What is a condition under which the insured may not receive payment for salvage costs?

When a vehicle is considered a total loss, the insured generally does not receive payment for salvage costs. This occurs because if the vehicle is declared a total loss, the insurer typically pays the insured the actual cash value of the vehicle minus any deductible, which means the vehicle is effectively replaced rather than repaired. In this scenario, the salvage value becomes irrelevant to the insured, as they are compensated for the entirety of the vehicle's value before the loss.

In contrast, if the vehicle is recovered undamaged, it suggests that there may still be value in the vehicle, and therefore, salvage costs may come into play. When a vehicle has been customized, the insured may still have reasons to pursue salvage options. Similarly, if a vehicle has been repaired before claiming, there may still be conditions under which salvage costs could apply. Thus, total loss is the primary condition under which salvage costs would not be applicable to the insured's compensation.