Eureka, Arkansas
What is Salvage title? How to articles Car Insurance

How to Insure a Salvage Auction Car in Arkansas?

By Mike Richards Updated: 05/22/2019 Posted: 10/17/2015

If you’re looking for the right way to get insurance for a salvage car in Arkansas, you likely already know about one of the best-kept secrets for getting a great deal on a car. If you aren’t already aware of it, though, you don’t need a dealer’s license to buy a salvage car at an auto auction.

Salvage cars cost thousands of dollars less than new or used car, and anyone can buy them at auction, which means that you can take advantage of some really amazing deals on really high-quality vehicles if you know what to look for and you’re willing to put some work into repairing the car(s) you buy.

 Why Shop at Online Auctions?

You may also know that you don’t have to go to a physical auction to take advantage of these deals, either. With online auto auctions, you can save time, money, and stress, all while you have the resources at your fingertips to look up everything you need to know about the cars you’re interested in bidding on.

Going to an auction can be intimidating, and it’s way too easy to get sucked into a bidding frenzy and spend more than you planned. Worse yet, you might get all the way there, find that there aren’t any cars that really fit your needs, and then feel like you’ve wasted a large portion of your day with nothing to show for it.

That’s why online auto auctions are the very best source for salvage cars in Arkansas. You can avoid all of the hassle and stress while getting all of the information you need on the cars you are interested in buying.

 Selecting the Right Salvage Car

As you’re selecting the car(s) you want to bid on, you’ll want to look for a few things that will make life easier when you make the winning bid. You’ll want to ensure that the cars you bid on are not junked, unrepairable, or unrebuildable. If you see any of these words on a car’s title, it will not be a good salvage car unless you only want to use its parts to repair another car. Like all salvage cars, these cars cannot be registered to drive legally, but unlike cars with standard salvage titles or repairable salvage titles, these cannot be re-titled and thus cannot be made to be legal to register.

You should also check on all of the damage history on any car before you bid on it. This will give you an idea of how much time, money, and energy you’ll need to put into the car to get it back on the road. Sometimes a very low price on a car will justify spending a little bit more on its repairs, but you want to make sure that you keep a good balance and choose the best salvage car for your money.

 Getting Your Salvage Car Re-Titled

After you buy your salvage car in Arkansas, you’ll need to see to all of the necessary repairs to get it roadworthy. You may want to do them yourself to save on labor, or you may have a rebuilder do them to ensure that everything is done right the first time (in case you aren’t as mechanically inclined). Either way, once the repairs are done and the car is safe to drive and in good working condition, you’ll need to get it re-titled.

The first step is to prove that the car is yours and that it isn’t stolen. To do this, you’ll just need to show the OMV (Office of Motor Vehicles) an Affidavit of Reconstruction for Salvage Motor Vehicle. This form will require you to have full records of all of the repairs done to the vehicle to get it in good working shape again.

After you submit this affidavit, you’ll get a rebuilt title instead of a salvage title, though your car’s title will still show that it was salvaged at one point and will include damages and repairs done to it. That will be good information to have if you ever decide to sell your car, as it is required by law that you disclose that your car was salvaged and the damages done to it when you sell it.

For now, though, you’ll just be interested in insuring and registering your salvage car in Arkansas. Once you obtain proof of insurance, registration is simple and straightforward, and you’ll be able to legally drive wherever you need to go. That said, getting insurance can be tricky with a previously salvaged car.

Getting Insurance for a Previously Salvaged Car in Arkansas

You may find that the first few insurance companies that you speak with are not willing to offer any coverage for a salvage car. Some may offer liability coverage but will stop there and will not consider collision or comprehensive coverage.

The best way to make your case with these insurers is most likely to get an appraisal on the vehicle and show them that it won’t be a high-risk policy, even though it was a salvage car. You may also want to settle for less coverage for the moment and then negotiate for more coverage when your policy comes to term.

Getting insurance for a salvage car in Arkansas isn’t impossible, but it can be challenging. Do your homework and search through the insurance companies in your area, and you should be able to find coverage.

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