A salvage title is a designation given to vehicles declared a “total loss” by an insurance company. Such a designation is made by an insurer when the cost to repair the vehicle exceeds its actual cash value. A salvage title replaces the clean title that vehicles get when they have never been significantly damaged. However, just because a car is declared a total loss doesn’t mean that it can’t be repaired or ever driven again. Unfortunately, however, it does mean that finding insurance for the car will be difficult.
So, can you get insurance on a salvage title? If you want to get insurance on your car with a salvage title, it will require more effort than insuring one with a clean title. An insurance company declared the car a “total loss,” so it can’t be registered, insured, or driven on public roadways. You can get insurance for a car with a salvage title. However, you will have to do significant repairs to the vehicle. When you repair the car so that it can be driven and safely operated, it will be given a rebuilt title. Once you get a rebuilt title, you can shop around for insurance and compare rates.
In many cases, you may have to consider several insurance options before finding the right coverage for your salvage car with a rebuilt title. Many insurers will view the car as a higher risk and will charge you more for coverage. Let’s take a closer look at salvage cars with a rebuilt title.
Coverages
No matter what type of title a vehicle has, you are required to have insurance before you can drive it on public roads in many places. Many states require that all drivers carry a minimum amount of liability insurance. These insurance laws are in place to protect other drivers if you cause an accident. Liability insurance doesn’t protect you or your car if you are at fault in an accident. As a result, many drivers choose to purchase a full coverage policy that includes collision and comprehensive coverage.
If you are looking for collision and comprehensive coverage on your salvage vehicle, you might not have many options. The majority of insurance companies will typically only offer liability insurance coverage on rebuilt salvage vehicles. This will allow you to purchase coverage that meets the legal requirements for your state. Unfortunately, comprehensive insurance will probably not be an option since the car’s value is usually uncertain once it has been salvaged and then repaired.
Rates
No matter what type of car you want to insure, auto insurance companies will consider many factors when determining rates. During the underwriting process, variables such as your age, driving record, type of car, and location are factored into a complex formula to determine your specific risk factor. Car insurers will then set your premiums based on the perceived risks of insuring you. If you are trying to get insurance on a salvage vehicle, you could encounter significant premium rates. This is because a rebuilt title car is considered at risk for failure.
Policies
As discussed, you may only be able to get liability coverage for your salvage car in many instances. To find a policy with the best rate, you’ll want to shop around using an online comparison tool. You can compare several quotes, plans, rates, and insurance companies. Once you find the right policy for you, the car insurance company will need some additional information about the car. Usually, you will need to provide a mechanic’s statement, photos of the vehicle, and a repair statement. This documentation proves that the car has been repaired and is in safe working order.
Depending on what kind of insurance you need, you can find coverage for your salvage car. With some time, research, and comparison shopping, you can get a policy and rate that works best for you.
