Salvage

Salvage is the residual value of a vehicle once an insurer has assessed it as a total loss, meaning the wreck itself still has some worth, typically sold to a scrapyard or to a buyer of usable parts.

In a Malaysian own-damage claim, the insurer commonly deducts the salvage value from the payout if you choose to keep the vehicle, or sells it and pays you the balance instead. The wider process is covered in claiming for vehicle damage.

Ask upfront which option applies to your policy, since keeping a written-off vehicle can also affect its registration status with the authorities.

A written-off motorcycle or car can sometimes still be repaired privately once salvage is settled, though its records may then be marked accordingly. Comparing the insurer’s salvage figure against a local scrapyard quote is a reasonable check before agreeing to it.