Salvage Title Insurance: Definitions & Articles

What Is Salvage Title Insurance?

Even though salvage title cars cannot be insured or even driven on public roads for the reason such cars a declared a total loss (when the damage to the car exceeds 60% to 90% of its total value), you can insure a refurbished and tested salvage car qualified for a rebuilt title.

However, rebuilt cars can be registered, insured, and used just like clear-title cars, though it may be problematic to get full coverage insurance for a salvage vehicle since most insurance companies refuse to provide such insurance due to the impossibility of accessing all existing damage. More often than not, companies offer liability insurance for salvage vehicles.

What Does It Cover?

You can only insure a rebuilt title car. You can always get liability insurance for a rebuilt salvage car, though getting a full coverage policy or optional coverage may be problematic due to the inability to access the real damage to the car.

How Much Does It Cost?

Regardless of the type of coverage you need, make sure

  1. To choose between at least several insurance companies to get the most competitive quote.
  2. That the price of insurance doesn’t exceed the amount of money saved by buying a rebuilt title car (otherwise, it would be reasonable to buy a clean title car). For example, full coverage auto insurance is usually not necessary for cheap cars.

Among the U.S. biggest salvage title car insurers are American Family, Progressive, Farmers, GEICO, Infinity, Kemper, State Farm, Kemper, and more.

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