Insuring a Salvage Title Vehicle
Many people look to buying vehicles with a salvage title in hopes of saving lots of cash. A lot of things are to be considered when involving yourself with a vehicle with a salvage title. Understanding used car salvage titles will give you an advantage over the average consumer. Once you decide to go through with purchasing a vehicle with a salvage title, you will need to know what it takes to insure a vehicle with a salvage title.
Salvage Title Vehicles
The term salvage title is applied to vehicles with different stipulations according to what state you are located. The all-encompassing stipulation is the damage to the vehicle is excessive, so excessive repairing the vehicle is pointless to the average consumer or insurance company. So who does fix these excessively damaged vehicles?
- Body shops absorbing the labor costs and turning a profit
- Home mechanics rebuilding their salvaged vehicle
- Car enthusiast restoring vehicles
Purchasing a salvage title vehicle requires a savvy buyer. Even some of the best auto body experts cannot see all the structural integrity of a vehicle. Make sure to verify what the damage was to the vehicle. Run a Carfax report to get the details of every accident involving the vehicle in question.
Insuring a Salvage Title Vehicle
If you plan on driving a vehicle with a salvage title, you need insurance on it. Anytime a vehicle is driven on the road, not towed, insurance is required to be driving legally. So if you recently purchased a salvage title vehicle and you want to drive it, you need to insure it.
Requirements for Insuring a Salvage Title Vehicle
Insurance companies do not like salvage title vehicles. Safety is important for both you and the insurance company. Possible structural damage makes insurance companies hesitant in wanting to insure salvage title vehicles; however, it is possible. As far as requirements go, a roadworthy operational condition is essential.
PLPD should be fairly easy to get on a salvage title vehicle. Most states require a vehicle inspection verifying the safety of every vehicle on the road anyways. More often than not, insurance companies are mostly concerned with physical damage coverage.
Physical damage can be anything from a ding, dent, or scratch. Or, the damage can be much more extreme like a smashed rear quarter panel. Insuring a vehicle with current physical damage can be tricky. Preferred insurance companies will probably not want to insure it. Some non-standard carriers might while extensively documenting the damage so it is not covered by future claims.
Increasing Coverage on a Salvage Title Vehicle
If you have fully restored or have purchased a fully restored vehicle with a salvage title, more than likely you will want to have it protected with physical damage coverage on your insurance policy. Adding physical damage coverage such as comprehensive and collision is when you will probably encounter the most difficulty insuring a salvage title vehicle. Some companies may not offer physical damage coverage of any kind to a vehicle with a salvage title. Insurance companies are very strict about not covering previous damage.
You can usually increase the coverage on your salvage title vehicle once you meet the following requirements.
Typical Physical Damage Insurance Requirements
- Detailed mechanical inspection
- On sight physical damage inspection by an insurance agent
- Current photos showing multiple views of the vehicle
Many companies will allow physical damage coverage if you meet the requirements. Remember to take the value into consideration before causing physical damage to any vehicle. It may not be worth the cost of insurance if the overall value of the vehicle is low.
It is possible to come out ahead with a salvage title vehicle purchase. You should be able to find an insurance company to provide physical damage protection. Know what you are up against and always proceed with caution when it comes to insuring a vehicle with a salvage title.