Insuring a Salvage Title: What You Need to Know

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If you’re buying a car, truck or motorcycle with a salvage title, it’s essential to understand the risks involved and what type of insurance coverage you need. Here are some things you should know about insuring vehicles with salvage titles:

Insuring a Salvage Title: What You Need to KnowInsuring a Salvage Title: What You Need to Know

What is a Salvage Title?

A vehicle gets a salvage title when it’s been damaged beyond its value by an accident, natural disaster, theft or other means. These vehicles require extensive repairs that cost more than their worth. Instead of repairing them, insurance companies declare them as “totaled” and sell them at auction.

Why does Salvage Title Insurance Matter?

When insuring cars with a clean title, your insurer will pay for damages caused in an accident up to the policy limit. However, since cars with salvage titles have already been deemed totaled once before and undergone significant repairs/fixes which can raise ownership costs significantly – this means your vehicle has increased chances of breaking down or being severely damaged in another wreck.

That’s why many insurers refuse to insure these types of vehicles altogether . The few who do offer coverage usually only provide liability protection without collision or comprehensive coverage options (sometimes called full-coverage), leaving owners responsible for paying repair out-of-pocket costs or replacement fees if anything happens to their salvaged car.

Can I Insure My Salvage Car?

Yes! You can get insurance coverage for your salvage titled vehicle from specialized providers such as American Modern , Hagerty , Geico , State Farm and others who recognize the need for this sort of service offering. Supporting documentation will be required such as photographs post-repair work inspections showing that they meet state safety standards along any previous history like auto background reports prior damage status verified when reviewed may help assess risk levels.

Tips for Buying & Selling on Resale Market

  • Always inspect any used car thoroughly before purchasing.
  • Get detailed information regarding its title history.
  • Research prices to ensure you’re getting a fair deal – consider the vehicle’s mileage, condition, and pre-existing damage or repairs needed if any.
  • Disclose all existing issues to potential buyers to avoid lawsuits and misunderstandings later on – this will save you unwanted stress in the future.


Insuring a salvage titled car is relatively easy once you understand what it entails. While it may not be as straightforward as insuring a regular car with clean costs your effort will make owning such vehicle safer and can help protect both your investment and financial security. Remember that understanding state regulations governing salvage titles when purchasing or selling vehicles is imperative so always research thoroughly for guarantees!


Can I insure a car with a salvage title?
Yes, you can insure a car with a salvage title. However, it will typically be more difficult and expensive than insuring a car with a clean title.

How much does insurance cost for a vehicle with a salvage title?
Insurance costs for cars with salvage titles can vary widely depending on the extent of damage, age of the vehicle, and other factors. In general, insurance rates may be higher than those for cars without salvage titles.

What should I do if my insurer won’t cover my salvaged car?
If your insurer won’t cover your salvaged car or offers limited coverage options due to its condition, you may need to seek alternative insurance providers specifically catering to vehicles that have been rebuilt from salvaged parts. It’s important to research your options and make sure you’re getting adequate coverage at an affordable price before committing to any policy.