According to the Michigan Department of State website, automobiles that are damaged to such an extent that the insurance company will not repair them are issued a salvage or rebuilt title. Such titles are colored orange.
Damage
An orange rebuilt title is issued to any vehicle in which major components, such as bumpers, the transmission or the engine, have been damaged. The Michigan Department of State reports that an insurance company will determine the value of the damage; a rebuilt or salvaged orange title is awarded to a vehicle that has sustained damage with estimated repair costs that are more than 75 percent of the vehicle's cash value.
Rebuilt
According to the Georgia Department of Revenue, a rebuilt title is issued to a vehicle that is repaired following the awarding of a salvage title. To be awarded a rebuilt title, a vehicle must pass stringent inspections--by a certified inspector, in most states, or in some cases by a qualified law enforcement officer.
Brand
The Michigan Department of State explains that orange rebuilt titles are branded with the rebuilt wording for the life of the vehicle. To make the branding of the title easier, an orange color has been used for rebuilt and salvage titles since 1989.
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