Salvage
When an Insurer has settled an insurance claim on badly damaged property, such as a car that has been written off after an accident, the remains of the car become the property of the Insurance Company. The remains are called salvage and the insurance company receives salvage rights over the property. As a point of interest, insurers that paid claims on cargoes lost at sea have the right to recover sunken treasures.
Salvage charges represents the costs incurred to recover damaged property. The insurance company is now the sole owner of the salvaged property as he has settled the insurance claim and the insured no longer has any legal interest in the salvaged property. The insurance company will sell the salvage and the amount received therefore is also referred to as salvage. This recovery is used by the insurer to off-set (reduce) part of the claim settlement it made to the insured.
Salvage is often sold to auctioneers who specialize in this type of business. They will remove the salvage and sell it at an auction. Some salvage management companies advertise the salvaged cars on the internet. Second hand spare part dealers are mostly interested in buying salvaged cars to recover any spare parts that they can still use.