If your car has been declared a "total loss" by your motor vehicle insurer after an accident, it simply means that your car now has "salvage vehicle status." Insurance companies will not pay to have your vehicle repaired due to overriding costs that exceed the market value of your car. At this stage, your insurance company will hand you a check based on the car’s true value, as determined by a trained claims adjuster.

While this problematic situation may seem a bit unfair, salvage laws were actually written to help protect consumers’ rights and alert them to potential dangers in the system. For example, when a car is declared a "total loss" it is sold to salvage buyers who in turn sell them to scrapping yards or recyclers. Depending on the extent of the damage, a salvage dealer will have these cars repaired and returned in good running condition back into your hands. Therefore, with your protection in mind, a state’s salvage insurance laws govern: 1) what constitutes a salvage vehicle? 2) What is a rebuilt salvage? 3) Buying a salvage vehicle; and 4) what your rights and protection are as a salvaged car owner in the state of Wisconsin?

1. What Constitutes a Salvage Vehicle?

These criteria are: When it has been used as public transportation Is less than seven years old and declared over 70% damaged Has been used as a police vehicle Was imported without proper U.S. safety and emissions standards Been salvaged

2. What is a "Rebuilt Salvage"?

A rebuilt salvage is one that has been purchased as a salvage, repaired and has passed an inspection by a State Patrol Salvage inspector.

3. Buying a Salvage Vehicle

In Wisconsin, a salvaged vehicle is tagged. You will know when you are buying a salvaged vehicle because the Department of Motor Vehicles (DMV) requires a note on the title, called a "brand" that makes the salvage status public.

4. What are your Rights and Protections for Salvaged Cars in the State of Wisconsin?

As a consumer you have rights and protections that reduce the chance of being stuck with a defective car. A dealer is required to disclose to the buyer as much information regarding the vehicle’s history as possible.

Savvy consumers who are aware of their state’s protection laws prudently select only reputable, licensed sellers of vehicles to transact business. Acting responsibly should also extend to private sellers by insisting on having the presence of a licensed mechanic ready to inspect your new purchase.

For more information regarding Eau Claire’s insurance laws for salvaged cars, contact the Wisconsin Department of Transportation.