Last updated 2025-10-15

Salvage designation criteria

An estimator must apply the appropriate salvage designation using the salvage designation criteria.

Applicability

Designate total loss vehicles as

salvage
dismantle purposes only (DPO), or
crush.

Important: None of the components of a flood damaged vehicle, or a harmful or toxic vehicle, can become donor parts for repairing or rebuilding other vehicles.

Exception: Donor parts not affected by the occurrence of a flood are useable.

Criteria

The table lists the criteria and designation applicable to each condition.

Condition	Criteria or damage description	Designation
Severe damage	More than 50 percent of a vehicle is determined to have severe or non-repairable damage, and any secondary damage (for example, damage transmitted to other areas of the vehicle) is included in the severe or non-repairable damage determination.	SALVAGE
Condition and age concern	An examination identifies excessive wear to areas of the vehicle’s body, and on the vehicle’s major mechanical components. Exception: Classic, collector and exotic vehicles are exempt of the criteria.	SALVAGE
Extensive rust	Existence of rust that would render a vehicle unsafe if repaired. Note: Extensive rust presents a safety factor to consider when determining a vehicle’s designation.	SALVAGE
Pre-existing damage	Existence of pre-existing damage (for example, significant old collision damage) that renders a vehicle unsafe. Note: Refer to procedure, Unsafe vehicle classification and criteria, for additional information.	SALVAGE
Previous rebuilt status	Previously re-built vehicle.	DPO
Fresh water damage	A vehicle that has fresh water damage does not have damage to major electrical system components, and does not have contamination due to harmful bio-hazard or toxic contaminants. Important: For additional information, refer to procedures Water damage considerations, and Major electrical components	SALVAGE
Flood damage - cleanable	A vehicle where the water line was at or above the bottom of the dash damage is to major electrical components, or presence of harmful or toxic contaminants can be cleaned and neutralized.	DPO
Flood damage - not cleanable	A vehicle with harmful or toxic contaminants present, that cannot be cleaned and neutralized.	CRUSH
Harmful or toxic contaminant exposure	A vehicle contaminated through exposure to harmful or toxic contaminants that cannot be adequately cleaned. Note: A vehicle exposed to harmful or toxic contaminants, must be inspected and cleaned, before a determination is made about the designation of the vehicle.	CRUSH Note: If contaminated parts can be removed cost effectively, then the designation could be changed to DPO.
Right-hand drive vehicles imported from Japan	Imported right-hand drive vehicles that are a total loss.	DPO
Cosmetic - $2,000 and under damage	Damage sustained to a vehicle is cosmetic. Then the damaged vehicle may be exempt from the definition of salvage. Note: Cosmetic damage is minor dents or scrapes, not structural or mechanical in nature, and limited solely to outer body or interior panels of a vehicle (for example, keyed paint scratches, and sheet metal hail damage). Important: Must not be an unsafe vehicle. For additional information, refer to procedures Unsafe vehicle, and Unsafe vehicle classification and criteria	EXEMPT NO CHANGE TO VEHICLE STATUS
Cosmetic - over $2,000 damage	Damage sustained to a vehicle is cosmetic. Then the damaged vehicle may be exempt from the definition of salvage. Note: Cosmetic damage is minor dents or scrapes, not structural or mechanical, and is limited solely to the outer body or interior panels of a vehicle (for example, keyed paint scratches and sheet metal hail damage). Important: Must not be an unsafe vehicle. For additional information, refer to procedures Unsafe vehicle, and Unsafe vehicle classification and criteria	EXEMPT DECLARATION OVER $2,000
Recovered theft - $2,000 and under damage	A recovered total theft vehicle was originally paid out as a total loss does not meet the criteria for SALVAGE, DPO, or CRUSH, and has damage under $2,000 Note: It can be sold with the prior vehicle status, that is, none.	NO CHANGE TO VEHICLE STATUS
Recovered theft - over $2,000 damage	A recovered total theft vehicle was originally paid out as a total loss does not meet the criteria for SALVAGE, DPO, or CRUSH, and has damage over $2,000 Note: It can be sold with the prior vehicle status, and a declaration over $2,000, if it is repairable.	DECLARATION OVER $2,000