Nice stories, but none of that happens in Indiana anymore. Insurance companies have wised up, and body shops can no longer get away with it. Medical is usually separate from the physical damage to the car as well. Cars get totaled that have minimal damage because people don't have insurance, will default on the loan as a result leaving the car in limbo. Bank doesn't want it back. So it is considered salvage because it was sold damaged due to a fender bender and a defaulting owner. Now if insured, it would have been fixed. Another instance if stolen and slightly damaged. The insured here in IN can refuse the car, since they don't know what or how the car was driven before the damaged occurred. My Suzuki 90 was a stolen and recovered vehicle with slight damage (scratches) and was considered salvage. Some stolen cars have no damage at all. But recovering them took time and the person had already settled with the insurance company and have a new car. Again, in IN, it is considered salvage.