Owner-Retained Salvage Settlements
Keeping a written-off vehicle introduces two separate valuation questions: the vehicle’s pre-loss actual cash value and the salvage amount deducted when the owner retains it.
Two Values to Examine Separately
Actual cash value (ACV) reflects the vehicle’s relevant pre-loss value under the applicable policy. Salvage value is the amount attributed to the damaged vehicle in its salvage condition. A higher or lower figure in either part can change the owner-retained result.
What the vehicle was worth before the loss, as assessed under the applicable policy and evidence.
What the insurer attributes to the damaged vehicle when the owner keeps it, supported by the available salvage evidence.
The owner-retained amount also depends on applicable tax treatment, deductible and any other policy-specific items. Ask for the full written calculation rather than relying on a headline amount.
Documents to Ask For
- The insurer’s latest written settlement breakdown, showing ACV, applicable tax, deductible, salvage deduction and net settlement.
- Vehicle photographs and valuation material used in the assessment.
- The salvage support package, including available bids or other evidence used to determine retained salvage value.
What We Review
We examine the pre-loss vehicle description, available comparables, condition and equipment evidence, followed by the salvage methodology and the supporting material actually provided. Our conclusions depend on the file; a different outcome cannot be promised.
Before You Accept an Offer
Confirm whether any owner-retained option changes the policy settlement, title, repairs or future insurability. These matters depend on the insurer, policy and provincial requirements, and may require advice from the relevant professional.
Discuss an owner-retained settlementGeneral information only, not insurance or legal advice.
Practical Appraisal Guidance
Illustrative Owner-Retained Settlement Breakdown
The same vehicle can have a pre-loss value and a separate damaged salvage value. The insurer should provide a written calculation supporting each line.
Example pre-loss value
Hypothetical ACV: $20,000. Example applicable tax, if payable: $2,600.
Example deductions
Hypothetical deductible: $1,000. Example owner-retained salvage deduction: $4,000.
Illustrative payment
Using those assumptions: $20,000 + $2,600 − $1,000 − $4,000 = $17,600.