The main reason people buy salvage cars is that they can save a lot of cash when compared to even a pre-owned car. Apart from the usual concerns of buying a car that has been so badly damaged that it was written off by the insurance company, dealers should also inform their customers about the likely difficulties they could face when attempting to purchase insurance for their recertified salvage cars.
What Are Salvage Cars?
Even though different states have different standards for defining salvage cars, generally speaking, these cars are essentially vehicles that have suffered so much damage either due to accident or natural calamity that it does not make sense for the insurance company to pay the repair bill and it is more convenient and cheaper to pay out the insurance in full. However, many of these cars are totaled simply because their value is less and it is not necessary that they have suffered serious damage. These cars are picked up after the insurance companies’ auction them and repaired or rebuilt in such a way that they can again be certified as roadworthy and sold to customers seeking a cheap buy.
Why Is Insurance Required?
It is compulsory for all vehicles that are driven on public roads to have liability insurance. Vehicles that have a salvage title are not permitted on public roads so there is no need for insurance. However, if the salvage vehicle has been recertified to be roadworthy, Ideal Auto USA recommends that the owner purchases liability insurance at least and preferably, full cover insurance.
Purchasing Insurance
Even though you need to have insurance for your salvage car, most insurance companies are reluctant to insure them as, despite the strict regulations, they can never be too confident that the car has been rebuilt properly and that it is actually safe to be driven on public roads. Their concern is well-founded as the extent of damage of any salvage vehicle may not always be spotted well enough and there could be issues with the structural integrity that could have disastrous consequences for the insurance company.
Extending the Insurance Cover
While Personal Liability and Property Damage insurance is relatively easy to purchase, it can be quite difficult to buy full coverage insurance from reputed companies. Some of the lesser-known insurance companies may be willing, however, with steep premiums and extensive documentation of the damage of the vehicle to protect themselves from consequent liabilities. Typically, requests for an increase in the coverage are entertained only after a detailed on-site physical inspection of the vehicle, examining all the documents regarding the salvage title, it’s rebuilding, and recertification according to applicable state laws. If the insurance premium is very high, it may not be worth it because the value of the car is not very high.
Conclusion
A salvage vehicle could be a very good buy if you are certain that the repairs have been carried out competently. Getting full insurance cover can be really difficult and it may just be wiser to only get the mandatory liabilities cover.
