If you buy a car with a salvaged title will your insurance sky rocket?
You can usually find Liability insurance for a salvage vehicle if you look around a bit. Most Companies will not offer you Full coverage for a salvaged vehicle. Some will offer liability only, Many will decline to offer any coverage at all declaring the vehicle as prohibited from the Insurers rate plan. This is because most Insurers consider a Salvaged vehicle to be inherently more dangerous than a non-salvaged vehicle. It is not going to skyrocket, but you may not be able to get collision or comprehensive coverage on it
- I have a salvage/reconstructed car right now with liability and comprehensive. Since a reconstructed car is worth roughly 40% less than a comparable clean titled car I will be paid 40% less if the car is totaled again plus any credit for any verifiable upgrades (car alarm, new sound system, etc). Rates will not skyrocket, but you will be paid if you trash the car, so don't pay too much for it in the first place and make sure it is a good car - get a re-purchase inspection by a pro.
- Of course it is going to skyrocket.Not only will it go up but
the amount paid to you in the event of an accident is not even
worth paying the premiums of insurance at all.Who knows if you will
even get paid by the insurance company.The rates are all a scam
anyways just like new car prices.You should not buy a salvage
titled vehicle anyways.There are a lot of things that can be wrong
with the car that you are not made aware of and may cost you
through the roof to get it repaired properly on top of the inflated
rates for bad coverage you wont get.
- Vehicles with a "salvage title" are seen as being worth less
(or worthless) compared to the same vehicle with a "clean title".
This has nothing to do with the actual quality or condition of the
vehicle itself (indeed, i have a couple salvage title cars which
were a great bargain and very reliable). The insurance rates will
most likely be approximately the same, but in the event of an
accident and insurance settlement, the vehicle will be considered
by the insurers as almost completely valueless. When it comes to
salvage title vehicles (as with any used vehicle) buyer beware.
- When you purchase a repairable vech ( the decision between a parts only and repairable is the insurance co)
- In Mass prior to being able to register and insure the car.you must have it inspected by the State Police after its been repaired
- Once this has been done your good to go.
- As for the cars value, yes the title does state, "reconstructed" former salvage.
- When you insure the car, you pay the same rate for insurance as someone who has a clean title.
- If you paid less for insurance it would indicate that the car is worthless than another with a clean title. but the insurance co doesnt allow for that. if they try to pay don't settle they must pay you on the book value (minus any prexisting damage)
- Example; Car is stolen and recovered after 30 days, owner has been paid for the car, its sold for salvage but with a repairable title
- If the insurance company has a problem with paying a claim on a salvage car maybe, they should sell them for parts only
All of the above is not necessarily correct.
- I guess different states have different laws. I drive a car that has a salvage title. I didn't have to have the vehicle inspected by the state police after it was repaired. I didn't have to have anyone look at the car. I have full coverage insurance on the vehicle, and I dot pay any more than I do for any of my other vehicles. Also, the car is the best, most reliable used vehicle I have ever owned. I have been driving it for over a year and I haven't put any money in it for anything other than upkeep and gas.
- Laws regarding salvage cars vary from state to state. A reconstructed salvage car is worth less than a comparable clean titled car (KBB doesn't ever value them) and insurance will likely pay you less for it if it's totaled again (how much so varies but somewhere around 40% less than a clean titled counterpart is a good guess plus credit for upgrades with receipts). Your insurance does not skyrocket, however. Keep in mind that none of this really matters if you paid a reasonable price for the car to begin with (say, 40% less than a comparable clean titled car), so should you total the car, you should get a fair cash out from the insurance company. I own a salvage/reconstructed car and just put comprehensive and liability on it since the car's not worth much anyway. But boy, it's the best car I've ever owned and it's been trouble-free!
- Only buy salvage cars that are at least 8 years old since it doesn't take much to total/salvage an older car since they're not worth much. Now some states salvage theft recovery vehicles - these make excellent purchases but again, they are devalued in the market due the branded title so don't pay retail for them even though there may be no damage whatsoever.
