If you’re in the market to buy a car but don’t have a lot of money, it may seem like salvage vehicles are a great way to go. After all, it doesn’t get much more affordable than them.
While they definitely represent a great opportunity, remember that buying insurance for salvage cars for sale can be a bit of a challenge. The following will help explain why and what you should do before making a purchase.
What Is a Salvage Car?
Let’s begin with the basics. Before you need to worry about insurance for salvage cars for sale, you should probably understand what these vehicles entail.
Sometimes, after car accidents, insurance companies look at the vehicles they have issued polices for and determine that paying for repairs would cost more than the value of the vehicle in question.
The Issuing of a Salvage Certificate
After the above situation, a salvage certificate is issued. Many people make the mistake of thinking that this certificate is the same as a title. When these people go to buy insurance for salvage cars for sale, they find out otherwise.
Therefore, let’s clear up this misconception right away. This certificate is issued in lieu of a title. It’s like a placeholder.
Given its condition, the government will not let it be driven until it’s had necessary repairs done. Once those repairs get done – and only then – the government will replace the aforementioned certificate with an actual title.
Options for Insurance for Salvage Cars for Sale
After receiving their titles, people can pursue insurance for salvage cars for sale. However, they’ll face a major challenge. That’s because these titles generally have a caveat. They might say, “revived salvage” on them, for example.
Unfortunately, many insurance companies won’t have anything to do with these vehicles. Those that do tend to charge quite the premium in return for coverage.
Note: this is not the same as being legally designated as “unrepairable.” This kind of designation means just that. A vehicle that has been given it can only be used for parts or scrap. No insurance company can legally have anything to do with it.
Now, with all this being said, we don’t want you to get the idea that a salvage vehicle is impossible to insure. It’s not even necessarily the case that your insurance company is going to charge you an exorbitant amount for your new vehicle.
Working with Your Insurance Company
However, this should underscore why you need to work with your insurance company before making a purchase.
Prior to spending a dime, call your agent and tell them of your plans. Find out what sorts of features would make it easier for them to insure you at a reasonable rate.
No insurance company wants to turn away a customer, so most will work with you on these issues beforehand. The major thing is going to be that they want to make sure that the vehicle you’re buying is safe or at least will be after you make the necessary repairs.
That’s all there is to it. You now know everything you need to in order to purchase a salvage car and make sure it is properly insured.
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