We are going to discuss the topic of insuring a salvage title car here. But first, for those who may not already be aware, let’s look at precisely what is referred to by a “salvage title car”. This is an automobile that, for all intents and purposes, is totaled. Its value is exceeded by the money it would cost to repair the damage it has sustained. If it is repaired and roadworthy, a salvage title car is one with a rebuilt title.
Though lots of money can be saved by purchasing one of these vehicles, when it comes to insuring a salvage title car, you might end up paying more. Let’s answer some questions about these types of vehicles and how to insure them in an effort to create a sort of guide. This could assist you if you decide to purchase one of these vehicles.
What Kind of Vehicles Qualify?
As stated earlier, vehicles such as those discussed aren’t worth repairing. To repair the vehicle after damages it has sustained will exceed its value. What kind of numbers are we talking about when it comes to exceeding the value? From 90% down to 50% of the vehicle value is common, depending on the state in which you live.
A vehicle such as this may have been stolen, and then months later, recovered. It may have been damaged by a flood or hail or totaled in a wreck. For economic reasons, insurance companies declare many older model vehicles involved in serious accidents “totaled.”
Can These Kinds of Cars Be Driven?
Even if it still runs, legally, a car with a salvage title cannot be out on the road. However, some of these vehicles can be repaired and rebuilt, depending on the severity of the damage. To make sure it’s roadworthy, a vehicle inspection is required by some states. If the vehicle has been rebuilt or salvaged, then it receives a rebuilt or “branded” title.
Is There a Difference Between a Rebuilt Title and a Salvage Title?
A car can be registered, driven, and sold if it has a rebuilt title because it’s been repaired and, by a salvage inspection operator approved by the state, has passed inspection.
You cannot legally drive a car that’s been declared a total loss and has a salvage title.
For the record, to tell whether or not a vehicle is a salvage vehicle, there are a number of ways. First and foremost, in writing, a buyer must be informed by the seller of this status. It’s state law.
Aside from that, there are lots of ways to check on the vehicle including Carfax, the National Insurance Crime Bureau, the National Motor Vehicle Title Information System, as long as you have the title or the VIN.
What about Insurance?
Any and all vehicles should be insured. That’s the bottom line. You need a copy of your title to obtain insurance for one of these vehicles. You’ll also need the VIN and your registration. A mechanic’s report or inspection report may also be required. On some occasions, an appraisal may be needed.
Salvaged vehicles are not insured by every car insurance company. For example, unless things have changed, Direct General and Travelers will not. There are a number of determining factors that can come into play here.
What Kind of Insurance?
If indeed a company will insure this car, they may only be willing to provide liability coverage. That means if you’re at fault in an accident, and damage someone’s property or injure someone, you’re protected. But collision insurance and/or comprehensive coverage may not be provided. It depends on the insurer.
Here are some statistics that may still be in effect, but were not too long ago:
- Unable to find coverage – 3%
- Were able to get collision, comprehensive, and liability – 37%
- Unable to get anything more than liability coverage – 60%
If you need insurance, here’s whom to turn to…
Need to Insure a Salvage Title Car? Talk to K&N Insurance Brokerage
When you turn to K&N Insurance Brokerage, you will be able to compare real prices on different types of insurance policies. Please call us (866-643-1567) or visit our website to get exclusive discounts and rates. Would you like a quote? Feel free to use our convenient online form to get started.