What is Salvage title?

Can I Insure a Salvage Vehicle I Buy in a Dealer Auction?

By Mike Richards Updated: 05/22/2019 Posted: 07/11/2017

As you browse the inventory of vehicles available through dealer auctions, you’re going to come across a great number of salvage cars. These vehicles definitely warrant your consideration, as they present perhaps the best chance for getting a song of a deal on a car.

Of course, salvage cars are a bit different than their used brethren. In order for a salvage car to be operated on roadways once again, there are several things you’ll need to do. First, of course, you’ll need to make the necessary repairs. But, after that you will need to secure a rebuilt-from-salvage title and auto insurance. Below, we’re going to review what’s involved in doing these things.

Getting a Rebuilt-from-Salvage Title

A vehicle with a salvage title cannot be legally operated on any public roadways in the United States. In order for a salvage vehicle to be permitted to get back on the road, its owner must first secure a rebuilt-from-salvage title.

What’s involved in doing this varies from state to state. In fact, there are certain states in which all salvage cars must be rebuilt by licensed mechanics. Beyond this, each state has different requirements when it comes to documentation and proving that a vehicle has been made roadworthy.

Regardless of where you live, there’s one thing that’s consistent. You will need to provide receipts for all parts and labor that have gone into repairing your salvage car. So, be sure you’re keeping accurate records as repairs proceed.

The Question of Liability Insurance

After getting a rebuilt-from-salvage title for the car you purchased in a dealer auction, you will next need to secure insurance. Here there is a mix of good news and bad news.

The good news is that securing liability insurance should be incredibly easy. In fact, most people who buy salvage cars in dealer auctions go through their current insurer to get liability coverage. If you want to rate shop, though, you can certainly do so.

The bad news is that comprehensive coverage may be hard to come by. Many insurers are loath to provide this coverage for formerly salvage vehicles. There are insurers who specialize in offering comprehensive coverage for salvage cars, but the premiums are often quite exorbitant.

Do You Need Comprehensive Coverage?

Now, before you consider the difficulty of comprehensive coverage a deal breaker, think about this: When you rebuild a salvage car, you’re already saving an incredible amount over what you would have paid had you bought the same car used. Given that, do you really need to back up your ‘investment’ with that kind of comprehensive coverage?

Savings with Salvage Cars in Online Dealer Auctions

For those who want to get a car on the cheap, salvage cars are an incredible option. Without a doubt, the best way to get a salvage car is to access dealer auctions through websites open to the public. So, sign up for one and see what’s out there. Your next vehicle could be just a few mouse clicks away!