Can you buy full coverage auto insurance for salvage vehicles?
Get a fast and free car insurance rate comparison
Vehicles can get a "salvage" title when they have been salvaged or repaired when damages incurred are close to the total replacement value of the vehicle. These vehicles generally have a lower value due to factors such as safety, reduction of structural stability, major damage repair etc. By laws, a salvage vehicle will hold that title and will be indicated on the registration or title.
Auto insurance companies may look at salvage vehicles as unsafe, high risk or even unacceptable vehicles. That is why some insurers can reject or charge additional premium (surcharge rates) for salvage vehicles even when purchasing liability coverage only. Although some carriers may accept salvage vehicles for full coverage, one must be aware that in case of a total loss, one may not receive the full value from the insurance company.
Most carriers will not insure salvage vehicles for full coverage or comprehensive and collision coverage; however, if one does come across one that will, it is important to find out what their rules are on vehicle value assessment and how much you may receive in case of a total loss such as theft. It is common that an insurer will pay out 50% of what the vehicle would be worth with a clean title (not salvaged). Some vehicles can get listed as salvage even for damages from water, fire, theft, accidents or any damages resulting in a high cost vs. value ratio.
If needing full coverage for a salvage vehicle, one can shop for auto insurance quotes from a variety of companies in order to find out which insurer can offer the coverage for the specific vehicle at an affordable rate. OnlineAutoInsurance.com allows consumers to complete one simple form and instantly obtain the rates of multiple insurers.