Physical Damage Insurance Requirements for a Salvage Title Vehicle

There are a lot of people who are interested in purchasing salvage title cars in the hopes of finding a more affordable driving option. While not uncommon, you should keep a few things in mind before you decide to jump on the salvage band wagon.

Proper knowledge of the subject gives a consumer more clout when entering the market, and understanding what it take to get a salvage car insured is even more important that knowing how to purchase one.

What is a salvage title, and what caused that status?

There are different rules according to the state that you live in, but the term can be easily defined as a car that has suffered so much damage that it would be counter effective to have the car repaired.

That goes for both the car’s owner and the insurance company under which the car was insured.

There is a difference however between a car being totaled and it having a salvage title. Interestingly enough, a lot of the cars are not sold for scrap, but instead restored.

There are a few types of people who have an interest in fixing salvage cars.

Many independently owned body shops will purchase a salvage title and fix a car at their own cost. After fixing the car, it will then be resold for profit. These cars are often fixed at a slower pace than a body shops paying work, however, there is more profit for a body shop with a salvage car than with regular repairs.

People who love cars also purchase salvage titles as restoration projects, along with car enthusiast, budding home mechanics often are easy targets for salvage titles.

Regardless of who is purchasing the cars, it requires a smart buyer. Not all cars are salvageable; some have problems with basic structural integrity which will make them unsafe even when restored. Using car fax is a good way to get an accurate report of the damage on a car as well as the complete accident reports surrounding the damage.

Why do salvaged cars need insurance?

Any car that will be driven must have valid insurance. Is doesn’t matter if the car has damage or not. If you are taking it from one place to the other without insuring it, it must be towed on a hitch, put on a trailer, or be transported with a professional service.

There are a specific set of rules for insurance salvaged cars. Insurance companies themselves prefer not to extend insurance to salvage titles, but if you already hold a policy with them, it may be easier to add the car to your current paper.

You have to make sure the car is road worthy prior to insuring it, often the insurance provider will have it’s own team test for the cars structural integrity and road worthiness. This is not only as a precaution on their investment, but also a matter of safety for you and other drivers.

PLPD is the easiest type to obtain for salvaged cars. All states have inspection laws that must be adhered to prior to a car being allowed on the public roads.

On the contrary, insurance providers are not that concerned with PLPD, but mainly damage that is physical.

Can Salvage insurance be increased?

Even when a car is restored, the salvage title remains with the car; you can add comprehensive plus collision coverage, but most companies will be hesitant to do so. No insurance company will cover pre-existing damage, and a salvaged car is the epitome of prior problems.

If you are able to meet some basic terms, you an be successful in your added coverage bid;

  • A full mechanical inspection
  • An agent let damage inspection
  • A full array of photos of the car

You can save a lot by purchasing a salvaged car, but you will often spend more trying to get it insured. You must take all of this into consideration prior to purchasing a salvage title.