Insuring a car with a salvage title – video

Insuring a car with a salvage title isn’t as easy as insuring other vehicles because its condition (and value) can be challenging to assess. This article will share how salvage title vehicles differ from vehicles with a clean title and how calling Answer Financial may be a real time-saver when trying to get insurance quotes for a vehicle with a salvage title.

What’s the Problem with Salvaged Titles?

Unfortunately, because salvage titles vary so greatly from one state to the next, the condition of a car with a salvage title is somewhat of a mystery. Some states require these cars to be completely repaired and thoroughly inspected before they’re street legal again. Others have less stringent requirements.

To make matters worse, in some states, people can clear a title by having repairs done or passing a basic inspection. People buy these cars not realizing the problems they’ll encounter trying to insure them later. By checking the history of a car’s title through services like CARFAX or AutoCheck, or by running a check of your own through the National Motor Vehicle Title Information System, you can determine whether you’re purchasing a vehicle that has ever had a salvage title, along with information on the reason why.

Denied, Overcharged and Underinsured

From a business point of view, it’s a legitimate concern for an auto insurance company to insure a vehicle it has previously declared a total loss. A totaled car is determined to be more costly to repair then to replace. This is a decision owners often fight because of loss in value and hassles involved in selling, financing or insuring the car later on.

Some insurance companies will agree to cover a vehicle with a salvaged title, but it can come at a steep cost. Often the rates will be higher and that negates the potential savings of buying a salvage title vehicle vs one that has a clean title. Furthermore, in many cases the insurance companies will offer liability-only policies that do not cover physical damage to the salvaged vehicle. In most circumstances, the cost of these policies may not be worth it, but there’s no need for despair.

A small selection of insurance companies will consider comprehensive insurance policies for cars with salvaged titles once the owners prove their autos are safe and valuable. A thorough assessment performed by an ASE-certified mechanic is an easy way to do that.

Do you have a salvage title vehicle? Instead of calling endless insurance carriers, call us at 1-866-635-7777. We are one of the largest online auto and home insurance agencies in the U.S., representing many of the nation’s top-rated insurance companies.

Who is Answer Financial?

As one of the nation’s largest and most reputable auto & home insurance agencies, Answer Financial has insured nearly 5 million homes and vehicles. We work with 40+ top-rated carriers to save our customers an average of $565 a year on insurance.

Answer Financial can help you compare, buy and often save the smart way on insurance. So before you shop, remember to rely on your insurance experts to find you the right home insurance plan for your needs and budget.