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Salvage Cars Car Insurance

Can I Get Insurance for a Salvage Title Car and What Does Salvage Mean in Louisiana State Auctions?

By Mike Richards Updated: 06/08/2018 Posted: 10/16/2015

Buying a car can be an investment many people can’t afford. There is a better option, though, if you are looking for used cars cheap. Consider an online salvage car auction including Louisiana state auctions. Some people get the wrong idea of what a salvage car actually is. In their minds, they see a car that is being smashed at a junkyard. So what does salvage mean on a car?

Salvage cars actually may be severely damaged, but they may not show any problems whatsoever. That’s because they can be “damaged” in different ways. The state law is simple: if a car sustains damage that would require repair expenses 75% or more than the retail value of the car, then it is salvaged.

If you have ever been in a collision and the insurance company “totaled” your car, then this is the same thing. In those cases, when a vehicle owner makes a claim, they will be reimbursed. The company will salvage the car and it will be sold at auction. Then, you can buy it.

Salvage Car Rules

It is important to keep in mind that salvage cars are not legally drivable in Louisiana and they don’t have warranty. That’s because they can’t be registered, can’t have tags, and can’t be insured. If you want to drive one of these cars, then you will need to get a reconstructed title. This will allow you to get all of the legal documents for the vehicle.

Applying for a reconstructed title is fairly easy in Louisiana, especially when compared to some other states. Here is what you will need to do once you have gotten the car repaired:

  • You will need to provide the Louisiana salvage vehicle title or an out of state salvage title that has been endorsed.
  • You will need to provide a notarized bill of sale to show you have ownership of the car.
  • You will need to have a physical inspection done on the vehicle. It must be handled by a law enforcement officer who has been through Peace Officer Standards and Training. And, you will need to provide an affidavit showing the car has been inspected.
  • You will need to fill out and provide an Application for a Salvage-Reconstructed Motor Vehicle. That form will require information on you, the car itself and the repairs you need to have made.
  • You will also need to fill out an application for a title and any fees required for inspections and application.

Once you have done all of this, and if there are no hitches, then you will get a new title that is stamped with rebuilt salvage. After that, you can get your car registered and get a new tag.

Getting Insurance

You can’t get insurance coverage on a salvage vehicle until you have the rebuilt title. That’s because the car before repairs isn’t even legal to drive. However, once you have it re-titled and you have the proper registration, then you can go to insurer and get insurance policies. The easiest to acquire will be liability. That’s the minimum you need for your car to be legally drivable.

However, if you do some shopping and look at different companies, you may even find one that will offer comprehensive or universal insurance so that the car is fully covered. As long as you have liability, you will be able to drive with no problems.

What Is a Salvaged Car?

So, just how much damage would a salvage car have? It can really depend. Cars can be titled salvage for a number of different reasons, including:

  • Collision
  • Flood
  • Hail
  • Vandalism
  • Theft

The type of damage can vary drastically. In some cases, it may simply be cosmetic damage and you may not have to put much money into it at all. On the other hand, if the car was in a collision, then the cost of repairs can be significantly higher, but the original cost of the car at auction will be lower in that case.

You will have to determine how much you would be willing to spend to buy the salvage car and get it repaired. No matter what, you will very likely spend less money than you would if you bought that same car without the salvage title.

The easiest way to access these cars would be through an online car auction. That way, you can bid from home and choose your vehicles in a low-stress environment. By browsing cars available through these online auctions, you can bid, win the auction and then have the vehicle shipped to you. It’s as simple as that.

If you are interested in saving money on a vehicle in Louisiana, then a salvage car could be right for you. It will help you spend a lot less even with the repairs it will need. And, as long as you follow the rules and steps set up by the state of Louisiana, then you should have no problem getting a rebuilt title and getting your car registered. Then, you can have the car registered and you will be ready to drive your car as normal. It really doesn’t have to be a very difficult process at all.

Read more on the official Procedures in This State, or on Rebuilt Title Laws for Other US States. Explore our Vehicle Auctions and find info on Buying With Us.

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