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If you buy a car with a salvaged title will your insurance sky rocket?

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βˆ™ 2015-06-05 16:31:26

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  • 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.
2015-06-05 16:31:26
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2015-06-05 16:31:01
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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

2015-06-05 16:31:01
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Related Questions

If you are going to buy a car with a salvaged title how much less should it book for than the same car with a clean title?

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Title insurance is a specialized type of insurance that is not generally sold by insurance agents. It is usually provided by an attorney and underwritten by a title insurance company who specializes in this type of insurance. The title insurance company relies on statements and work done by the attorney when he does the title search and he has some liability for his work. You can't just decide that you want a title insurance policy anytime. It is usually done when you purchase a piece of property. I suppose that if you wanted to pay for a new title search you may be able to buy a policy at a time other than at closing.


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Usually you can, you can buy it back from the insurance company for a "salvage" price, you will then have a salvaged title and wont beable to insure the vehicle with full coverage any longer only liability. Talk to the adjuster about it.


When a vehicle is involved in an accident and declared a total loss does the insurance get to keep it?

Yes. In most states, you can then buy the car back from them at a salvaged price.


What is needed to rebuild a truck title on a salvaged vehicle?

A salvaged title means that the car was deemed a total loss by an insurance company. There are several reasons this could have happened. It is best to talk to the owner and find out exactly what happened and why they didn't get it fixed. Once you know what happened to the car you can start to see what you need to rebuild the truck. Also looks at this website for more information: http://www.ehow.com/how_6245022_buy-truck-salvaged-title.html The biggest problem with salvage cars, is to buy it most salvage cars resellers are scamers, the most difficult thing is to buy a car you can use site like http://www.autoauctionhelp.com/ and buy a car directly from dealers or insurance auto auctions, then you simply find a cheap body shop and you can save up to 50 % of the retail price. Good Luck


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How does a salvaged title effect the value of your vehicle?

AnswerHaving a salvaged title usually means that an insurance company has determined that it was a total loss from a collision. This will significantly reduce the value and insurance companies will be reluctant to provide collision/comprehensive coverage. If you know and trust the person who rebuilt the vehicle, it can be a good deal but if the rebuilder didn't know what he was doing, it probably won't. AnswerA car is totaled/salvaged when an insurance company determines the repair costs exceed appx 75% of the car's actual cash value (percentages vary from state to state). A salvage title car that is restored and roadworthy is worth 60% of the value of a comparable clean titled car. If it's still salvage/unrepaired maybe 25%. Buying a salvage car is just like buying any other used car. Have it inspected by a pro and if it checks out and is cheap enough buy it! Keep in mind that an older car is easily totaled by insurance companies since they're worth less. A new car with a salvage title could mean its damage exceeded $15,000 and that is major


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How can you get a licence that will allow you to buy a salvaged car overseas with your company registration?

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How do you go about getting a title for a vehicle that was bought from a salvage yard that was going out of business if the salvage yard didn't have the title to the vehicle you bought?

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