Question

When the insured's car was totaled in a recent accident, the ownership of the car was transferred to the insurer. What is the term for this action?

1. Salvage
2. Redemption
3. Repossession
4. Restoration

Answer 1

The term for transferring ownership of a car to the insurer when it is totaled in an accident is salvage. Correct option is 1.

Step-by-step explanation:

The term for the action of transferring ownership of a car to the insurer when it is totaled in an accident is salvage.

When a car is deemed a total loss by an insurance company, they often take ownership of the car and sell it for its parts or attempt to repair it. This is known as salvage.