What does the insurer do with the salvage value after a total loss settlement?

In the context of automobile insurance and total loss settlements, when a vehicle is deemed a total loss, the insurer typically takes ownership of the damaged property, which includes the vehicle. This is a common practice where the insurance company pays the policyholder the actual cash value of the vehicle at the time of the loss, minus any deductibles, and then assumes ownership of the vehicle.

Once the insurer takes ownership, they can then decide how to handle the salvage. This may include selling the vehicle to a salvage yard or auctioning it off for parts or scrap value. The process allows insurers to recoup some of their losses from paying out the claim. While there are options available for reducing costs or maximizing recovery, the fundamental principle here is that ownership of the vehicle transfers to the insurer upon settlement of the total loss claim.