- Depending on your state, the vehicle may not be eligible for full coverage. Remember that a salvage title means that the car has already been declared totaled and most likely it was an insurance agency that did so. These vehicles have already been paid out to someone and a vehicle that was paid out as totaled will not be paid out again. Texas does not fully cover salvage vehicles. You can get liability coverage; you may get uninsured/under-insured bodily injury; uninsured/under-insured property damage might be available for vehicle contents.
- I've rebuilt/owned a number of totaled cars in Indiana. The rules do vary greatly from state to state. In Indiana anyone can rebuild a totaled car. All that is required is a police inspection for stolen parts. Illinois only allows licensed re-builders to rebuild cars. Sometimes the salvage brand seems totally random. All most all stolen recovered cars get branded salvage and mileage not actual. Here the brand can be removed with insurance company wavier on stolen recovered damaged less than a certain % of value as long as the title doesn't say mileage not actual.
- I've never had an insurance issue, but I've never made a claim. The insurance costs were the same as a regular car. I did have a buddy with a rebuilt Suburban that was stolen and never recovered. The insurance company would not pay full book value because of the branded (salvage) title. As I recall, he got about 20% under book value.
- Rebuilt cars can be a great value, but favor people who keep their cars for long periods of time. Usually the warranties are voided. They can be hard to sell because banks usually won't finance branded cars and people are skeptical. I've had no troubles selling mine, but they were nice cars 6-10 years old and worth less than $4000 when I sold them. A $10,000 rebuilt can be a very hard sell.
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My insurance provider, Hanover, told me that they would only write liability coverage, and not full coverage on my truck that was flooded and totaled in New Orleans.
What argument can be used when an insurance co claims a totaled car is salvage and deducts from the payment but the title doesn't say it is salvage?
Answer . Your question is unclear. Did the insurance company declaire the car that was insured was a total loss. After that they would pay you for the entire value of the vehicle and keep the car since they paid you for it. The insurance company can then sell the damaged vehicle at an auction and… make up for some of the loss or they can let the insured keep it and deduct the value from the claim settlement. I am an insurance agent but not a claims adjuster.. Your questions is indeed unclear but I am assuming your car got totaled and they paid you less, as though it was a totaled vehicle to start with. They might know something you don't. If you purchased the car in the last 18 months from a dealer or person who gave you a clean title, the car may have in fact already been totaled but they decided to not file a claim and instead fixed it themselves at a cheaper cost and passed the car (and clean title) on to you. Meanwhile, the insurance company might have totaled the car and reported it as such. Or, the car was totaled in another state, moved to your state (a process called titled washing) and got a clean title for the short term, long enough to resell the car with a "clean title" even though it was totaled. When you renew your registration the title will come up salvage. Did you run a Carfax on this car prior to purchase? ( Full Answer )
Answer . Yes, but according to my insurance company, Nationwide, they won't (and the rep I talked to said it was industry practice) cover comprehensive or collision- so you'll be covered for any liability to inflict on other people/property, but any damage to the car itself, or theft, won't be co…vered. Essentially, if the car is Salvaged, it has no value, so it won't be insured.. Answer . Shop around. I think Geico and Progressive will do more than liability but remember - a salvage vehicle that's been restored properly is only worth roughly 60% of the value of a comparable clean titled car - so, depending on the age and condition and value of the car it might be best to just do liability coverage. ( Full Answer )
Answer . \nMany companies will but the policies vary from state to state even with the same insurance company.
Answer \nYes with some companies you can. As long as repairs have been made. It could affect the amount you would get paid in event of loss though.
