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Considerable savings can be made when purchasing a car that has sustained over 75% of damage. It can also be an extremely fun experience bringing a car back to life with your own hands. However, due to the very nature of a salvage title, insurance providers can be reluctant to provide coverage at a reasonable price.
There a number of things that you must do before you start looking for insurance for a salvage vehicle.
Finding insurance starts at the purchase of your vehicle. A car with a salvage title is defined as a car that has over 75% of damage. The first decision you will have to make is whether the savings made on this vehicle is worth it in the long run. In other words, will it be affordable to repair. It is worth having a bit of experience in this area as a salesman may try to push the vehicle on you. Before purchasing a salvage title vehicle you should always carry out a CarFax report (http://www.carfax.com) which will inform you of all accidents that the car has been involved in.
If you intend to drive your salvaged car on the roads then you will need to obtain insurance. You should be able to find liability coverage fairly easily.
The insurance company may wish to inspect your vehicle beforehand, however, in order to see whether it is roadworthy. It is worth remembering that liability coverage will not protect you from any damage to your vehicle. There are a number of insurance coverages that are designed to cover damage to your car, but insurance companies have a general reluctance to offer these type of coverages to owners of salvaged cars. The reason is that they may be structurally unsafe or have damage that the car owner may try to get compensated for in the future if they are involved in an accident.
The amount of time that some people pour into their salvaged cars means that they will want some sort of damage coverage for their vehicle. It is normally fairly easy for car owners to obtain comprehensive or collision coverage, but unfortunately for salvaged cars it is not quite as easy.
You may think it will be fine to not disclose that the vehicle is a salvaged car in order to save money on your car insurance. You should remember however, it is a legal requirement in all states to disclose the previous history of a car. This applies both to your insurance company and if you intend to sell the car. In order to obtain damage coverage there are a couple steps you will have to go through:
- Have a detailed mechanical inspection. This report will need to be written by an expert and submitted to your insurance company. This report will highlight all current damage to your car body and mechanical system. If the report does not satisfy your insurance company’s requirements, they will refuse to insure it.
- Your insurance agent must then come to inspect the vehicle to check for any physical damage to the vehicle. They will also take photos of your vehicle from multiple angles in order to keep a record of all damage to it.
Rebuilding a salvaged car is perfect past time for car enthusiasts. Bear in mind, however, the additional costs that will be placed on your insurance policy due to this. Weigh up the costs before making your purchase to see if it is economically viable. You may in the long run be better off paying more for a car that is in good condition.