The criteria for determining when a salvage title is issued differ considerably by each state, province or territory.
In a minority of states and Canadian provinces, regulations require a salvage title for stolen or vandalized vehicles which are not recovered by police within 21 days.
[5] In general, a vehicle is deemed "salvage" when the insurer determines that the repair or replacement cost is in excess of approximately 70% of its market value at the time of the accident or theft.
In the state of Michigan, the issuance of a salvage title does not mean that the vehicle is also deemed a total loss.
[8] The exact percentage of value that triggers the decision to total the vehicle is guided by applicable laws and regulations.
In the US, motorcycles and cars which carry a salvage title may not be registered and driven on public roads in most states,[9] which affects resale value.
If the vehicle is rebuilt to a road worthy condition and has passed State inspection, the difference in price is 60-70% of "fair" KBB.
Further, vehicles imported to or exported from the United States and Canada are issued a clean title, even if they have been involved in an accident.