Vehicles acquire a salvage title after an insurer declares a car a total loss because of a collision, flood, fire, theft, or other serious damage. Read More: Types of Auto Insurance Quick Overview Before rebuilding approval, a salvage title car must pass inspection With a salvage title, resale values may fall 20% to 40% Permanent branding follows a salvage title after all repairs Afterward, you may face challenges with registration, inspections, and getting insurance.