Buying Insurance for a Salvage Titled Car
Insurance has evolved over centuries to be the way it is now. Around 1750 BC, Mediterranean sailing traders developed a system. If a trader funded his shipment by a loan, he would pay back the money lender an additional sum. He would do this in return for a guarantee by the lender to cancel the loan in case the shipment was lost or stolen while in transit through the sea.
Since 1925 (when auto insurance schemes started mushrooming), nearly every state in the USA has adopted an obligatory insurance scheme for automotive insurance.
Is it possible to get a salvage car insured?
With online salvage car auctions getting popular, many people wonder if they can get their salvage titled cars insured. In contrast to what many believe, it is possible to insure a salvage titled car. A salvage titled vehicle is one that has been deemed to be damaged by an accident, vandalism or natural calamity, to an extent that its market value is less than 30% of the blue book value of the same vehicle in a no-damage condition. Once you buy a damaged car, it is advisable to look for companies offering insurance of salvage cars.
Most companies offering such insurance do not offer more than liability coverage for the salvage vehicle. A comprehensive plan might be very difficult for damaged cars. It is advisable to do proper research to look for an appropriate auto insurance salvage title for your situation.
When do you need insurance for a wrecked car?
The big question is should one really get the insurance for a salvage car? It can be a great idea, but the route to tread on ultimately depends on the car owner. Every state in America has specific laws on this. Some states are okay if you delay purchasing insurance until it is off the road and the owner gives in writing that the car will not be driven until it is restored and cleared of the salvage title. Other states ask owners to turn in the license plate and deposit a fee to reinstate it once the car is ready to be insured. One needs to consider how long the salvage vehicle will be driven and then decide about the kind of insurance that will be appropriate.
It is crucial to know the policies for your insurance company to avoid ending up spending more money than you bargained for on a salvage titled car.
Cost of insuring a Salvage Title
The cost will be almost the same as that of insuring a regular vehicle. The major difference is in the value placed on the car. Although, the final cost will depend on the extent of damage the car suffered when it was totaled.
It is important do look around and do some research to get the best insurance. One can search online and use various tools for free quotes. Many insurance websites offer extensive help and tools to help car owners buy insurance for salvage cars.
