Salvage Car Insurance: Is It Worth It?
Unfortunately, a salvaged vehicle, depending on the damage, can be a threat to your safety and to those who ride in the vehicle with you.
Your state is likely to require a lot of additional documentation, such as an ASE certified mechanic inspection, proof of all repair costs, proof of ownership, and an inspection by their Highway Patrol. The car will receive either a “salvage title” or a “salvage certificate.”
Salvage care insurance is difficult as the condition and value are hard to assess. Companies who do insure them may set coverage limits, offer full coverage at the salvage price (if you paid $2000 for the salvage vehicle, that’s your coverage limit), and/or charge a higher rate, potentially negating the savings of buying or keeping a salvage vehicle.
Important Tips Before Deciding To Go Salvage
You need to determine the following:
1. What caused the car to be considered totaled (check Carfax, Autocheck, or the National Motor Vehicle Title Info System)
2. Is it truly a salvage vehicle or is it beyond repair?
3. Your state’s laws governing registration and insurance on such vehicles.
4. What are your insurance options (full or liability only coverage)?
5. The official accident report and if available, the initial estimate for repair, as well as all known damage.
Taking The Plunge
Buying salvage can be a real saving under the right circumstances. If the tasks sound daunting, perhaps salvage isn’t a good option for you. After following all of my advice, if you decide to go salvage, here are a handful of companies known to insure them.
• Answer Financial
• Farmers Insurance