How to Buy Insurance for Wrecked & Totaled Vehicles
Several insurance companies restrict coverage for wrecked or totaled vehicles. While you usually can buy liability insurance for salvaged cars, you might face obstacles in finding full coverage. Even if you get both collision and comprehensive coverage, your insurance company probably will pay less than the market value when you are involved in an accident. You must disclose the vehicle identification number (VIN) whether you buy insurance in person, by telephone, or online.
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Instructions
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Review your state's department of motor vehicles rules for wrecked or totaled vehicles. Some states, like New Jersey, will issue a clean title after reviewing proof of vehicle repairs (photos to demonstrate the car before and after being repaired). If you live in Massachusetts, the state police must inspect the car after it is repaired.
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Gather personal information, such as your driver's license, the current policy, and the car's odometer reading. You must disclose your legal name, address, and names of other drivers who reside with you. Also be prepared to answer questions about your driving record.
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Contact multiple insurance companies (Farmers, GEICO, Progressive, Esurance) and compare quotes. Most regional or national insurance companies provide online quotes if you do not want to contact an insurance agent. For additional discounts, mention professional and civics memberships along with car security features.
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Analyze the insurance quotes and policies carefully. A cheap quote might require extremely high deductibles. An insurance company can refuse to provide coverage or require an inspection (to determine whether the wrecked car can be operated safely).
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Submit payment in full or arrange a payment plan (monthly, semi-annually, quarterly). If you select a policy for a year but arrange quarterly payments (every three months), you will not have valid insurance unless you comply with the payment plan.
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Tips & Warnings
If you purchase a totaled vehicle only for spare parts (no intention of driving the car), you probably do not need insurance.
Insurance companies value wrecked cars less because the cars were involved in accidents or significantly damaged (cost of repair exceeds market value). Always review the vehicle history report, though some vehicles have a clean title even though they were wrecked or totaled.
