When you purchase
a used car, you have the choice if picking a car that comes with a
salvage title. Of course, any vehicle you have – savage title or not –
you will need to have insurance. Of course, debate about the
purchase of these kinds of vehicles is ongoing with all kinds of
opinions about how to deal with them, which also includes car insurance
What Does It Mean By Salvage Title
This term is applied to used vehicles that have been damaged previously through one or more of the following:
Other serious disasters
Insurance companies tend to set the damage standards at a particular
percentage of a vehicle’s value. Now, each state has its own rules in
regards to salvage titles but typically any vehicle that’s been rebuilt
will need to be re-titled. This salvage vehicle title will
denote that the vehicle was refurbished.
Due to the states’
differences, it’s hard to learn what vehicle is deemed to qualify for a
salvage title. For example, in the state of Michigan, its state police
must sign on all salvage vehicles. However, the umbrella term makes it
difficult for buyers to learn why the salvage title was given to the
vehicle and a detailed look at its history. No one can tell, just
by looking, if the vehicle was flooded, wrecked, damaged by fire, etc.
Problems With Getting Vehicle Insurance
The majority of vehicle insurance companies are hesitant to offer
insurance for salvage title vehicle because of their wariness and the
problems with setting a value on them. Kelley’s Blue Book also does not
provide any kind of values on salvage title vehicles. Therefore,
getting an actual value for these types of vehicles is still quite
difficult. And, for that reason, it’s difficult to get the right amount
of insurance coverage for a refurbished vehicle.
Claim Payments vs. Insurance Premiums
Another difficulty that comes with salvage title vehicle is the regular
premium rates and claims when an issue arises. Drivers might have some
difficulty in getting what they expect over the actual claim payment.
If there’s little communication between you and the insurance agent,
it’s probable the agent used the blue book value. When talking about a
claim calculation, a claim is worthless because of the previous damage.
When this happens, payments are often too low.
What Can You Do For Salvage Title Used Car Insurance
sure that you’re honest with your insurance agent about the condition
of the vehicle so that, should you need to file a claim, you can keep
issues at bay. If you plan on owning a salvage vehicle and need
insurance, be sure the insurance company agrees to a particular car
vehicle… in writing. If they don’t agree to a claim payment, you could
qualify for lower premium rates due to their lack of proper insurance
coverage. Before you make any kind of deal, talk with the
Using these tips, you can own a salvage title vehicle and save yourself a ton of money on your vehicle insurance policy.