An insurance or fleet company may declare a vehicle a total loss if the repair costs exceed around 75% of its value before the damage occurred, or if the vehicle is stolen and not recovered. This threshold can vary depending on the company. It’s important to note that not all vehicles classified as total losses receive a branded title from the DMV. This can happen when the insurance company’s criteria for a total loss differ from the DMV’s standards for issuing a branded title.

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A salvage title is given to a vehicle considered "distressed" when one or more key components are severely damaged, destroyed, stolen, or missing, with repair costs amounting to between 75% and 91% of the vehicle's pre-damage value. The vehicle owner’s insurance provider determines the extent of the damage.

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In these cases, a regular title is replaced with a salvage title, which is typically orange and includes the vehicle’s color and details of non-salvageable major parts.

A vehicle with a salvage title cannot be legally driven or registered until it is inspected and recertified by a qualified officer, after which it can be retitled.

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A scrap title is issued when the cost of repairing significant vehicle components (such as the engine, frame, or doors) exceeds 91% of the vehicle’s pre-damage value. In Michigan, a scrap title is red and marked with "Scrap Title" at the top, distinguishing it from the regular green title. Once a scrap title is issued, the vehicle can only be used for parts or scrap metal and cannot be retitled or returned to the road using its original vehicle identification number.

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For more title information visit:  https://www.michigan.gov/sos/vehicle/titleses