What is Salvage title?

What You Need to Know to Insure Salvage Cars

By Mike Richards Updated: 05/22/2019 Posted: 09/21/2017

When you spend your time looking for the best deals on online car auctions, you are bound to run across a few insurance salvage cars for sale. These are cars that are drivable but have been deemed too inefficient to repair. Instead, insurance companies classify them as salvage and sell them off, offering the owner a settlement to buy a new car.

Buying insurance salvage cars for sale is a great way to get a low-cost vehicle that really has a lot of potential. You could fix it up to sell it, or you could keep it yourself and enjoy saving some money. But either way, if you intend to drive it, you have to insure it. And getting insurance on a salvage car can be tougher than it sounds. Here’s what to do.

Gather Knowledge

First, it’s important to know all the ins and outs of the insurance required. Find your state laws to ensure you need insurance, and contact a few local insurance agencies to find out what they may offer for a salvage car. Next, you need to gather all the information you can about the car’s past. The insurance company will want to know the damage, the extent of damage, what repairs have already been done to the car, and much more.

Shop Smart

You may be tempted to start with your own insurance company to get a great deal, but many insurance companies specialize in salvage cars. Look for companies around you who can offer even better deals thanks to their expertise. You may want to choose liability insurance only, but even then, you can expect to pay higher premiums with insurance salvage cars for sale.

Two Things to Always Do!

When shopping for insurance on a salvage vehicle, there are two things you should always do. First, always read your policy very carefully to ensure that you understand exactly what is covered on your salvage car. Second, always be sure to shop around before, during, and after buying salvage insurance. The best coverage and the best price may change from time to time. There’s nothing wrong with following the best deal when it comes to your salvage car’s insurance.

Now That You Know

Now that you see how easy it is to get insurance for salvage vehicles, you’ll be able to head into bids more confidently. This simple process is just a matter of contacting those insurance agencies that do offer salvage title insurance, and asking them to start a quote. You’ll get a better deal the more you remember about the car’s history, but in many cases, the insurance agent could even help you figure out what you need to tell them to get that deal. Then you just get back to getting excellent deals on insurance salvage cars for sale through online car auctions.