(a) “Salvage” means any vehicle that: (1) Has been damaged by collision, fire, flood, accident, trespass, or other occurrence to the extent that the cost to repair the vehicle for legal operation on a highway exceeds 75% of the fair market value of the vehicle prior to sustaining the damage, as determined under § 13-506(c)(4) of this article;
(2) Has been acquired by an insurance company as a result of a claim settlement; or
(3) Has been acquired by an automotive dismantler and recycler:
(i) As an abandoned vehicle, as defined under § 25-201 of this article; or
(ii) For rebuilding or for use as parts only.
(b) For purposes of this section, a vehicle has not been acquired by an insurance company if an owner retains possession of the vehicle upon settlement of a claim concerning the vehicle by the insurance company.