A salvage title is assigned to a vehicle that has been declared a total loss by an insurance company due to severe damage from an accident, flood, fire, or other catastrophic events. In California, a salvage vehicle cannot be driven or insured unless it has been repaired, inspected, and issued a revived title by the Department of Motor Vehicles (DMV).
Insurance Requirements for Salvage Title Cars
Just like any other vehicle, a salvage title car in California must carry at least the minimum required liability insurance. This coverage pays for bodily injury and property damage caused to others in an accident where you’re at fault.
Comprehensive and Collision Coverage
While not mandatory, comprehensive and collision coverage can be beneficial for salvage title car owners. However, many insurance companies may hesitate to offer these coverages due to the increased risk associated with salvage title cars.
Challenges in Insuring a Salvage Title Car
Insuring a salvage title car can be challenging. Many insurance companies may charge higher premiums, limit coverage options, or even refuse to insure these vehicles due to their history of severe damage and potential safety issues.
Steps to Insure a Salvage Title Car
Before insuring a salvage title car, it’s important to:
- Obtain a pre-insurance inspection from a certified mechanic.
- Get repair estimates to understand the cost of necessary repairs.
- Research potential insurers that offer coverage for salvage title cars.
Can I get insurance for a salvage title car in California?
Yes, you can get insurance for a salvage title car in California. However, the process can be more complex and may require a thorough inspection and repair of the vehicle. Some insurance companies may only offer liability coverage for these vehicles.
How does the value of my salvaged car affect my insurance premium?
The value of your salvaged car can significantly affect your insurance premium. Since a salvaged car is worth less than its undamaged counterpart, insurance companies may offer limited coverage options or charge higher premiums.
Will my policy cover damages from future accidents if I insure a salvage title car?
Yes, your policy can cover damages from future accidents if you insure a salvage title car. However, the coverage may be limited depending on the severity of the previous damage and the type of insurance policy you have.