Salvage Buyback: Buying Back Your Totaled Classic: How it Works

My 1970 Chevelle was rear-ended. The repair estimate was $40,000. The Agreed Value was $50,000. The insurer totaled it. I wanted to keep the car because I could fix it myself for $15,000 using used parts. The insurer said, “Fine, but the salvage buyback price is $25,000.” They were gouging me on my own car.

Key Takeaways

  • You Have First Right of Refusal: In most states, the owner has the first right to buy back the salvage before it goes to Copart.
  • The Buyback Price: This should be the “Salvage Value” (what a junkyard would pay). Insurers often inflate this. You can negotiate it with comparable salvage quotes.
  • Title Branding: Buying it back usually triggers a “Salvage Title.” This permanently devalues the car by 30-50%.
  • “Cherished Salvage”: Some policies let you keep the car and the full check (no deduction).

The “Why” (The Trap): The Deductible Salvage

Standard Calculation: Payout = Agreed Value – Salvage Value – Deductible.
If they claim the wreck is worth $25k (because the engine is good), your check shrinks to $25k. You are left with a wrecked car and not enough cash to fix it.

[IMAGE: Calculation graphic: $50,000 Car – $20,000 Salvage Buyback = $30,000 Net Check]

The Investigation: I Called Them

I checked buyback policies.

1. Grundy

  • Policy: “Salvage Buyback” is often included.
  • Result: You get the Agreed Value, and you keep the car. No deduction.
  • Verdict: Excellent.

2. State Farm

  • Policy: They get a quote from Copart.
  • Result: They deduct that exact amount from your check. Copart prices are high in 2026 due to parts shortages.
  • Verdict: Expensive to keep your car.

3. Hagerty

  • Policy: “Cherished Salvage” (Add-on).
  • Result: Full payout + Keep car.
  • Verdict: Essential for sentimental builds.

Comparison Table

FeatureStandard PolicyPolicy with “Cherished Salvage”
Keep the Car?Yes (Purchase required)Yes (Automatic)
Payout AmountValue minus Salvage CostFull Agreed Value
Title StatusSalvage BrandSalvage Brand (usually)

Step-by-Step Action Plan

  1. Negotiate the Salvage Value: If they say the wreck is worth $20k, find sold listings of similar wrecks for $10k. Argue the price down to increase your payout.
  2. Check Title Laws: In some states (like FL or TX), if the car is over a certain age, you might be able to keep a “Blue Title” (clean) even after a total loss. Ask your adjuster.
  3. Enable the Rider: If you love your car, add the “Cherished Salvage” rider today. It costs ~$50/year and saves you thousands.
  4. Be Realistic: Do you really want to fix a bent frame? Sometimes taking the full check and walking away is the better financial move.

FAQ Section

Can I get full coverage on a salvage title car?
It’s hard. Most insurers only offer “Liability Only” or a reduced Agreed Value for salvage title cars.

What if the car is unrepairable (burn/flood)?
You can still buy it back for the VIN tags and VIN-stamped drivetrain to use in a re-body (legalities vary by state).

Does the buyback price include the tow fees?
Usually, yes. The insurer paid to tow it to the yard; you have to pay to get it out.

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