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How do I Insure a Salvage Car in Georgia?

Date: 10/17/2015 |Category: Car Insurance, Salvage Cars

If you are looking for cheap cars to buy, then one very viable option would be to use an online vehicle auction to purchase a salvage car. When you make this purchase, there are a number of factors to consider in order to make sure the car is drivable legally in the state of Georgia.

Every state has different rules and laws about these cars and what makes them salvaged, legal, and drivable. So, before you go this route, then you need to know more about what a salvage car is and the state laws surrounding it.

What Is a Salvage Car?

There are a number of different ways a car could be damaged. Of course, collisions are the most common of these. Others could include flooding, hail, fire, and theft as well. When the vehicle is damaged, the owner will file an insurance claim.

Then, an insurance adjustor will look at the car and determine how much it should cost to repair it. If the repair costs will be more than 75% of the vehicle’s value, then this is considered a total loss. The car will be “totaled”; the owner will be given a replacement, and the insurance company will declare it salvaged.

In the state of Georgia, there are two different options in the case of a severely damaged vehicle: salvaged or permit to dismantle. If the latter of these is assigned, then the car is essentially without value and it will be dismantled and sold for scrap. If it is declared salvage, then it can be bought and sold, but it cannot be legally driven.

There are two situations when a car will be given a specialty salvage title: fire or flood. In these cases, the title will list one of the two types of damage specifically and numerous parts of the vehicle will need repair before it is drivable.

In Georgia, the second a car is made salvage, then the license plates must be removed and it must be towed from one place to another.

Can a Salvage Car Be Insured?

It is not legal to drive a salvage car. You will not be able to get a tag, and you can’t get insurance coverage either. If you buy one of these vehicles, then you will need to make necessary repairs and then apply for a rebuilt title.

In most states, as long as the car passes inspection after the rebuilding, then the title will be changed and issued. This is not the case in Georgia. As a norm, the car has to be repaired by a licensed rebuilder. There is, however, an exception that allows unlicensed rebuilders to repair no more than two salvage cars per year.

Once the repairs are done, then you will need to apply for the new title status through the following steps:

You will then need to take your salvage car to an inspection location. Do not drive the vehicle to this station. It must be towed until you actually have the rebuilt salvage title. You can find a list of the approved inspection stations by visiting the Department of Revenue website.

It is only after you complete these steps and get the rebuilt salvage title that you will be able to get insurance coverage on the car.

What Type of Insurance Is Available?

When you apply to get a salvage car rebuilt and you apply for insurance, there are different ways insurance companies will look at this. They will likely want to see proof of repairs and inspection reports. Then, based on the original damage to the vehicle and the repairs, they may offer you a selection of coverages.

It is possible to get universal coverage on a salvage vehicle, but that is rare. You are more than likely going to be offered liability, which is enough to make the car legally drivable, but will not offer any coverage other than paying if you cause damage to another vehicle.

It is a good idea to do some shopping around. You may find different companies offer different types of policies and may charge differently too. You may be able to find a better deal or more coverage by looking at your options.

Where Can You Buy Salvage Cars?

The easiest way to purchase a salvage vehicle is through an online vehicle auction. You don’t have to travel to find the car and it can even be delivered to you. Additionally, this will give you more choices and options to bid on so that you can find the perfect cheap used car based on your preferences and budget.

Many people do not realize how much money they could save by choosing to buy a salvage car, but it could rank in the thousands of dollars. If this is a route you wish to take, then keep in mind that Georgia’s laws are different from other states. You will need to follow all of the regulations before you can legally get insurance on and drive that car.

Read more on the official Procedures in This State, or on Rebuilt Title Laws for Other US States. Explore our Vehicle Auctions and find info on Buying With Us.

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