Can you insure a car that has a salvage title?

A salvage car can be more difficult to insure, but you can still – and should – get the right insurance policy. Can you insure a car that has a salvage title? In short, yes: You can insure a car that has a salvage title. But don’t expect the full meal deal. Most insurance companies offer liability insurance on salvage titles. That makes sense – assuming you pass the required inspection for your car’s registration, you’re not more likely to hit anyone just because your car has a salvage title. Your likelihood of causing harm is not increased, so your property damage and bodily injury liability should be the same as it would be on a car with a clean title. However, liability may or may not be the end of the line, depending on your condition, your insurance company, and the physical condition of your salvage vehicle. Many insurance companies offer collision coverage on salvage cars. The question is, do you want it? In the event of a collision, most insurers only pay up to 80 percent of the car’s calculated market value. This means that if you add up your salvage-title car, you’ll only get 80 percent of its replacement cost [source: CarInsurance.com]. Collision insurance premiums are not likely to be higher for an auto salvage. Again, this makes sense. It’s not like repairing a salvage car would be more expensive than repairing a similarly damaged title clean car – but for the same premium, you get less. It’s worth it? The choice is up to you. Lastly, most insurers do not offer comprehensive salvage car insurance. This type of insurance covers any repairs (after meeting a deductible), so it works almost like a guarantee (minus that pesky deductible thing). Because most agencies that would loan money for a car require comprehensive insurance, your inability to obtain this type of insurance on a car title salvage probably means that you will have to pay cash for it. For information, take a look at the links on the next page.

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