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 & 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 allow for shoddy work or no work at all.
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 on. 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 comes 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 just isn’t 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.
February 2, 2019