Ways To Insure a Car with A Rebuilt or Salvage Title
After purchasing a car, one of the most important things you usually do is take care of insurance. Whether you’re buying a brand-new vehicle or a used car, it’s important to insure your vehicle against theft, repairs, and damage.
However, if you’re purchasing a car branded with salvage or rebuilt title, getting insurance for such vehicles is more complicated than with a brand new or used vehicle. This is because, sometimes, salvage cars have been fatally damaged in accidents based on assessments by the insurance company of the previous vehicle owner.
Initially, buying a salvage car might seem a good deal because you get the vehicle at a fraction of the regular market price; however, most insurance companies have stricter policies for rebuilt cars than fairly used or brand-new cars.
If you’re in the market for a salvage car and want to purchase an insurance policy for that vehicle, this article provides a complete guide on the best ways to get auto insurance for a rebuilt title. Outlined are a few things to consider before buying a car with a salvage title.
- What is a Salvage Title?
A vehicle is branded a salvage title when it meets certain conditions. Usually, most insurance companies give car salvage titles after the car has been brutally damaged in an accident, and the damage is considered not worth fixing by the insurance company. Salvage titles are given to vehicles when they are damaged beyond repairs. Cars with this title have been involved in fatal accidents, natural disasters, damaged during a riot, or similar incidents.
The cost of bringing the car “back to life” is higher or almost equal to purchasing a similar vehicle. No insurance company would cover such a cost if it’s not profitable; hence, they declare the car salvage.
- What is Rebuilt Title?
A rebuilt title is pretty similar to a salvage title. Still, in this case, cars with rebuilt titles initially had salvage titles but have undergone thorough repairs, inspection, and several tests to ensure that such vehicles are safe to drive.
Most salvage title cars are sold to scrap yards mainly for their parts, but some folks can take their time and money to restore such vehicles. Keep in mind that even after a car has passed inspection and upgraded its title from salvage to rebuilt, the salvage title would remain on its permanent record.
Not all cars can be rebuilt. Some vehicles are so severely damaged that they’ll be immediately declared “non-repairable” and can only be marketed for their parts.
- Can you Insure a Car with a Salvage Title?
A car with a salvage title cannot be insured. This is because the vehicle is deemed not “road-worthy,” and no insurance company would insure cars that are not usable. However, cars with a rebuilt title can get auto insurance coverage, but the process involved with getting the policies is trickier than with a clean car.
A car with a rebuilt title will be significantly worth less than a car with a clean title. Most insurance companies would hesitate to provide full coverage for rebuilt cars because of safety concerns, market value, and other risks that would further harden your chances of getting insurance.
- How to Get Insurance for your Rebuilt or Salvage Car
There are tons of insurance companies who would never give you insurance coverage for a rebuilt car; even if it’s just liability insurance, there are companies who just don’t offer such coverage. That means you’d have to do a lot of digging to find the right company to insure your rebuilt car properly.
If you’re just settling for liability insurance, you can easily find an insurance company with a couple of clicks and searches on google. However, if you’re searching for full auto insurance coverage, you’ll need to scour a wide range of auto insurance companies and get quotes to find the most competitive one.
Keep in mind that if the cost of getting your rebuilt vehicle insured surpasses the cost of purchasing the car itself, it might not be a profitable venture. You’d also have to find an excellent insurance company willing to offer you outstanding premiums and coverage. Once you’ve found an insurer to cover your rebuilt car, you can take the following steps to help smoothen the process:
- Get a Statement for a Certified Mechanic
Before you can ensure your rebuilt vehicle, the car must pass inspection from several agencies. If your car fails to pass inspection by the insurance company, it would be condemned, and you’d have to sell it off as scrap.
However, to ensure that your rebuilt car passes inspection, you can get a second opinion from a certified mechanic. The mechanic would quickly identify any underlying issue that might hamper your chances of getting auto insurance for your rebuilt car.
- Compare Quotes from Different Companies
To ensure you’re getting the best policies and coverage for your rebuilt car, you must consult different companies and compare their prices, terms, and conditions. Considering that you’re insuring a rebuilt car, your options would be pretty limited. It’s always an ideal decision to check different companies before finally deciding which to choose.
- Consider Coverage Options Available to You
Even if you discover a company willing to insure your rebuilt car, you’d still have to consider the level of coverage the company offers you. Several companies out rightly won’t insure rebuilt cars, while some only provide partial coverage. Before selecting an insurance company, figure out the level of coverage you’re provided.
Getting insurance for rebuilt cars isn’t an easy process. We hope this article has helped determine the best way to insure your rebuilt vehicle.