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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 policies.

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:

  • Floods

  • Fire damage

  • Collision

  • 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

Be 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 representative upfront.

Using these tips, you can own a salvage title vehicle and save yourself a ton of money on your vehicle insurance policy.

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