Vehicle Titles
Auto Insurance

Can salvage title be insured?


User Avatar
Wiki User
March 03, 2008 4:21AM

Most insurers will not provide coverage at all for a salvaged vehicle and consider them unsafe. Some will provide Liability coverage but not full coverage. Others will provide full coverge But in the event of Loss, especially a Total Loss, any pay out will be much lower due to the already diminished value of a Grey Market Vehicle. Salvaged Vehicles, also known as Grey Market Vehicles have higher loss rates due to mechanical and structural deficiencies, This is why they were considered a total loss by the previous insurer.

ANSWER If you mean salvage but reconstructed (roadworthy) then yes, most insurance companies will insure the car (some will want to inspect the car). I have owned to totaled/reconstructed cars that were older and totaled due to cosmetic damage and they have been fine and reliable cars to own (and cost 40-50% less). I only put liability and comprehensive on these cars (I could probably get collision but don't bother). Remember, if a totaled car is totaled again you will only get 50-60% of the value of a car with a clean title from the insurance company plus credit for any upgrades (keyless entry, new tires, stereo, etc).