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Can You Still Get Insurance On A Car With A Salvage Title?

By Mike Richards Posted: 08/22/2019

One of the reasons many people avoid buying cars with a salvage title is that they believe it is not possible to get insurance for one of these cars. Well, this is true up to a point: at least not until you repair it. But this should not be the reason you give up on a cheap set of wheels to drive around town. There are, however, certain things you have to do before you can get insurance coverage for a vehicle with a salvage title. So can you still get insurance on a car with a salvage title? Yes!

Buying a Salvage Car at an Online Auction

The best places to find and buy salvage cars are the numerous salvage auto auctions that take place throughout the country. At these auctions, you can find a huge number of cars, many of them with salvage titles, at very low prices.

Salvage Cars Insurance NY

You usually need a license or special documentation to get access to these auctions. They are not open to the public. If you go online, however, you will get access to a huge number of auctions at the same time. This is because there are online platforms like Auto Auction Mall that allow you to browse and bid on hundreds of thousands of vehicles, including salvage cars, that are put up for auction across the country every day. Auto Auction Mall gives you access to these auctions by lending you our dealer’s license.

Rebuilding Your Salvage Car

When you buy a car with a salvage title the main focus should be on finding out exactly what is wrong with it. This can be a bit difficult as you probably couldn’t do a full inspection at the auction website – and then fixing it.

This is where things can get tedious. Whether you are repairing the car yourself or you have someone else do it for you, first you have to do everything by the book. You have to keep all the receipts of the spare parts you buy in a file, which will be used at a later date. Everything has to be kept and cataloged.

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During the repair process, you should also take as many photos as possible of the car’s condition before, during and after the repairs. This is important because to get your car registered and get a rebuilt salvage title for it the car first has to pass an inspection at your local Department of Motor Vehicles.

A qualified inspector will go over your car in detail, as well as the papers you provide to determine whether the car has been repaired according to the law and whether it can be safely driven on the road again. Once it gets the green light, you are set to register the car. But can you insure it?

Further Reading

Can You Get Insurance On A Car With A Salvage Title?

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The answer is yes. But be prepared for additional inspections and higher premiums. First, insurance companies are reluctant to insure a rebuilt salvage car as it was already written off once. But, with a bit of negotiation and persuasion, and having already passed the DMV inspections, some might be open to talking with you.

You will probably have to submit the car to another inspection by a specialist hired by the insurance company. If they decide the car is roadworthy, you will get a quote.

The second issue is then the premium. Usually, the quote on a rebuilt salvage is a lot higher than for an equivalent car with a clean title. However, if use your negotiation skills, you might get the premium lowered. Although it will remain high, it will not be a complete rip-off.

Example Live Auctions for Salvage Title Cars

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