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    • Commercial Auto
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May 10
Salvage Title in Car Insurance

Understanding Salvage Title in Car Insurance

  • May 10, 2021
  • auto insurance

A salvage title vehicle is a vehicle that has been damaged heavily at one point in the past. If a vehicle is damaged heavily by an accident, car insurance companies calculate the total costs of damage and compare it with the percentage value of the car. If the costs of damage supersede its value, the car insurance company can by law decide it is not financially profitable to repair the car, thus declaring it a “total loss.” The insurance company can then issue a “salvage certificate” for the car. The certificate simply implies that the car cannot be driven, sold, or registered in its present state.

Many times, the car is sold to repairers or dismantlers by the car company. If it is successfully repaired, the car must pass a basic safety inspection before the vehicle company decides to issue a new certificate. It is labeled so future owners can recognize that it has been rebuilt or salvaged.

Different Kinds of Damage

Flood Damage

Cars damaged by floods can also get salvage titles. In some states, flood-damaged cars are issued titles stating “flood damage,” but other states just use the term “salvage title.”

Hail Damage

Cars damaged by hail can also get a “salvage title” issued if the state does not specifically give “hail damage” titles.

Theft Recovery

If a car gets stolen and is missing for a certain period of time, the vehicle insurance company is compelled to pay for the vehicle. However, if the vehicle is found, the company is clear to get it salvaged. Some states issue specific salvage titles to cars recovered from theft.

 Vandalism

If a car is vandalized, either by spray paint or by simply overturning, the car could also get a salvage title though the issue is not specified. It is just noted as “salvage.”

Non-Repairable Cars

Some cars are hugely damaged. With incredibly low resale values, these cars can get a “non‑repairable” title, which some states call a “junk title.” In cases like this, the car is ordered not to be sold but taken to scrapyard to be sold for parts or destroyed.  Non-repairable is not directly a salvage title, but it is important to note in case you come across cars with such designation.

Should You Buy A Salvage Title Car?

If you are comfortable with the idea that your car has been rebuilt or salvaged in the past, it shouldn’t be a problem. Salvage cars are often more cost- effective and can be bought as a second or assistant vehicle. Some of these cars are more prone to damage and mechanical issues.

Following are the three ways in which you can lower the risk of buying subpar salvage cars.

  1. Put the vehicle up for inspection.
  2. Purchase the vehicle from a trusted repairer.
  3. Demand the original repair estimate.

Insuring a salvaged car comes with its peculiar requirements. If you need any help with auto insurance of any kind, the experts at Gant Insurance Agency in McKinney, TX, are here to assist you. We will help you find the right coverage for your situation.

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