What is salvage car insurance?

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Here's what you need to know...
  • Salvage car insurance is insurance for vehicles that were involved in an accident, vandalism, or a flood
  • Some insurance companies will specifically name their coverage salvage car insurance
  • Salvage car insurance is a bit different from other types of car insurance options

When a person has an auto accident that totals their vehicle, in most cases, they allow the towing company to take it away and they file their claim with the insurance company, assuming that they are going to dispose of the vehicle.

What really happens, however, is that the towing company gets to keep the vehicle and all of its contents if the owner doesn’t come and make a claim on it.

If they fix up the car and sell it, or they sell the damaged vehicle to a third party who fixes it up and sells it, this is considered a salvage vehicle.

Get your salvage car insurance quotes online by entering your zip code!

Why do I need to know what qualifies as a salvage vehicle?

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It is important that you understand what a salvage vehicle is so that you aren’t confused if an insurance company refuses to insure your vehicle because it is a salvage vehicle.

What an insurer pays out for a salvaged vehicle and charges to insure it depends on the damage sustained and the car itself.

It is also important that you know that you are buying a salvage vehicle because the overall value is far less than buying a vehicle of the same type and condition that has never been in an auto accident.

You don’t want to pay market value for a vehicle that doesn’t have any real market value.

Can you get salvage car insurance on your vehicle?

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In most cases, you will probably be able to find an insurance company that will insure your salvage vehicle, although you may find that your choices are limited depending on the nature of the salvage.

There is no guarantee that you will be able to get insurance, but you should be able to get something.

What surprises many people is the value that the insurance company places on their salvaged vehicle when they purchase coverage.

When an insurance company insures a salvaged vehicle, they only place a dollar value on the vehicle that equals the value after the accident.

There are issues with salvaged cars. If you believe you repaired the damage and you didn’t, and you are in a car accident, your injuries could be much more severe because of the lack of safety of your vehicle.

After you put work into a vehicle and possibly spend a few thousand dollars on it, not having the insurance to pay for that investment can be financially devastating.

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How can I avoid buying salvage car insurance?

The simple answer to this question is to not buy a salvage car. This leads to the next question of how to know if a car is a salvage car.

This leads to the next question of how to know if a car is a salvage car. Fortunately, this is a simple enough question to answer as well. Here are three steps to take when buying a car:

Here are three steps to take when buying a car:

  • If you purchase a brand new car, then it isn’t going to be a salvage vehicle. It is the used cars that you need to worry about. If you are buying from a reputable car dealer, then you probably won’t have to worry about this issue either.
  • However, before you purchase from a car dealer, ask about their policy regarding the selling of vehicles that have been in an auto accident. If they aren’t willing to guarantee that their vehicles are accident-free and put it in writing as well, then you need to walk out the door.
  • You can also purchase your own proof about a vehicle that you are interested in buying. Because every car has a vehicle identification number (VIN) or unique serial numbers to identify the vehicles, you can purchase accident reports on those vehicles.

There are no laws protecting you should you unknowingly purchase a salvage vehicle. That is why it is important to have all of the facts when you are buying a used vehicle.

How expensive is salvage car insurance?

For the most part, salvage car insurance is about the same price as traditional insurance. The real difference is the value placed on your vehicle.

If you are looking for ways to save money on your salvage car insurance, then you need to start right here with a free quote tool.

The bottom line is that the best way to save money is by comparing prices.

You can start right now by entering your zip code and getting your online car insurance quotes!

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