How To Get Car Insurance For Salvaged Titles

How To Get Car Insurance For Salvaged Titles

Was your car declared a total loss but repaired afterward? Are you considering purchasing a car that was once a total loss but has since been rebuilt? Perhaps you are wondering what happens to cars that are declared total losses but can still be repaired and driven?

Repairing your own car or purchasing a salvage car can save you money. But it’s important to think ahead. Purchasing car insurance for salvaged titles can be a little tricky.

Keep reading to learn more about what you can expect when it comes to car insurance for salvaged title vehicles.

What is a Salvage Title?

Most cars have what is called a clean title. This means that the car has never sustained serious damage, had any defects, or had any alterations to the odometer.

When a vehicle is in an accident that causes significant damage, it may be declared a total loss if the cost to make the necessary repairs exceeds a specific percentage of the car’s current value. This percentage depends on the state where you live and the insurance carrier you have. When a car is declared a total loss, it is given a salvage title.

This means it can’t be driven on public roads and you can’t purchase an insurance policy for the vehicle. However, this doesn’t mean the car should be scrapped.

Insurance companies typically sell cars with salvage titles to salvage yards or rebuilders. These parties then rebuild the car to make it safe to drive again. Rebuilt cars must pass a special inspection, as dictated by state law.

Salvage cars can be repaired and refurbished and given a special title. This new title is called a rebuilt title. With a rebuilt salvage title, a totaled vehicle can be registered, driven, bought, and sold like any other car.

Rebuilt Titles vs Salvage Titles

Cars with salvage titles can only be purchased by parties with special authorization. But cars with rebuilt titles can be purchased by anyone. Rebuilt titles aren’t quite the same thing as salvage titles.

Rebuilt salvage titles indicate that a vehicle was previously declared a salvaged vehicle but has since passed an inspection and is now legally drivable in your state. In cases where a vehicle is damaged beyond repair, it is given a non-repairable title and it can only be used for its parts.

You can’t purchase insurance for a car with a true salvage title because a car in this state can’t be legally driven on the road. So, for the purposes of this article, we will use the terms salvage title and rebuilt salvage title interchangeably.

Getting Car Insurance for a Salvage Title

car insurance for salved titles getting repairs

It can be challenging to find car insurance for a rebuilt salvage title because some insurers just won’t offer this coverage, even for liability insurance. This is because it can be difficult to assess the value of rebuilt salvage vehicles and distinguish new damage from preexisting damage.

Ideally, you’ll want to purchase full coverage insurance that includes comprehensive coverage for your vehicle.

The liability portion of your policy will pay for bodily injury and property damage to other parties if you cause an accident.

The collision portion of your policy will cover damages to your own vehicle if an accident occurs. This coverage can be useful if you cause an accident that damages your own vehicle or if another party causes an accident but refuses to pay. Your own insurance will help you repair your vehicle and then go after the other party.

The comprehensive portion of your policy will cover damages to your own vehicle for covered losses that aren’t caused by a collision with another vehicle. This includes losses from incidents like falling trees, damage from hail, theft, vandalism, and even hitting an animal.

The best way to find insurance for a salvage title is to compare quotes from multiple insurance carriers side by side.

What You Need to Provide

Purchasing car insurance for a rebuilt salvage title is a little different than purchasing basic car insurance. Most insurance carriers will require you to provide some documentation in order to purchase a policy.

In most cases, you will need to provide photos of your vehicle if you are looking to purchase a full coverage policy. Some insurers may require video in addition to photos. These photos and videos will be used for comparison purposes if you end up filing a claim for damages down the line.

You’ll usually also need to get a certified mechanic’s statement. The mechanic is stating that your car is in good working order.

Finally, you’ll probably need to provide the original repair estimate for your vehicle. You should have received this estimate when you purchased the car or from the insurance company that totaled the car. This document lists the damages and repairs made to the vehicle.

It acts as proof to your new insurance company that the damage has been repaired.

Choosing the Best Policy

As we mentioned before, it’s important to compare several different quotes when looking for a car insurance policy.

This is true for any kind of insurance, but especially when you’re shopping for car insurance for a salvage title. Some car insurance companies will charge more for salvage car insurance by adding a surcharge. The best way to compare quotes side by side is to explore your car insurance options online.

If you’re looking at rates before purchasing a rebuilt salvage car, make sure you’ll be coming out ahead. If the amount you’ll end up paying for car insurance coverage exceeds that amount you’ll be saving by purchasing a car with a salvage title, doing so might not be the best option.

Are You Looking for Car Insurance for a Salvage Title?

If you’re looking for car insurance for a salvage title or rebuilt salvage title, you’ve come to the right place.

We can help you explore your options and find the cheapest rates. On our website, you can compare quotes from multiple carriers side by side.