Process & Workflow
Salvage
Salvage is the residual value an insurer recovers by taking ownership of and reselling damaged property it has paid a total-loss claim on.
Also known as: salvage recovery
When an insurer pays out a total loss (a written-off vehicle, for instance) it typically takes title to the wreck and recovers value by selling it for parts or scrap. Salvage and subrogation are the two main recovery levers in claims: salvage recovers value from the damaged asset, subrogation recovers cost from the at-fault party.