Used Car NJ
What is Salvage title? How to articles Car Insurance

How to Insure Vehicles from Car Salvage Auctions in New Jersey ?

By Mike Richards Updated: 05/22/2019 Posted: 10/15/2015

A number of different things can happen to a vehicle to make it become salvage. It might be declared salvage when the insurance company, or the owner, decides that it would cost more to fix the vehicle after an accident than it is actually worth to them.

When this occurs, the vehicle will have a salvage title assigned to it by the New Jersey Motor Vehicle Commission. However, just because a vehicle has a salvage title, it does not mean that it is off the road permanently. These vehicles are often sold at auction by the insurance companies and bought either for their parts or for rebuilding. It is possible to get a rebuilt title for a repaired salvage vehicle in New Jersey, although it will take some work.

Paperwork and Inspections

Before you are able to get the vehicle registered and insured, first you have to go through a VIN (vehicle identification number) inspection. This is to ensure that the vehicle and the parts it contains have not been stolen.

Make sure you have all the paperwork regarding the car from the auction, as well as any of the parts used to repair it. As soon as you take possession of the vehicle, you should take photos of it before doing any work. These photos will be required when the vehicle is going through the inspection.

After the car passes the inspection, you will be able to register your vehicle and receive your rebuilt title. You will also be able to get insurance at that point.

Getting Insurance

Many insurance companies are willing to provide basic insurance for vehicles bought from car salvage auctions as long as they receive their rebuilt title and pass the inspection.

It’s important to note that in New Jersey it can be somewhat more difficult to get a higher level insurance (comprehensive, collision) for the vehicle. However, each insurance company has different rules for this, so you will want to check with several companies to see what types of policies they might be able to offer on the vehicle you bought from the salvage car auction.

Keep in mind that the laws in New Jersey can change, so it is always important to make sure you check the most recent regulations for titling, registering, and insuring vehicles bought from car salvage auctions.

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