Salvage designation criteria

Summary of salvage designation criteria.

Context

When the vehicle is a total loss, the estimator must apply the appropriate salvage designation based on the vehicle condition.

Designate total loss vehicles as:

  • salvage
  • dismantle purposes only (DPO), or
  • crush.
Important: None of the components of a flood damaged vehicle, or harmful/toxic vehicle, can become donor parts for repairing or rebuilding other vehicles.
Exception: Donor part(s) not affected by the occurrence of a flood are useable.

Designation and criteria

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

Condition Criteria / damage description Designation

Severe damage
  • More than 50% of a vehicle is determined to have severe or non-repairable damage, and
  • any secondary damage (e.g., damage transmitted to other areas of the vehicle) is included in the severe or non-repairable damage determination.

DPO

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.

DPO

Pre-existing damage

Existence of pre-existing damage (e.g., significant old collision damage) that renders a vehicle unsafe.

Note: Refer to procedure, Unsafe vehicle classification and criteria, for additional information.

DPO

Previous rebuilt status

Previously re-built vehicle.

DPO

Fresh water damage

A vehicle that has:

  • fresh water damage
  • no damage to major electrical system components, and
  • no contamination due to harmful bio-hazard or toxic contaminants.
Important: Refer to procedure, Water damage consideration, and Major electrical components, for additional information.

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.
Note: Refer to important notation at start of this procedure.

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 (e.g., keyed paint scratches, and sheet metal hail damage).

Must not be an unsafe vehicle. Refer to procedures, What is an unsafe vehicle, and Unsafe vehicle classification and criteria, for additional information.

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 (e.g., keyed paint scratches and sheet metal hail damage).

Must not be an unsafe vehicle. Refer to procedures, What is an unsafe vehicle, and Unsafe vehicle classification and criteria, for additional information.

EXEMPT

DECLARATION OVER $2,000
Recovered theft ($2,000 and under damage)

A recovered total theft vehicle:

  • originally paid out as a total loss
  • does not meet the criteria for SALVAGE, DPO, or CRUSH, and
  • damage under $2,000 (can be sold with the prior vehicle status, i.e., none)

NO CHANGE TO VEHICLE STATUS
Recovered theft (over $2,000 damage)

A recovered total theft vehicle:

  • originally paid out as a total loss
  • does not meet the criteria for SALVAGE, DPO, or CRUSH, and
  • damage over $2,000 (can be sold with the prior vehicle status, and a declaration over $2,000, if it is repairable).

DECLARATION OVER $2,000
Parent topic: Salvage designation policy