by erb1953 » Wed Feb 20, 2008 01:51 am
Is it hard to get insurance on a vehicle that has a salvage or Reconstructed title? What steps would one have to go through to prove that the vehicle was back in good running condition? Will going through a normal state inspection be enough or are there other steps that you have to take to get these titled vehicles insured?
Posted: Wed Feb 20, 2008 04:19 am Post Subject:
It probably varies from insurance company to insurance company.
I think it can be rather difficult and I have heard some companies will not even write a policy on a salvage title. It could prove cost effective in the end for them if something isn't properly fixed such as the frame and it somehow causes an accident (god forbid). Google some things, you will be amazed what you can find!
Posted: Wed Feb 20, 2008 04:37 am Post Subject:
Apparently, the owner may not face a problem obtaining coverage for the reconstructed vehicle but as diem has mentioned, it may depend on the insurance company.
Posted: Wed Feb 20, 2008 05:11 am Post Subject:
Is it hard to get insurance on a vehicle that has a salvage or Reconstructed title?
Well, you may wish to ask your carrier about it. Whereas, some may insure a car with a salvage title without objection, the other may refuse to do so under the same conditions. Hence, if you are planning to purchase a reconstructed car clarify the insurance issue form your insurer.
However, obtaining the liability coverage on the salvaged car is a good idea. The car may not worth for the collision and comprehensive coverage, as the value will be too low. But the liability coverage will keep you covered for the third party liability issues.
Hope the inputs help. God bless!
Karla
Posted: Wed Feb 20, 2008 06:33 am Post Subject:
I've never heard of a carrier asking about this or checking (I'm not even sure how they would check, other then a claim check).
Posted: Wed Feb 20, 2008 04:58 pm Post Subject: On Salvage Titles
Is the title you possess an actual salvage title or is it a title that states that the vehicle was Prior Salvage. I can only tell you how salvage titles are handled in my state. If you have bought a salvage vehicle and you wish to transfer the title to a title that you can obtain a license, you may have to go through a highway patrol inspection to determine that the parts used to reconstruct your vehicle were not stolen. The inspection does not insure that the vehicle was repaired safely or in a manner that you may want to drive it. You should pay a reputable collision shop for an inspection to ease your fears if this is a reconstructed vehicle.
I just examined a 2004 jaguar that the rebuilder had epoxied two nuts that had been broken that hold a front strut to the unibody of a car. Had this broken loose, it would have caused a serious steering issue that could have placed the driver and oncoming traffic in harms way.
Many times people purchase salvage vehicles that have been repaired and do not realize the salvage title may be transferred and all you have is a piece of salvage titled in your name now. Call your state Department of Revenue or the department that issues titles and have them address any concerns over whether the title you have is one that a license can be issued for.
Given that the risk is of greater potential for liability problems, I can see why an insurer would not want to insure a salvage vehicle, especially from some of the repairs I have examined. Have the insurer put in writing why they refuse to insure your vehicle, so you can address your concerns from that point forward.
Posted: Sun Apr 20, 2008 06:57 am Post Subject: insurance
yes, you can get insurance on a salvage/reconstructed vehicle.
Posted: Sun Aug 09, 2009 05:55 pm Post Subject: Missouri
I recently considered buying a vehicle with a salvaged title here in Missouri. My insurance company told me this -
Having a Salvage Title with a good vehicle identification number(not altered) * will allow Liability coverage only. Which only covers the other vehicle involved in the accident.
In regards to a Claim, if the vehicle in question has a reconstructed title and deemed street worthy then in lieu of a loss, 80% of the claim will then be covered.
* I didn't think I should show the name of my company! Anyway, I hope this helps. It helped me make my decision!
Posted: Mon Aug 10, 2009 12:00 pm Post Subject:
Whether or not collision and comp will be allowed on a prior salvaged vehicle is strictly a company to company decision. I routinely ( :roll: ) handle the 'second' totals on cars the company I work for has insured....
Posted: Mon Aug 10, 2009 12:29 pm Post Subject:
I agree... if a carrier knows the vehicle has a salvage title they typically won't write comp/coll on it. Makes sense, as they would be charging comp/coll based on a non-salvage ACV but once they see it has a salvage title they are going to pay much less.
Posted: Wed Aug 12, 2009 01:41 am Post Subject:
My insurance company here in Missouri said they would gladly write a policy for liability coverage on a minivan with a salvaged title.
If I want to go through the process of getting it deemed "road-worthy", they would give me full coverage insurance. However, if I have to file a claim for damages, they told me up front that they will only pay approximately 80% of the damages.
Hope this helps!
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