Answer . Yes, you can certainly get liability on the vehicle, but comprehenisve and collision may not be a very good value since the insurance company will probably not want to pay out much in the event of another collision. In fact, they may refuse to allow comp and collison on a salvaged title.…. Answer . \nYou may have to make a few phone calls but you should be able to find satisfactory coverage.. Answer . \nWe do all of the time, howwever we are very carefull about not paying for the same damage twice. We would not recommend covering the car for comp or collison due to those coverages having been maxxed out. We would also want the state to inspect the vehicle to be certain it was road-worthy. We then tell our clients that should they choose to repair the car to bring us the documentation so that we can prove to the underwriters that all repairs have been made. Otherwise liability only is still available. ( Full Answer )
It is a good idea for some people if you can do your own work and know what was originally wrong with the vehicle. If you will need to take it to a shop for everything that goes wrong, a salvage titled vehicle will be very expensive to operate. Recognize that many lending institutions will not loan …money on a salvage titled vehicle, and if you are ever in a collision you will not get full value for the vehicle. Answer It all depends on why it was salvaged in the first place. Since cars are totaled/salvaged when repair costs exceed 50-75% of the car's value (depending on what state you're in), an older car can be totaled for simply cosmetic reasons since they're worth less and easily totaled - even $2k in body work will total an otherwise mechanically sound older car like a '95 Volvo or Honda . Now a newer car that's been totaled is a problem since it could have sustained over $15k in damages and that's major. It all boils down to why it was totaled, are there before and after pictures and are the repairs top notch. If it's been totaled due to flood damage RUN! These are problematic cars that are not easily restored and may have a lifetime of quirky electrical problems. Buying a salvage/reconstructed car is no different than buying any used car. Do a Carfax, get a pre-purchase inspection, make sure the frame's straight and if it all checks out and you like the car buy it BUT don't pay more than 60% of the value of a comparable car with a clean title since that's all it's worth and plan on keeping it for a while to get your money's worth out of it since resale is harder. And contrary to all the bull you hear, you can get insurance on it from most companies but since it's worth less they will pay out less if it's totaled again or stolen so don't pay too much for it! I own a reconstructed car presently (I bought it off Craigs List and the branded title was hid from me until I went to register the car) but it's the best car I've ever owned and I only paid $1800 for it (once I found out it was branded the cheesy-sleazy guy refunded me some money) and spent another $1000 to bring it up to top notch mechanical standards (major tune up, new belts and hoses, rear brakes). A great deal and it looks and drives fine with no problems after 20,000 miles, so if it's a good car that checks out I can think of no disadvantages to buying such a car! Consider this: a one year old car gets rear ended and sustains $5K in damage. It gets repaired and gets to keep its clean title because it's worth $12K. A ten year old car with the same damage would get a salvage/reconstructed title because it's only worth $4500. A clean title, therefore, does not mean a clean car. At least with a salvage title you know some truth about the car and can go from there. The naysayers will disagree of course, but do your homework, be smart and save some moolah. ( Full Answer )
in most states, even if a salvaged vehicle has been repaired it is still a 'branded' title...and thus worth less.......in the states i work in a fully repaired salvaged title vehicle is worth anywhere from 30-50% less on a total loss, (reduces the actual cash value)........now, if salvaged vehicle s…ay is worth 4k and damages are 1k, then they will repair the damaged portion...... ( Full Answer )
Answer . It means that the car has been wrecked and rebuilt.. The following eleven states also use Salvage titles to identify stolen vehicles - AZ, FL, GA, IL, MD, MN, NJ, NM, NY, OK and OR.. So, in these states a "Salvaged" Title could mean it was wrecked and totalled or it could also mean tha…t it was just stolen. Also, to clarify, no damage at all has to ocur while being stolen for it to receive the "Salvaged" title. Be leery though. Sellers could use the "stolen" excuse for a title to have Salvaged on it, but in reality it was really totalled. ( Full Answer )
yes, to some degree. Any car with a salvage title, (in my opinion as a Broker) should NOT be on the road! Sorry to be so blunt.
