How to Insure a Salvaged Vehicle

Salvaged vehicles may be insured.

In many ways, insuring a salvaged vehicle is the same as insuring a new car, but because the value of a salvaged car is lower, the price of the policy will usually be lower, too. Some insurance companies may perceive the salvage title as an added risk, while others may see it as simply a decrease in the asset's value. Not every insurance company provides insurance for salvaged vehicles.

Instructions

1. Find the salvage value of the car. If you salvaged the car yourself, go to NADA Guides (Nadaguides.com), enter the vehicle make, model and year to see the fair retail value. Subtract 20 percent from this value to find the salvage value.

2. Consult local insurance agents to get a policy on the car. Tell them the car is a salvage vehicle, which makes the actual value less than the retail value. Most likely, they will use their own calculations to determine the value.

3. Select the coverage options that best protect the car. Include collision and comprehensive in your claim. Collision and comprehensive will add protection against theft, storms and accidents. Since the value of the car is lower, the price of the policy should be lower as well. If the price is too high, go to Step 4.

4. Consult another insurance company and get an another quote on the vehicle. You may find that due to the salvage title, the prices on the policy differ quite a bit. Some insurance companies may perceive the salvage title as an added risk, while others may see it as simply a decrease in the asset's value.

Tips & Warnings

• Liability insurance, collision and comprehensive are all available for salvaged cars, although not every insurance company provides insurance for these types of vehicles.

References

• Progressive: Total Loss on Vehicles

Resources

• Ohiolemonlaw Website: Article About Salvage Vehicles