Delaware Vehicle History — Salvage Certificates and Dealer Brand Disclosure (Reports from $4.99)

Delaware ties salvage status to a total-loss insurance settlement and sends every rebuilt car past the Delaware State Police Auto Theft Unit. Dealers must have buyers sign a disclosure when the title will be branded Reconstructed, Salvage/Rebuilt Salvage, Flood Damaged or Previous Taxi.

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US-DE
Delaware

Official vehicle-registry authority: Delaware Division of Motor Vehicles (DMV)

Why Delaware is different

Delaware's salvage process is in 21 Del. C. §2512. When a Delaware-titled vehicle is transferred as salvage because of a total-loss insurance settlement, the insurer or its agent must send the title to the DMV within 30 days of the settlement, and the DMV issues a salvage certificate as proof of ownership. If the owner keeps the car, the insurer must either do this itself or require the owner to obtain the salvage certificate before paying. The statute names no damage percentage, so the insurer's total-loss decision is what starts the process.

A salvage car cannot be driven until it has been reconstructed, inspected by the Delaware State Police Auto Theft Unit, passed the Delaware safety inspection and been retitled, according to DMV regulation 2283. The Auto Theft Unit expects the salvage title in the applicant's name, a bill of sale or insurance settlement letter, color photos taken before repairs, dated receipts for parts (with donor VINs for used parts) and proof of identity. Repairs done by a previous salvage owner are not approved. Inspectors then issue the MV214 Application for Title.

At the sale, 21 Del. C. §6309(d) puts a duty on dealers: they must tell the buyer when the title has been branded reconstructed, flood damaged or salvage, or the car was a taxi, and the buyer signs a DMV-approved statement (Form MV724). Without it, the buyer may rescind the contract and recover the purchase money. That rule is written for dealers, so in a private sale, read the title yourself and compare it with a CARFAX or AutoCheck report and any Copart or IAAI record for the VIN.

Title rules in Delaware at a glance

Title agency
Delaware Division of Motor Vehicles (DMV)
Salvage trigger
Transfer as salvage after a total-loss insurance settlement; the title goes to the DMV within 30 days (21 Del. C. §2512).
Title brands
Reconstructed; Salvage/Rebuilt Salvage; Flood Damaged; PREV TAXI (former taxicabs).
Rebuilt inspection
Delaware State Police Auto Theft Unit inspection and Delaware safety inspection before retitling on the MV214 Application for Title.
Seller disclosure
Dealers must disclose these brands and obtain the buyer's signed MV724; without it the buyer may rescind (21 Del. C. §6309(d)).

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Title brands in Delaware

Salvage certificate
Issued by the DMV after a total-loss insurance settlement, as proof of ownership. The vehicle may not be driven until it is reconstructed, inspected and retitled.
Reconstructed
The brand a Delaware dealer must disclose for a salvage vehicle that has been rebuilt and retitled after the State Police Auto Theft Unit and safety inspections.
Salvage/Rebuilt Salvage
Listed on the DMV's MV724 dealer disclosure form as a brand the Delaware title will carry; the buyer must acknowledge it in writing.
Flood Damaged
A title brand named in 21 Del. C. §6309(d) and on Form MV724; a dealer selling a vehicle that carries it must obtain the buyer's signed acknowledgement.
PREV TAXI
Under 21 Del. C. §2514, a former taxicab may not be offered for sale until its title has been surrendered and stamped "PREV TAXI" and the car has been found safe and fit to operate.

Red flags specific to Delaware

⚠ Damage that never became an insurance total
Delaware's salvage certificate is triggered by a total-loss insurance settlement, not by a damage percentage. A car repaired after an uninsured or unclaimed loss may carry an ordinary title, so look for auction records and repair evidence.
⚠ Half-finished rebuilds bought from another owner
The Auto Theft Unit does not approve repairs made by a previous salvage owner, and it wants pre-repair photos and dated parts receipts in the same name as the title. A project car bought mid-rebuild without that paper trail can be hard to retitle.
⚠ Private sales without an MV724
The signed brand disclosure and its rescission remedy apply to dealers. Between private parties, check the title for Reconstructed, Salvage/Rebuilt Salvage, Flood Damaged or PREV TAXI wording before paying.
⚠ Coastal flood exposure
Delaware's Atlantic beach towns and the shores of Delaware Bay are exposed to coastal storms and tidal flooding. Inspect any car from these areas for silt, corrosion and water lines, and check history reports for flood or total-loss events.

Frequently asked questions

When a Delaware-titled vehicle is transferred as salvage after a total-loss insurance settlement. The insurer or its agent sends the title to the DMV within 30 days of the settlement, and the DMV issues a salvage certificate. If the owner keeps the car, the insurer must either send in the title itself or require the owner to get the salvage certificate before it pays.

The Delaware State Police Auto Theft Unit, followed by the Delaware safety inspection. After the Auto Theft Unit inspection the owner receives an MV214 Application for Title, which is presented at a DMV facility with the salvage certificate, proof of insurance and the vehicle inspection report.

The salvage title in your name, a bill of sale or total-loss settlement letter, color photos taken before repairs, dated receipts for all parts (including the donor VIN for used parts) and proof of identity. The title, receipts and bill of sale or letter must be in the same name.

Under 21 Del. C. §6309(d), a dealer or dealer's agent must tell the buyer if the title has been branded reconstructed, flood damaged or salvage, or if the vehicle was a taxi. The buyer signs a DMV-approved disclosure statement (Form MV724), which goes to the DMV with the title application.

Section 6309(d) lets the buyer rescind the contract at any time if no disclosure statement was provided, and the dealer must refund the purchase money, interest and fees paid. The law also keeps other legal claims open for failure to disclose material facts.

Not before it is reconstructed. Once it has been reconstructed, has passed the Delaware safety inspection and valid insurance has been shown, the DMV can issue a temporary tag until the next scheduled Auto Theft Unit inspection.

Sources

Legal facts on this page were checked against these official sources in November 2026.

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