Answer . No, No, No, a thousand times NO!!! You are just asking problems.. I have purchased salvage cars twice with fine results. It all boils down to why it was declared a total loss by the insurance company. Older cars are easily totaled, even a minor fender bender can turn an older car into a… salvage vehicle since older cars are worth less and if the damage costs more than 75% of the car's value the insurance companies total it. Now a newer car with a salvage title spells trouble since that could mean the car sustained over $15K in damages and that's major. You just need to know why the car was totaled, have it inspected by a mechanic, don't pay too much (it's worth roughly 60% of a comparable car with a clean title) and run it til it dies since they are harder to sell than clean titled cars. Still, I've purchased a Toyota and a Volvo with salvage titles and they are the best running cars I've ever owned. People always say run from salvage cars,which is a blanket statement that is often untrue and unfair.. Consider this: a new car gets rear-ended and has $5000 in damage; it gets to keep it's clean title. The same damage on an eight year old car would total it. Same damage, different title. A clean title, therefore, does not mean a clean car. At least a salvage title is honest and upfront about prior damage! ( Full Answer )
Answer . It depends on: who rebuilt/repaired the vehicle, what was wrong with it that required it to be rebuilt, whether it's valuable enough to overlook some potential problems and whether you'll be able to cover the entire cost since banks don't like to loan on a slavaged title.\n. \nSalvaged… titled vehicles tend to have mechanical problems and you'll need to put some money aside to pay for the little things that go wrong. ( Full Answer )
When a car with only liability insurance and a salvaged title is totaled a second time what is the responsibility of the at faults insurance company as far as replacement?
Answer . \nThe title is irrelevant, they need to put you in equal transportation during the claims process and issue you a check based on the cars book value. If they give you less then you feel is reasonable you do have the ability to negotiate. You better have logical well thought out facts …tho. In other words, what will it cost to replace your vehicle with an equal to your vehicle? ( Full Answer )
Answer . Liability, certainly. Comprehensive and Collision might not be worth what you would need to pay since they would only give you a fraction of the value of the vehicle if you were in another collision and the vehicle were to be written off again.
My Opinion, NO! I would not touch it. It has been totaled and as such must have had extensive damage. If repaired correctly it may be safe. But if repaired incorrectly, it may be an accident waiting to happen. I might buy a salvaged car if I knew for sure what damage it had and who & how it was rep…aired. A motorcycle on the other hand is one vehicle I would not ever buy that had a salvage title. My opinion: The above statement does not take into consideration how easily an insurance company will "total" a motorcycle. It is not necessary that it have "extensive damage." I have seen bikes that have been knocked over and had only fairing damage (scratches etc) that were totaled by their insurance companies. (And yes, the bikes were checked out and verified to have incurred ZERO damage other than to the paint on the bike). Also, I've seen bikes layed down, and likely had real structural damage that were fixed by the owners, never reported, and maintain a clear title today. The point is, there are bikes with salvage titles that are perfectly fine, and bikes with clear titles that have underlying problems. It is important to check out the bike thoroughly no matter what, and to make an educated decision based on the evidence. my 2cents, the dude is right, if a like a , touring bike gets tipped over too badly it could be 'totaled' because the repair of the fairing, accessoried and such would cost too much.. It could still be safe to ride if all the cosmetic was fixed. But on the other hand, if the frame was 'tweaked' it might ride o.k., at slow speed around the block, around town..but when you get up to speed on the freeway, then it might go into that ' uncontroable wobble' and then ur in deep trouble, because trying to slow down just makes the wobble worse, speed ing up makes it less, bottom line ur dead meat, ur gonna crash. Even just buying a used bike ( private party), is scary unless u are positive it hasn't been in some type of accident. ( Full Answer )
Answer . no. . I have a car that is financed through a bank. I recently foundout that it has a salvaged title and I am having problems withgetting full coverage insurance. the bank along with me didn't knowit was a salvaged title at the time so what can I do.
no, it should go down ANSWER No, it shouldn't go up or down (check with your insurance agent) but since it's worth up to 40% less than a comparable clean titled car you won't get the full price of the car if you total it again! Depending on its age and your insurance rates it might be best to… just get liability coverage. try this site where you can compare quotes from different companies: insureinfo.us ( Full Answer )
Answer . 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 alread…y 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). ( Full Answer )
A salvage title car will bring far less that one without a salvagetitle. Deduct about 20% from the retail value.
If you need to apply for a salvaged title, complete the form and return it to the:. Alabama Department of Revenue . Motor Vehicle Division â Title Section . P.O. Box 327670 . Montgomery, AL 36132-7670 . www.dmv.org DMV.ORG - The Unofficial Guide to the DMV
Copart Auto auction is one of the largest salvage vehicles auctions. They have yards all over the USA. You can buy there almost every vehicle (salvage cars, motorcycles, boats, RVs, trucks). The auction is online so you don't even need to go out. You can register with Copart here http://www.easyexp…ort.us/?a_aid=49e6f684c12b9 ( Full Answer )
Nope, but full disclosure is a must! The title should be branded so the buyer will know anyway.
