What term describes the insurer taking ownership of a vehicle after paying for damages?

The term that describes the insurer taking ownership of a vehicle after paying for damages is "salvage." When an insurance company pays a claim for a vehicle that is deemed a total loss, they often assume ownership of that vehicle. This process allows the insurer to recover some of their costs by selling the damaged vehicle or its parts. Salvaged vehicles usually have a branded title, indicating that they have been in a significant accident or deemed a total loss by the insurer.

Subrogation refers to the process by which an insurer seeks to recover funds from another party responsible for a loss. It does not involve the insurer taking ownership of a vehicle. Transfer and reclaim do not specifically relate to the context of ownership transfer after a total loss situation in insurance. Therefore, "salvage" is the precise term used in the insurance industry for this scenario.