Can You Insure a Car With a Salvaged Title?

What is a Salvaged Title Vehicle?

• Salvaged titles are issued to vehicles that have been declared salvage by insurance companies. If a vehicle is damaged and the value of those damages total more than the vehicle's worth, insurance carriers will deem the car to be totaled. When this happens, the vehicle is usually forwarded and sold to salvage companies. The salvage company sells the vehicle for parts. However, the companies may choose to repair and sell the vehicle. These vehicles are issued a salvage title and sold. Some state require that repaired vehicles be issued a rebuilt title before selling.
  
  

Salvage Risks

• There are certain risks that come with a salvage vehicle purchase. While some salvaged vehicles are in rather good condition, needing only minor repairs, other vehicles may be totaled due to bent frames and other extensive damages that can make the vehicle a hazard. Electrical damage, frame damage and other pre-existing conditions can result in harm to you and others. These risks become strong considerations for insurance companies when considering your insurance risk.
  
  

Salvage Title Insurance

• When seeking insurance for your salvaged title vehicle, you may find that many carriers are unwilling to provide coverage. While some carriers are willing to insure the vehicle, they are often only willing to insure the vehicle for liability coverage which insures you if you injure another party or cause damage to their vehicle. These carriers are generally unwilling to insure the salvage vehicle for comprehensive and collision coverage, meaning you would be responsible for repairing any damage to your vehicle resulting from an accident, fire or acts of nature.
  
  

Considerations

• Before purchasing a salvage vehicle, consider the vehicle's overall condition not just the price. A salvage vehicle means that the vehicle has sustained an extensive amount of damage. Check the vehicle's history to learn what damages it has sustained, and how it was addressed. If you are can't find a vehicle history report, you should reconsider your decision to purchase. Most salvaged vehicles are deemed to be extremely dangerous if they have not had professional and certified restoration.
  
  

Insurance Options

• Prior to purchasing the vehicle, speak with an insurance carrier or agent. Explain the vehicle's title and ask about coverage. If the agent doesn't offer any policies for salvaged vehicles, ask for recommendations of other carriers that do. Be flexible with your coverage selections as many carriers will have limitations on what and how they will insure the vehicle. If you can't find a satisfactory policy, you might not want to purchase the salvaged vehicle. On the other hand, you might just find a policy that works for you and your salvaged vehicle. But it's better to settle that question before making the purchase.