Yes, but you won't get much for it - even if it's been restored to look like new you'll still only get around 40-50% of the value of a comparable car with a clean title. Probably better to sell it privately.
It depends on many aspects, however since it already has a salvaged total it will be significantly lessened than if it didn't already have a salvaged title. Your insurance company should be able to give you specifics as to why they are offering what they do.
When you bought the salvage, the junk yard should've given you a 'salvage' title. . Answer . You don't buy cars without getting a title. Talk to your state DMV and hopefully it's not stolen! Good luck.
You cannot legally. Once a salvage always a salvage. At best you can get a "rebuilt" title.
what happens if you buy a car unaware of salvage title?. well, if it was from a dealer you have recourse. if it's from a private seller, too bad...UNLESS they sold you the car with a clean title when they knew it was salvage. did you look at the title before you bought the car? if it was clearly br…anded as salvage or totaled you're out of luck but if it was a clean title when it actually wasn't you can try and get a refund from the seller or sue. If you sue you will have prove the seller knew the title was salvage at the time of sale. good luck!! ( Full Answer )
If it's not driveable it's worth 20-25% of the value of a comparable clean titled car. If it's reconstructed and roadworthy it's worth 60% of the value of a comparable clean titled car.
It's not necessarily bad. I have purchased salvage cars twice with fine results. It all boils down to why it was declared a total loss by the insurance company. Older cars are easily totaled, even a minor fender bender can turn an older car into a salvage vehicle since older cars are worth less and …if the damage costs more than 75% of the car's value the insurance companies total it. Now a newer car with a salvage title spells trouble since that could mean the car sustained over $15K in damages and that's major. You just need to know why the car was totaled, have it inspected by a mechanic, don't pay too much (it's worth roughly 60% of a comparable car with a clean title) and run it til it dies since they are harder to sell than clean titled cars. Still, I've purchased a Toyota and a Volvo with salvage titles and they are the best running cars I've ever owned. People always say run from salvage cars,which is a blanket statement that is often untrue and unfair.. Consider this: $4000 in rear end damage on a new car = no salvage title. Same damage on an 8 year old car = salvage title. Same damage, different titles. Lesson: A clean title does not mean a clean car. At least with a salvage title the truth is up front. ( Full Answer )
Yes. Getting insurance and plates with a salvaged title car should not be a problem. It shouldn't affect any of that... the only thing you need to worry about is if the place you got the car from properly fixed all of the problems on the vehicle.
Yes and no. Insurance companies, as a general rule, will not provide full coverage insurance for vehicles with salvage titles they will however provide liability only insurance.
The salvage title has to do with obtaining a loan on the car. However, I would disclose it.
Doubtful.. Comprehensive Collision auto insurance is based on vehicle value which can be greatly affected by having a salvage title. The amount that the vehicle value can vary by having such title issues varies by vehicle. If you could find an insurance company to write such a policy it would most l…ikely be a high risk carrier. This would be due to the greater potential of the vehicle becoming totaled out at value which is now considered lower than book value due to the title status. Some carriers will write policies for specialty vehicles and classic cars which insure the vehicle for a specific value. These policies are typically higher rated due to higher cost of repair, ability to obtain parts, and other various exposures that can exist. These types of policies also typically require a vehicle appraisal performed by a reputable company. I am unsure as to whether or not a salvage title would disqualify you from such a policy but you may want to look into it. Liability insurance is a different story. Some insurance carriers may require a vehicle inspection to ensure that the vehicle has been properly repaired. This would be to ensure that the vehicle is safe to operate. Think of it this way.. Insurance is like gambling. They are trying to bring in more money in premium than they pay out in losses. The likely hood of a policy costing more in premium due to issues such as salvage title, antique car, specialty car, whatever the case may be; If it puts any additional risk or potential for loss it will be reflected in your insurance premium. Again, that's only if you can find a carrier to underwrite such a policy. Good luck! ( Full Answer )
Depends on the existing title, if the salvage company owns the vehicle and it does not have a salvage title then they would be just another owner like anyone else and this vehicle would have a clean title assuming that there are no lean holders. On the other hand if the vehicle in question has alrea…dy received a salvage/non repairable or similar title then salvage/non repairable or similar title would follow the vehicle not a clean title. ( Full Answer )
it means that at some point the vehicle was either wrecked or in aflood if its in cali then probaby a wreck the insurance companyseither pay to have it fixed or if the damages are to much they mayscrap and pay for a replacment vehicle. then the vehicle is eithersold @ an auto auction or is smashed t…hen someone with a re-salelic buys the vehicle at a low low price then they make the repairsand not always to the standereds they need to be for safety , airbags and bad welds in frame are jsut a few things I have seen . ****************************************************************** Well ....not quite. Short answer is a car that has been declared'totaled' by insurance and repaired and offered for sale withsalvage title. After inspection by licensed shop. You need not havea re-sale license to buy or sell one. ( Full Answer )
What if your car was hit and it has a salvaged title dose the insurance co have to pay you the value of your car?
