Understanding Insurance Adjustments

What Is A Salvage Title And How Does It Affect Auto Insurance?

Buying a car with a salvage title means you are buying a car that was severely damaged at one point. This is not necessarily a bad thing, as long as you understand it before you buy it, but it may affect your ability to get car insurance on the car, or it may affect the rates you pay. Here are several things you should understand about cars with salvage titles and the effects this has on auto insurance services.

The definition of a salvage title

Every car has a title, and this title is what defines the car's make, model, and VIN number. When a car has gone through a major accident of some type and has been repaired and fixed, it often ends up with a salvage title. Cars have this type of title to alert buyers that these vehicles either were completely totaled or had some other type of major damage, and if you buy a car with a salvage title, you should understand this. The car you are buying may have been totaled in an accident, or it may have been flooded at some point.

Risks of buying a car with a salvage title

If you buy a car and see that it has a salvage title, you may want to do a little research to find out what type of problem the car had. Additionally, you may want to get the car inspected by a reputable car mechanic before buying it. Cars with salvage titles might be completely fine and safe to drive, assuming the repairs were completed accurately and thoroughly, but there is also a chance that these types of cars might have issues. There might be structural issues that could make them unsafe to drive, or there might be other types of issues that could hinder the safety of the vehicles.

Effects a salvage title may have on auto insurance for the car

Most insurance companies will insure cars with salvage titles as long as the cars have been inspected and have passed the inspections. If you are going to purchase a car like this, you may want to ask your insurance agent what you should do about it, simply to make sure you can get a reasonably priced insurance policy on the car if you buy it.

If you recently purchased a car with a salvage title, you should contact your insurance company to find out what you need to do to get insurance on it.