People often assume that it is very difficult to get insurance coverage for cars bought at auction. This is not entirely true. However, there are certainly some things you will need to consider when you are buying from car auctions when it comes to insurance. Dispel the myths so you know what you can expect.
Some Vehicles Are Easy to Insure
Some of the car auctions out there have new and nearly new vehicles, as well as used vehicles that are in decent shape. They do not need to have any work done to them, and you can register and insure them almost as soon as you buy them. It is easy to get liability insurance and full coverage for these vehicles through any insurance company out there. When you are buying these types of vehicles, you have nothing to worry about when it comes to getting insurance. With other vehicles, there could be a bit more involved with getting insurance, though.
Some Vehicles Take a Bit of Work
Many of the vehicles that are available through car auctions have what are known as salvage titles. This means that they were declared a loss by the last owner’s insurance company, and as they are right now, you can’t get them on the road and you can’t get insurance for them. This is likely what people are talking about when it comes to not being able to get insurance. However, that doesn’t mean it is a lost cause. When you rebuild the vehicle, as long as it doesn’t have a title that states it can only be sold for parts, you will be able to get liability insurance.
The tricky part will come when you are trying to get more coverage for the vehicle. Insurance companies are notoriously bad at determining the value of rebuilt vehicles, and some simply aren’t willing to try. They don’t know what to charge you if they don’t know the value of the vehicle. Some insurance companies, such as Progressive, are able to provide more coverage for these rebuilt vehicles.
The premiums should be reasonable. Some might try to charge more for these vehicles, but that doesn’t make sense. The value of the vehicle is lower, and the premiums should reflect this. Make sure you aren’t paying too much for the vehicle.
Know What You Are Buying and Research Insurance Companies
When you are buying from car auctions, you need to know everything that’s wrong with the vehicle before you buy. This will allow you to find out what you need to do in terms of repairs, as well as how difficult it might be to get comprehensive and collision coverage for the vehicle. As long as you know what you are buying, though, you will be better prepared for finding insurance.
In fact, many buyers find that checking with insurance companies even before you buy a vehicle is a good idea. Start talking with insurance companies about their policies when it comes to insuring rebuilt vehicles. This way, you can do your preliminary insurance shopping and research even before you buy the vehicle.
As you can see, there is some truth to the fact that getting insurance for some vehicles from car auctions can be difficult. However, it is not impossible, as long as you do your research.