Salvage title cars are vehicles considered a total loss because their repair costs exceed their total value. Typically the total damage of the car exceeds 75 to 90 percent of its value. An insurance company declares the car a total loss and the Department of Motor Vehicle issues a salvage title.
What Is a Salvage Title?
A salvage title lists the car as refurbished. The type of damage on the car includes:
- Hail damage
- Flood damage
- Car accident damage
Sometimes the DMV may list the car as rebuilt. Although they have separate meanings the terms are used interchangeably depending on state law.
What Is Salvage Title Insurance?
Salvage title insurance is insurance coverage offered by car insurance companies. Most insurance companies only provide liability insurance on the vehicle. Other companies offer full coverage, but pays a low amount if the driver is involved in an accident. However, the amount of insurance required on salvaged cars varies from state-to-state.
What Are the Requirements to Obtain Salvage Title Insurance?
A driver may have to submit photographs so the insurance company can evaluate the vehicle’s condition. The driver may also be required to:
- Provide detailed information about any repairs to the car
- Submit car title
- A DMV inspection certificate or inspection documents from a local garage
Will I Pay Higher Premiums on My Car?
Yes. Car insurance company considered salvaged cars high risk. Insurers who offer liability and comprehensive coverage usually charge higher premiums. Many drivers pay month-to-month premiums instead of yearly premiums.
Where Do I Buy Insurance for My Vehicle?
A driver has the same car insurance company options as with non-salvage title cars. Some drivers have encountered problems getting coverage. Traditionally, companies provide coverage according to a vehicle’s Blue Book value. They can’t do that with a salvaged car because there’s no Blue Book savaged car listing.
Should I Consult an Attorney about Salvage Title Car?
A salvage title car can be a good deal as long as you understand what you’re buying. An attorney will assist you by explaining your legal options and rights regarding your salvage car.