Flash Auctions
Try out our new feature. Be fast. Save Big!

How to Insure Your Salvage Car?

Date: 10/23/2015 |Category: Car Insurance, Salvage Cars

You’ve got this amazing car that you bought as salvage from a used car auction. You’ve spent a long time restoring to a very high standard, and you’ve followed the salvage laws of your state to the letter so it’s completely legal to drive.

Or it would be, if you could just get an insurance company to provide more than basic coverage for it. This means more than the state-mandated minimum level of insurance, usually personal liability and property damage. You spent a long time getting everything just right, and the last thing you want is to have to be held responsible for repairing any damage it sustains in the future, especially after you just rebuilt it.

Despite this, every time you try to get comprehensive insurance or collision coverage on your salvage car, you’re either refused or quoted a very high premium price.

However, you don’t have to take no for an answer – and you shouldn’t, either. In fact, here’s how you can insure your rebuilt salvage car.

It’s Nothing Personal

First, please realize that it’s nothing personal. Insurance companies know that salvage vehicles are some of the worst risks out there when it comes to insurance coverage. Since even rebuilt salvage cars in many cases started out as vehicles that were totaled in an accident sometime in the past, insurance providers simply assume that they’re inherently flawed as a result of that damage.

It’s a simple approach that might be effective from a business standpoint, but it doesn’t take into special cases in which vehicles were properly and carefully restored and are now in very good condition.

Getting Covered Anyway

Insurance companies aren’t much for evaluating cars on a case-by-case basis too closely, as it’s simply not possible to do so when you’re managing the insurance policies for millions of vehicles. However, when it comes to salvage vehicles many insurers are willing to make an exception by providing a personal insurance inspection of your vehicle.

An insurance agent will take a close look at the outside of your vehicle and will often take several pictures of the car to serve as a baseline level in the event that you ever end up in an accident in the future. The agent will also take copious notes for his or her accompanying report, and might also delve into the interior of the car or even look under the hood if they feel it’s necessary.

The agent submits the report back to the insurer, which then makes a determination as to whether your rebuilt salvage car passes their own specific criteria. If the condition of your car meets these thresholds, you’ll be offered physical damage cover like collision and comprehensive.

It is likely that the premium price is going to be high. Still, when the alternative is to either go without physical damage insurance and stick with just PLPD cover or to not drive your car legally at all, paying more than you want for your insurance coverage doesn’t seem like such a bad idea after all.

Find information on Rebuilt Title Laws for Each US State. Explore our Vehicle Auctions and find information on Buying With Us.

Auto Auction Specialist Used car expert The largest salvage & insurance vehicle auction marketplace online.
Bid on over 200,000 vehicles for sale right now.

Ready to get started?

Register a free user account and start bidding on your dream car right now!

Sign up for free
Request a
We will call you within 1 min
We speak your language:
English, Spanish, Portugeese and Russian
< Back
  • User Registration
    • What are the rules regarding new customers and customers not in good standing?
    • Can I just buy one car?
    • I do not have a dealer license; can I bid or buy a car?
    • What information do I need to provide to register?
    • Do I have to pay to register?
    • Do I need to register to bid?
  • Auction Process
    • Do you offer live bidding?
    • What is the difference between, “auction” car, and a “buy now” car?
    • What is a Reserve Price?
    • What does the bid amount include?
    • How does the auction process work?
  • Deposits and Pre-Bidding
    • Is the security deposit refundable?
    • How do international customers make a deposit in their account?
    • How does the security deposit process work?
    • Can I cancel a bid?
    • Can I inspect vehicles prior to auction?
    • Is automatic bidding or pre-bidding available?
    • What is the total bidding amount?
    • What is a bid in active status?
    • What is a bid in pending status?
    • What is the best way to win an auction?
    • How do I search for a car available at auction?
    • How does the auction process work?
  • Post-Auction and Payments
    • What does a customer need to do to get the title to a vehicle?
    • How do I pick up the car I purchased?
    • Are there storage fees if I cannot pick up my vehicle immediately?
    • Do you Issue Temporary Plates?
    • Can I pay in cash?
    • Are there late payment penalties?
    • What are the payment terms?
    • How do I pay for an auction?
    • What if I fail to may a payment as required?
    • When is the balance due on a purchase?
    • When will I be notified of the results of the auction?
    • Bidding has ended. Is my bid the highest?
    • Why did I receive notice after bidding ended that my bid is no longer the highest?
  • Shipping and Delivery
    • How will it be mailed to me?
    • When will I receive the title?
    • Can I have the title mailed to an address/name different from the address/name on my account?
    • I have an agent working on my behalf can this person pick up my vehicle?
    • Do you offer delivery?
    • When can I pick up a car I have won at auction?
  • Understanding Salvage Titles
    • What is NMVTIS and how is it used?
    • Understanding the salvage title/rebuilt title distinction
    • What are the different types of titles a vehicle may have?
    • I received a different type of title than the one in the description. I received an equivalent title from a different state. Why?