Car Insurance for Salvaged Vehicle?
Progressive will insure a vehicle with a salvaged title and will give you comprehensive (other than collision - fire, theft, vandalism, etc) and collision, but at the time of a covered loss, they will only pay 40% of ACV of the same vehicle (yr, make, model, condition & mileage) without a salvaged title. Some companies may only give you liability only, some may not insure you at all. It is NOT a question on the industry standard ACORD auto application. But, TX may have a different application they use that has the question on it.
Can I get insurance for an R-title (salvage title) vehicle?
I'm thinking of purchasing an R-title vehicle from a friend. This is someone I know and trust; and I've personally inspected the car thoroughly. He bought it from a dealer specializing in R-title cars. The car was in a minor flood, but did not require much work according to the dealer. The car has no apparent rust, runs fine, etc. The car is worth under $5k, so I'd only want to carry liability insurance on it, no comprehensive or collision. Am I going to have a hard time getting insurance on this car? Our insurer is Nationwide; I've been a customer of theirs for 20 years, and have many vehicles insured with them. (I'm not sure if my history with the company will make a difference). Any advice is appreciated.
Is it bad to buy a car with a salvage title?
Not necessarily.A salvage car is a car that has been declared by an insurance agency as a total loss. Most often, these are cars that have suffered damage to a degree in which that the owner’s insurance company decided that it would be too expensive to fix the car because the overall value of the car is close to being met or even exceeded by the costs of the repairs. Insurers will write off, or “total” a car in a situation like this, and will often offer a settlement to the car’s owner in exchange for taking the wrecked car off their hands.This, however, does not mean that the car has been completely wrecked, as in some cases even relatively minor damage may be considered to be too expensive to fix in a lower value car. In other cases, however, a car can be declared a total loss if it has been stolen and has gone unrecovered for a specific period of time.Cars in any of these circumstances become property of the insurance company and are reclassified as salvage. This means the car has to be issued a new title that lists its status as a salvage vehicle under state law. Insurers then take these salvage cars that they now own and attempt to sell them off to the highest bidder at a used car auction.While each state has different regulations, there are several aspects in common. The most important one is that you cannot get a car with a salvage title back on the road without repairing it first. This means that if you do buy a damaged salvage car at auction, you can’t drive it until it’s rebuilt to the point where your state will let it back on the road once more. For most people, this may seem like a bad deal.However, there are some advantages to buying and then rebuilding a salvage vehicle. First and foremost: buying a salvage car at auction can be incredibly inexpensive, as insurers just want the car out of their possession and are little interested in recovering their costs.Additionally, if you are going to restore the car yourself or otherwise absorb the labor costs, it will be much less expensive to repair the vehicle than it would have otherwise been. This makes it a solid investment if you want your own reasonably-priced used car as a daily driver or if you own a used car dealership and you’re planning to sell rebuilt salvage vehicles to customers.Reference: A Primer on Salvage Cars and Online Auctions - Auto Auction Mall
Is a vehicle with a salvage title insurable in Austin, Texas?
I never had a problem getting insurance for my car which had a salvage/total loss title. The car was marked salvage because someone tossed a cigarette into the back seat, and destroyed the back seat. Along the way someone had repaired it.The insurance company marked it a total loss, which meant the previous owner got it cheap for his daughter, and they sold it to me when his daughter wanted a different car. I had a mechanic look through it, and he said that there were no structural or safety issues.None of the insurance companies that I dealt with had any problems insuring the car. The only caveat here is that I only bought driver liability and uninsured motorist protection, and I didn't try to get collision, theft, or comprehensive insurance (in part because the car was so cheap that it was just a waste of money to do so).
What are the disadvantages of buying a salvage title?
