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BMV > Titles > Salvaged Vehicles Salvaged Vehicles

A salvage title is required for a motor vehicle, motorcycle, semi-trailer, or recreational vehicle that is wrecked or damaged, flood damaged, or lost or stolen.

Wrecked or damaged

  • An insurance company has determined that it is economically impractical to repair the wrecked or damaged motor vehicle and has made an agreed settlement with the insured or claimant. An insurance company can make an agreed settlement with the claimant and not have to brand the vehicle as salvage if the vehicle is economically practical to repair (as long as the repair cost is less than 70 percent of the fair market value at the time of the incident); or
  • The cost of repairing the wrecked or damaged motor vehicle exceeds 70 percent of what the fair market value was immediately before the motor vehicle was wrecked or damaged.

Flood damaged

  • A vehicle that has been acquired by an insurance company as part of a damage settlement for water damage; or
  • A vehicle that has been submerged in water rising over the door sill, entering the passenger or trunk compartments, and exposed to water any electrical, computerized, or mechanical component. "Flood damaged" does not include a vehicle that an inspection by authorized personnel determines has no electrical, computerized or mechanical components damaged by water; or has one or more electrical, computerized, or mechanical components damaged by water which have been repaired or replaced.

Applying for a salvaged title

The BMV does not require an application for a salvage title on any vehicle over seven years old. However, the BMV will issue, upon request, a salvage title for any vehicle, no matter the age of the vehicle. The BMV requires a salvage application on any motor vehicle manufactured within the last seven model years, including the current model year. Since model years start at different times of the year and vary from manufacturer to manufacturer and model to model, the BMV uses January 1 as the starting date for all model years. Once a vehicle is branded as "salvage," it will always maintain that title, except as noted with a stolen vehicle that has been recovered theft. For example, the owner of a salvage vehicle with a model year of 1992 who applies for a duplicate title will receive a duplicate salvage title even though the vehicle is older than seven model years. It is only when a regular title is being considered for a salvage title that the seven year rule is applied.

As proof of ownership for a salvage vehicle, the BMV issues a certificate of salvage title. An individual buying a salvage vehicle must:

  • Apply for salvage title;
  • Surrender the motor vehicle’s original certificate of title;
  • Complete a Salvage Title Affidavit - State Form 49891; and
  • Pay the appropriate fee in accordance with Indiana Code 9-29-4-6.

Dealers have a duty to disclose vehicles with a salvage or rebuilt history. Indiana's salvage law applies to vehicles, motorcycles, semis and recreational vehicles that are no older than seven model-years from the current model year. If you are buying from a car dealer or a person who sells at least five vehicles a year, the seller has a legal duty to inform you of the previous salvage or rebuilt condition in writing before you purchase the vehicle.

If you are not informed in writing about a purchased vehicle's salvage or rebuilt condition, or if you purchase a vehicle that should have "salvage" or "rebuild" on its title, you may file a lawsuit to recover your actual damages and any attorney fees and costs.

Still have questions? Contact the BMV

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