Key insurance coverage you should know about when getting a salvage vehicle


A vehicle is given the “salvage title” when it has been previously damaged by any natural calamity, fire, or floods, theft or has been totaled in a wreck. Insurance companies define a vehicle to be a salvage when the estimated cost of repairs exceeds the total worth of the car.

Insurers have a specific set of standards for damage depending on the percentage loss of car value. Though these standards differ by state, it is advisable that every buyer should get detailed information on the salvage title.

Salvage Title Insurance Coverage

Some insurance companies do not provide insurance coverage to salvage vehicles even if they are roadworthy. Generally, insurance companies provide restricted coverage on salvage vehicles. The insurance which is offered by these companies includes liability insurance which does not cover losses occurred from damage. Because of the safety concern involved insurers do not provide comprehensive coverage.

A salvage vehicle is deemed unfit for the road and hence insurance companies sway away from providing collision coverage and claim only a part of the losses. Though there are few insurance companies that provide comprehensive coverage for salvage title vehicle, but the tricky part here is that they charge high premium depending on the damage and only pay low sums towards any claim recorded in future.

Fundamentals for Insuring Salvage Vehicles

  • Salvage vehicle owners should provide all the details about the vehicle damage to the insurance companies.
  • Owners should also provide details of the previous owner, accident details and submit vehicle title information.
  • Insurers should get the pictures clicked of the vehicle and obtain inspection certificate from the Department of Motor Vehicle (DMV).
  • Owners should provide a copy of the title in addition to the registration and VIN.

Premiums on Salvage Vehicle

Basically, salvage vehicles are considered in high-risk profile category and thus have higher premium rates as compared to the clear title vehicles, though this is not true in all cases. The vehicle that clears the DMV inspection and gets approved with the clear title can avail insurance coverage at lower premiums. Also, there is a possibility to bargain the insurance premium rates with the insurance companies.

Procuring Insurance Coverage for Salvage Vehicle

While the laws and administration differ from every state, the insurance coverage also differs accordingly. Essentially salvage insurers are categorized as private insurers and public insurers. Public insurers will follow the set process to avail the detailed information of salvage vehicle including the owner and would charge a higher premium with a lower claim payout. In comparison to the public insurers, the private insurers will provide economical insurance premium rates to strive the competition.


Thus, to get an insurance coverage for salvage title vehicle, provide all the damage details to the insurer. Generally, insurance companies offer liability coverage but if they provide comprehensive and collision coverage, make sure the claim amount that will be paid. In nutshell, the owner has to pay higher premiums with lower coverage and low claim payout.



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