt or other suitable word per Nevada DMV. The brand cannot be removed.

We hope this article has helped you identify a salvage vehicle and know what you can do with it. Always be careful, and check out the Nevada DMV’s website for more legal information at Nevada DMV . Remember, violating laws regarding salvage vehicles is a serious felony offense. Nevada wants to keep any vehicle that might not be safe to drive OFF the roads.

NOTE: This article is not legal advice, its your responsibility to seek out legal advice from a relevant lawyer should you need it.