What is Salvage title?

What You Need to Know About Insurance and Salvage Cars for Sale

By Mike Richards Updated: 07/26/2022 Posted: 09/25/2017

If you need a new vehicle to get around town or for your work, you might be thinking about saving some money and getting a salvage vehicle. Buying salvage can be a great option when it comes to the price of the vehicle, but you need to make sure the vehicle is in good driving condition if you want to get a title that allows you to drive that vehicle. Then comes the question of insurance. Salvage cars for sale can often be insured, but it can depend on a range of factors.

Can You Get Coverage?

The big question that most people have when it comes to getting insurance for salvage cars for sale is whether they can get any coverage at all. It is the law to have insurance, so it would not make much sense to get a vehicle you could never insure! Fortunately, you will find that you can often get coverage through insurance companies, but it is limited for salvage vehicles. In most cases, the insurance companies will only want to offer liability insurance for the cars and trucks that have salvage titles.

This means you will not get full or comprehensive coverage for the vehicle. This is because it is so difficult for the insurance companies to know how to value a vehicle that has a salvage title. They do not want to overestimate the value because if something were to happen to your vehicle, they would have to pay. The last thing they want to do is pay more than the vehicle is truly worth.

What Does Your State Say?

One of the reasons that it can be tricky to understand what you need to do when it comes to insurance and salvage cars for sale is because the laws vary between states. This means you need to do your homework and look up the requirements and regulations in your state when it comes to salvage vehicles. This will let you know what you need to do to get a salvage title and to get the vehicle back onto the road.

Once you get the salvage or rebuilt title, you can then get your insurance. However, the requirements can vary from one insurance company to another. You will want to speak with your current provider if you have one, and speak with other insurance companies out there that can let you know what type of coverage they can offer.

Be honest with the insurance companies about the vehicle. They will find out that it is salvage, and you do not want to try to pass a salvage vehicle off as a regular title. The representatives will be honest with you about the policies they can offer.

Just because you are thinking about getting a salvage vehicle, it does not mean getting insurance will be impossible, or even difficult. You just need to make sure you know the requirements and rules, and speak with plenty of insurance companies to see what they can do.