What is Salvage title?

Getting Insurance for Salvage Cars

By Mike Richards Updated: 05/22/2019 Posted: 06/23/2017

One of the first questions that people have, when they are looking at salvage cars for sale, is whether they can have them insured. After all, you need to have insurance coverage, and you would not want to buy a vehicle that you could not drive. Fortunately, those who have vehicles with a salvage title will be able to get the insurance they need.

However, you need to keep in mind that most of the insurance companies today will offer only liability insurance on salvage titles. You will not be able to get full insurance from most of the companies.

Why Do They Offer Liability?

As long as your vehicle has passed inspection and was able to receive its salvage title, it means that it is road worthy. Those who have vehicles with salvage titles have the same likelihood of hitting someone as those who do not have a salvage title, so there is no reason they wouldn’t offer this coverage.

What Else Might They Offer?

Some of the insurance companies will also offer collision coverage for salvage vehicles. However, you might not want to bother with that type of insurance, as it would just add to your monthly premium.

Most insurance companies will only pay 80% of the car’s value at most. If you have a salvage title, it means that the value of the vehicle is less than a vehicle with a clean title. Therefore, you will not likely get much money in the case of a collision. It might not be worthwhile to some depending on just how much you are spending on insurance.

No Comprehensive Coverage

Most of the insurance companies will not be willing to offer comprehensive coverage on vehicles that have a salvage title. This type of coverage will cover repairs, and since a salvage car could have a greater need for repairs, it would be too costly for the insurance company, even with the deductible you have to pay.

What Will the Insurance Cost?

A person’s insurance will go up when they have accidents, or then they get in trouble with the law for speeding repeatedly, DWI, etc. However, this does not mean that those who have salvage titles will be paying more for the insurance on their vehicles. The collision and liability coverage will tend to be about the same regardless of the type of title you have.

Should You Get a Salvage Vehicle?

If you feel that you really need to have comprehensive coverage for the vehicle, then getting a salvage vehicle might not be the best choice for you.

However, since you can get other types of insurance without much trouble, buying salvage cars can be a great choice for many people. They tend to be more affordable and you can buy them outright.

This might be a good choice for you. If you have other questions, you may want to speak with your current insurance company or other companies in the area to see how they will handle salvage titles.