Insurance for Salvaged Vehicles

Posted in Auto Insurance , Liability

January 30th, 2009

Consumers looking for bargain basement prices on vehicles may opt to purchase a salvaged vehicle. Many times these vehicles are rebuilt or repaired by the insurance companies who have received the title after paying off a claim to the original owner. If you are considering buying a salvaged vehicle, there are some things to be wary of, including securinginsurance for these previously damaged vehicles.

Salvaged vehicles are typically vehicles that have been rebuilt or repaired after meeting unfortunate circumstances. Some of those are vandalism, collision, floods and even being reconstructed after being officially junked. Although salvaged cars are more difficult to insure, you can indeed purchase insurance for these vehicles.

As long as the salvage vehicle has a DMV inspection certificate or a certificate from an auto-repair facility stating that the salvage-titled vehicle is road worthy, insurance can be purchased. However, the insurance offered may be bare bones and minimal as physical-damage insurance may not be an option for a salvaged vehicle. Many insurance companies may offer only liability insurance for a previously damaged vehicle.

If you are considering purchasing a salvaged vehicle, it is extremely important to conduct a thorough investigation. Not only should you speak directly to your insurance company to find out what type of insurance is available for salvaged vehicles, you also need to examine the history of the vehicle you intend on purchasing.

If you can insure a salvaged vehicle and are able to find one in your budget, be sure to calculate the overall costs of owning it. Once something is broken and put together again, it is more than likely that future repairs will be needed. If you are still considering purchasing a salvaged vehicle, make sure to have your own, independent mechanic inspect the automobile. Their expert opinion could save you grief in the long run.