Insurance is meant to get you back relatively close to where you were before the accident occurs. The states view of your title should have no bearing.
Not legally in Texas. I would believe the same laws apply in other states too. If the vehicle is rightfully yours, you can file for a "Lost Title".
Some companies will let you buy liability insurance. almost none will offer full coverage. A salvage title means the car has already been totalled before.
Yes they do as long as the car is in as good working condition as a used vehicle. I currently own a salvage title vehicle that was considered salvage through state farm. It only suffered flood damage. I purchased the car and had it fix and now they insure my car. They even let me get full coverage!
The salvage title is used to title a vehicle that has been paid out by an insurance company. This may be because professional repairs exceed 75% of the value of the car or may be because the car was stolen and not returned within the time required by law such that the insurance company must pay out …the total value. Depending on the age of the car a salvaged car may have had no damage, very minor cosmetic damage, or major damage. A vehicle that is considered not repairable is instead titled as "junked". ( Full Answer )
A rebuilt salvage title is issued when a vehicle has been declared a total loss. When that happens, the original title is "retired", and the salvage may be sold--often by an insurance company that paid the owner and acquired the salvage. As a way of recovering some of what it paid, the salvage will… be sold by the insurer. The buyer of it may then repair the vehicle to make it road-worthy. The repaired vehicle is then issued a rebuilt salvage title in order to be "legalized" and used as a vehicle. The fact that it has a rebuilt salvage title will generally reduce the value of the car, because any buyer will know that the vehicle has at one time been totaled. ( Full Answer )
If the engine is blown or if the owner just decides that he would make more money off parts than the actual car
most insurance companies will insure a vehicle with a salvage title. As long as it is state certified.
Yes you can. Check with your motor vehicle department in your state. In most states, you will have to repair the damage, get the car inspected and pass inspection before they will issue a salvage title. This process will take several months.
On every auto application, there is a question will ask: "Does the vehicle have a salvaged or branded title?" If this is the case, you will not be able to put full coverage, (comprehensive and collision coverage) on the vehicle. Sometime you can get special exceptions from your insurance carrier to… get the full coverage put on if all damage was repaired. It is much harder to get full coverage on a salvaged title vehicle. ( Full Answer )
I know of no insurance company in any U.S. sate that will give you full coverage on a salvaged vehicle.
Most insurance companies will not need a copy of the title. That's because we generally have our own means of verifying the title and ownership. If the company does request a copy of your title it is usually because when they went to verify the vehicle information with the state, it came back as a …mismatch or a no hit. ( Full Answer )
I believe you can, but collision and comprehensive would be atotal waste of your money on such vehicles and any responsibleagent should inform you of that before agreeing to sell you thepolicy. So while you can, you shouldn't!
You only need insurance if you are going to tag it and drive it. If it is just for parts or scrap, you don't need insurance.
A salvage title can be caused by a car having been damaged in a previous wreck also if a car has been previously stolen and the owner was already given a replacement before the car was found then the stolen car may receive a salvage title