Can you insure a salvaged vehicle?
Many people buy salvaged vehicles for spare parts for their daily driver or for a “project car”. However, some people find salvaged vehicles that they either buy in a condition that they feel is road worthy, or they fix them up to road condition.
Naturally, those people (perhaps you are one of them) wish to actually drive these cars on the road, and that requires insurance coverage. Well, we’re sorry to say that this is where you’re going to run into trouble.
In the view of most insurance companies, salvaged vehicles are simply an unacceptable risk that they are unwilling to insure against. You may have a perfect driving record, perfect credit, a long and steady history of car insurance, but none of that will matter if you try to get auto insurance for your salvaged title through a major insurance company. And yet, under no circumstances will some insurance companies insure a vehicle with a salvaged title.
There is hope, however, though it is comparatively expensive hope. There are specialty insurance companies that will insure a salvaged vehicle. Usually these policies are limited to liability coverage only, and are generally more expensive (and perhaps much more expensive) than the same coverage would be for the same vehicle if it did not have a salvage title.
If you are looking to insure a salvaged vehicle, we suggest that you first do some research online, and then call around to insurance companies that specifically state on their website that they insure salvaged vehicles – if they don’t state it directly, most likely do not offer insurance for salvaged vehicles.
January 16, 2012