Insurance is one of the biggest ones.When a car gets into an accident, the vehicle’s insurer figures out how much it will cost to repair the damage. If this final figure is more than they’re willing to pay because it exceeds the value of the car, insurers will offer to write off the car by agreeing to provide a check to the owner for the value of the car instead. This is what happens when a car is marked as “totaled” in an accident (cost of repair is more than the *total* value of the car).If the owner agrees to receive money instead of getting their car fixed, the insurer will take possession of the vehicle. This car or truck then gets re-classified as salvage, a process which involves getting its old title certificate traded in for one branded “salvage” instead. From this point on, the car can’t be driven legally, and it’s just a drain on an insurer’s resources, so these salvage cars are often sold at auction to anyone who will come for them.Rebuilt salvage cars, when they come back into circulation, are therefore just vehicles that have already been totaled by another insurer. Since every insurer knows that most rebuilt salvage vehicles were at one point damaged enough to warrant them being written off, most want little to do with it.This is why they are so reluctant to work with these vehicles. They know the rest of the market is the same, and so it's back to supply and demand. IF they think they can insure you, they know most other insurers wouldn't, so they feel free to increase their premiums as much as possible.Source: Salvage Cars, Insurance Companies and You - Auto Auction Mall
Insurance on a TX blue rebuilt title?
almost all, for liability, almost none, if you want comprehensive/collision. (vehicle coverage). they don't want to pay out again on a car that's already had a claim paid on it!
What is a "salvage title"?
Depends on the State ! Most states, Salvage title means Vehicle has been reported as Damaged to the state but still has to have a title for ownership til something is done with the rest of the car. 85% can't be registered til inspected by the DOT to put back on the road and register. More info below for most stated and Texas. Most states issue a Salvage title for the Insurance Companies that paid off claims if the value, if damage totals the vehicle (car or truck) and money is owned against the vehicle or not. But also for Flood, abandoned, damaged and considered unsafe with any repair. A Salvage title can be issued. I recommend everyone to Stay away from Salvage cars UNLESS you can wrench on it as needed. Might need more repairs to pass stated inspection or just drive safely. Also tow companys will request salvage title for cars left after being towed in and left in there lot. Salvage title they can crush or sell the car. Salvage title is defferent in each state... Texas has 6 types of titles #1 regular Blue title (clear is Blue) #2 regular Cerifited Copy (like blue but blue is lost) Brown #3 Lien Holders title RED Lien holder gets Blue title and buyer is issued a Red title #4 Orange YES Orange ! is Salvage CAN NOT ,,, Be put back on the ROAD can be parted, crushed, or sold to a rebuilder #5 Blue with % marked on upper right Rebuilders title 95% loss down to 15% loss (still blue so you have to read it) #6 is Older titles like White or tan or short blue ... these are still good just before 1988 Check with your state... 5 States let you repair a car but the salvage title gets to follow the car til the end so everyone know what its gone through before you brought it. Flood cars seem to be the big thing right now because 60 % of people don't have insurance to cover flooding of their car. Rivers running over and stroms on the coast.. They have clear title but the car is bad. So check car out test drive and look everything over before you hand over the cash... As-Is Means as it sits when you buy it.
Salvage Title car questions? (see details)?
I'm am considering buyin a 03 mustang gt with a salvaged TX title. (In Texas) I know wat a salvage title is, but I would like to know if it is going to affect auto insurance in any way? Or will it effect transferring the title into my name in any way? Ect. Any info is appreciated. Thanks.
In Texas, does the responsible insurance company have to pay for the storage fees for our totaled car?
I was just recently involved in an accident and the insurance company that is responsible to pay for the damages is saying that I need to move my car from storage, because they do not have to pay for the car to remain in storage. Since I live in an apartment complex the car would have to be moved twenty minutes away, which is going to cost quite a bit and then we would have to move it again to an auto body shop back to the area I live in. So I called the place where it was stored to get a quote on how much it would cost to move it and the guy said that our car looks to be totaled and that for them to tow it I would have to pay out of pocket and I will never see that money again. Also, he said, in Texas, it is state law for the insurance company to pay storage and towing fees, he said the insurance is just saying that to get us to move it so they don't have to pay those extra fees. I don't know who to believe and I couldn't find anything online about it.