A salvage title is given to a car that has been so damaged that the insurance company has written it off. Auto insurance companies usually write off cars that are too damaged to be repaired or those that will cost more or almost the same amount to repair as the cost of a replacement car.
In some cases, however, an auto insurance company errs on the side of caution and gives a salvage title to a car that is damaged, yes, but not so much that it can't be fixed and used. Still, insuring such a car is not easy, and the following restrictions may apply:
Fix and Have the Car Inspected
Obviously, you will have to fix up the car before you can drive it. However, it is not just enough to fix up the car; you will also have to have it inspected to satisfy the authorities that the car is roadworthy. Your state's department of motor vehicles (DMV) is the body tasked with inspecting salvage title cars.
Optional Coverage May Be Hard To Come By
Just because you have repaired a salvage title car and it has passed the DMV's inspection, it doesn't mean that it will be easy to insure. Auto insurance companies are generally wary of covering such cars due to their high risk of hidden damage. This is understandable because the decision to write off a car is not taken lightly; after all, it costs the insurance company money.
Coverage Related To Original Damage May Be Excluded
Even if you do get insurance coverage for your salvage title car, the coverage may be limited in nature. In most cases, future damages related to the accident that totaled the car may be excluded from the insurance coverage. For example, if the car was totaled in a flood, then don't expect the current insurance company to pay for the car's repair if you unearth damages that can be traced back to the flood.
State Regulations Apply
Lastly, you should also know that states have different laws when it comes to salvaging and insuring totaled cars. What is legal and possible in one state may not be permitted in another state. Keep this in mind before importing a totaled car from another state because you may have a problem registering and insuring the car in your state.
If you want to insure a salvage car, start your search earlier than you would for any other car with a clean title. This is one of the cases where it pays to talk to a real (human) auto insurance agent to help you explore the available options.
Contact a company like Manassero Insurance Agency Inc for more information and assistance.