Insuring a salvage title car requires much more effort than insuring one with a clean title. First, a salvage title car needs to be repaired and given a rebuilt title before it can be driven or insured. Before buying and repairing a salvage title car, you need to understand how you will get it insured. The first step is knowing how a salvage title is different from other designations such as a clean title or rebuilt title.
Is It Possible to Insure a Car With a Rebuilt or Salvage Title?
You cannot get insurance for a salvage title car. Salvage title cars are declared a "total loss" by an insurance company, so you can't register them, drive them on public roads, or get insurance for them. You can, however, get insurance coverage for a former salvage title car that has a rebuilt title, but you must provide proof that your car is in good enough condition to be on the road.
HowStuffWorks says that many insurance companies will offer liability insurance on a rebuilt salvage vehicle, so you can purchase what you need to legally drive the vehicle. Some may not even offer liability insurance, so you should be prepared to talk to multiple insurance agencies. Unfortunately, hardly any insurance companies will provide damage coverage.
Some insurance companies will simply be unwilling to provide you collision or comprehensive policy. Those that are open to providing you a policy will likely charge you a great deal of money. According to The Balance, insurance companies are wary of covering rebuilt cars because if you were to get into another accident, it could be difficult to determine whether any damage came from the most recent accident or from the previous one that caused it to have a salvage title. An additional concern that insurance companies have is safety risks. Insurers take into account that the car has been damaged and that it may be more likely to break down again in the future.
CarInsurance.com tells us that rebuilt salvage title cars have a very low resale value. In fact, they say that Kelley Blue Book (KBB) doesn't even provide pricing on them. This means not only would you not be able to make much money reselling such a vehicle, but also if you were to make an insurance claim on a rebuilt salvage car, you should expect that your insurance payout will be substantially lower than on a clean title car.
How to Get Rebuilt Salvage Car Damage Insurance
You are going to want to compare a minimum of three or four quotes when searching for car insurance for your rebuilt salvage car. Keep in mind that damage insurance might not be worth the cost. You could pay more than the car is even worth. After you have found an insurer that is willing to provide you coverage, you will normally need to give them the following documents to get a quote:
Certified mechanic's statement. This certificate verifies that your car is safe and in good working condition.
Photos of your vehicle. Sometimes they even ask for videos. If you were to make a claim, these photos will be looked at to see what damage was there before.
Repair estimate. This document will provide details about the previous damages and repairs made. This provides proof that damages have been adequately repaired.
Once you've provided these documents and photos, you will likely be able to purchase car insurance. It may not be the easiest process, but it is possible to find damage insurance for your rebuilt salvage title car.
For more information on what is a salvaged title and if it is worth it to insure a salvaged vehicle click here.
Source: Car & Driver