wrecked car
What is Salvage title? US States Rebuilt Title Rules Car Insurance

Is It Possible to Insure a Salvage Auction Car? 

By Mike Richards Updated: 05/22/2019 Posted: 10/21/2015

It is very common to find salvage cars in car auctions. However, many people worry that they won’t be able to get insurance coverage for their salvage vehicles.

While it is true that they will not be able to find insurance for a vehicle that has a salvage title, since you can’t even get it on the roads, this doesn’t mean that the vehicle is destined to be used for parts or to end up in a junkyard. It just means it first needs to be rebuilt.

Know the Laws in Your Area

When you buy salvage cars at an auction, it is important that you first understand exactly what is wrong with the vehicles and what you will need to do to get them back to a roadworthy shape. The amount of repairs needed will vary based on the vehicle, but make sure you do not cut any corners with the repairs.

In some states, you will be able to complete the repairs on your own. In other states, you will need to have the repairs done through a certified and approved mechanic. Know what your state requires.

You will also need to take care of paperwork such as the original salvage title, as well as bills of sale for all of the large parts used in repairing the vehicle. Make sure you have all of these available when you are trying to get the rebuilt title.

What Insurance Is Available?

After you go through the process of rebuilding and getting your rebuilt title, you have get insurance for the vehicle.

Liability insurance, which is the minimum you need, is easy to get through just about any insurance company. Insurance providers do not mind offering liability because it simply covers the damage that your vehicle potentially does to other people and property. What they do have a problem with is offering comprehensive and collision coverage, since it is difficult to get an accurate value of a rebuilt vehicle.

For this reason, you will find that many of the insurance companies will not provide this type of coverage. You need to  take some time even before you buy your salvage car to contact some companies to see what type of coverage might be available.

When you are choosing an insurance provider, make sure they are charging you a fair premium. Since your rebuilt car has a lower value than a vehicle with a normal title, they should not charge an exorbitant amount for your coverage.

You can see that it is possible to get the insurance you need. Just make sure you do the research on what insurance companies are willing to provide if you want to have anything higher than liability insurance.

Find information on Rebuilt Title Laws for Each US State. Explore our Vehicle Auctions, as well as finding more information about How These Auctions Work.