How to Buy Insurance for Salvaged Cars
Cars with salvaged titles often have been damaged extensively and undergone substantial repairs. In most cases, a car receives a salvaged title when it has been involved in a flood, fire, theft, or accident such that it costs more to repair the car than its current market value. A car usually is considered salvaged after it has been purchased by an insurance company as a total loss and then resold, usually at a public auction or to a third party.
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Instructions
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Review your state's regulations about salvaged titles.
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Request insurance quotes from multiple companies. Insurance companies vary by state so search for coverage based on your primary place of residence. While you can discuss insurance rates in person with a local agent, you also can obtain insurance rates online, such as through nationwide.com, progressive.com, or geico.com.
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Determine if the coverage is available, because many companies will limit or completely deny coverage for salvaged cars. Most insurance companies assess risk based on driving history, past claims, and location, such as if you live in a high crime area. Even if you must provide your car's Vehicle Identification Number (VIN) to get a quote, explicitly ask if coverage will extend to a salvaged car to avoid denial of coverage. Some companies might not pull reports using the VIN and do not realize that your car is salvaged.
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Evaluate the quotes you receive. For example, an insurance company might offer liability-only, instead of comprehensive and collision. Thus, you would have the minimum insurance needed to drive in your state, but your coverage would not protect your car if it sustained any damages (e.g., accident with an uninsured or underinsured driver).
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Pay for insurance using cash, credit card, or check and obtain a confirmation. An insurance quote will not satisfy your state's minimum insurance requirements until you pay. Plus, you must demonstrate proof of insurance to get license plates or to show cops who pull you over. Insurance companies allow you to select when you want coverage to begin, such as immediately or at a future date.
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Tips & Warnings
Be careful because if you have an accident and you are at fault, your liability insurance will not cover anything. If the other party was at fault, then his insurance will pay to repair or purchase your car.
