You’re shopping for a new car and a great deal comes along. But you see the car is listed as having a salvage title. Should you buy it? Will insurance companies insure a salvage title car? Before you buy make sure you learn about what it will take to insure and what you should look out for.
Read on to learn why it is expensive to insure a salvage title vehicle and how to go about getting salvage title auto insurance.
What is Insurance for a Salvage Title?
If a car is assigned a salvage title, it means it has been at some point in its life declared a total loss. A total loss is declared when the insurance company decides that it would cost them more to fix it than the car is actually worth. Insurance companies and states each have their own levels of damage needed for the vehicle to be considered a total loss. This level of loss can range anywhere from 60% to 90% of the car’s current value.
A salvage title is also known as a branded title. The most common type of title, known as a clean title, indicates that the car has never had serious damage.
Can I get Insurance for a Salvage Title Car?
You can get insurance, but you may not get as much as you want. In some states you may only be able to purchase liability insurance coverage for a salvage title car, and usually because this is the state requirement for any vehicle on the road.
Beyond liability, you can certainly try to obtain full coverage, but it will likely be very costly. Also, if you do have an accident you would not get full reimbursement for a salvage title car. Most insurance companies will pay out only 80% of the car’s value. And, this is in the case of a total loss. Trying to get any type of damage coverage will likely be difficult also.
How to Get Salvage Title Car Insurance
You will need to provide some special documents to obtain coverage. These can include a mechanics statement that the car is in good working order and is safe, photos of what the vehicle looks like currently, and potentially even the repair receipts showing the work you have done to make the car usable again after being declared a total loss.
The best way to find an insurance company that will insure your salvage title vehicle is to shop around. In fact, it may be the only way. You may have to talk to several insurance companies before finding a fit. It can take talking to three or even four agents to compare quotes when trying to find auto insurance with a salvage title.
This is where InsuranceWins can help. Just fill out our simple form and we’ll start helping you find an insurance company that will cover you and help you get on the road.