You’ve found a great car that’s going for much less than what a new one would cost. If you look at the description, and the photos, everything looks perfect. Besides, you believe the deal is fantastic and would save you thousands of dollars.
However, there’s one hiccup – the car has a salvage title. A good understanding of the used car salvage title is essential if you want to be leaps ahead of an average customer. You should know what it takes to insure a vehicle with a salvage title before purchasing it.
What’s a Salvage Title?
A vehicle has a salvage title if it’s been damaged severely in a collision, fire, flood or any other disaster. Different states have varied rules regarding which vehicles to assign a salvage title.
Some states consider the amount of damage as the proportion of the vehicle at the retail price. Others will require the original insurance company to declare the vehicle a total loss. A total loss occurs when the damage to the vehicle was too significant that it exceeds a specific percentage of the vehicle’s actual cash value.
Where the requirement is to declare a total loss, the insurance company can salvage the cars to a salvage yard or get it someone who’d be interested in rebuilding it.
So, Can one Get Full Coverage Insurance Salvage Title?
While it’s possible to insure a car with a salvage title, not all insurance companies will offer insurance for salvaged vehicles. Plus, those that do will not provide a complete deal. As it is, a lot of the insurance companies willing to come on board will offer liability insurance coverage that protects you when you’re liable for an accident. Few insurers would be willing to provide the comprehensive coverage capable of protecting you if damage to your car doesn’t result due to an accident.
The insurance companies perceive the salvaged vehicles as unsafe, far too risky and unacceptable. Some of them will even charge an additional premium for the salvaged vehicles even if you want to buy the limited liability coverage and the vehicle is worth much less than the comparable cars.
Can You Drive with a Salvage Title?
Typically, you cannot drive a car bearing a salvage title. However, salvaged vehicles can be repaired and rebuilt depending on how severe the damage is. Most of the states will require an inspection of the vehicle to ensure that it’s roadworthy. The car receives a ‘branded title’ that it’s been rebuilt or savaged.
Why You Need Insurance on Salvage Vehicle
Do you plan on driving a vehicle with a salvage title? That’s because if you drive a vehicle on the road, the state laws require that you must have insurance on it.
Besides, provided your car passes the registration requirements as required by the state, the salvage title does not enhance the chances of hitting somebody else. And since the possibility of you causing damage doesn’t increase, then your bodily injury and the property damage remain the same.
Documentation Required for Insuring a Salvage Vehicle
There’s no denying that insurance companies hate salvage vehicles and the possible vehicle structural damages make them hesitant to insure them. Since safety is important to them, the insurance companies will require a roadworthy inspection on the vehicle. They’ll need you to hand in a certified mechanic statement that proves the car is in excellent condition.
If you’re looking for full coverage insurance, the insurance company will ask for photos and in some instances – videos of the vehicle. They’ll help the insurer compare the damages if you ever make any claims in the future.
Lastly, your insurance company will require the original repair estimate issued to you when purchasing the rebuilt car. The estimate indicates the damages and the improvements made to the vehicle as proof that all the damages have been fixed.
Would you like to know more about insuring salvage vehicles? Insurance Salvage for Sale is here to help so you can get full coverage insurance salvage title. Contact us for more information.