Getting a salvaged auto insured can be the hardest part of saving money through this kind of used car or truck purchase, but some auto insurance tips can help make sure you profit from getting your salvaged title car or truck on the road without too much expense. Here are some top tips for dealing with an insurance company when your ride has a “salvage” mark on its title.
Set a Concrete Value – Many of the problems with salvaged autos revolve around the fact that it’s hard to pin down a set value for a car or truck with this kind of history. So much of auto insurance rates rely on very formulaic values that the salvage vehicle presents a real problem. The best course of action is to get a professional appraisal for your salvage title vehicle and use it to convince the insurer of a “real value” that will determine claim payouts and more.
Negotiate a Safety Rating – Another concern with salvage title vehicles can be seen as a bureaucratic detail, but it’s something you will probably have to deal with. Insurers will sometimes claim that a salvage title does not have the same safety rating as one that was not previously damaged. Establishing the safety rating can be tricky. Talk through the issue with insurance reps and get an agreement in writing about whether the vehicle’s safety features can be competitively rated regardless of previous damage.
Figure Out Premiums – Because they may see the salvaged title vehicle as a ‘high risk car’ or value risk, insurers might actually ask for higher premiums for these vehicles. This is actually upside down, as the low sale value should trigger lower premiums (because claim payouts would be lower). Don’t settle for jacked up premium rates. Be assertive with the insurance rep and don’t be afraid to switch insurers until you have found a deal you can live with.
Get Claim Payout Numbers in Writing – As part of the value issue above, salvage title vehicle drivers might be liable for another problem at claim time. Without explicit agreements on payouts, the insurer may just say that a salvage title car or truck “has no value” after a crash, or wouldn’t be worth fixing because of its title status. Again, making agreements up front will help all parties to avoid these issues.
Provide Documentation – Along with documenting the deal from your end, provide car pictures, service records, and more to the insurer as necessary. Insurance companies can use the documentation that you provide to re-figure policy costs or assist in expediting claim payouts in some situations. More clarity is better when it comes to pinning down insurance for a salvage title vehicle.
Almost any experienced auto insurance rep will tell you that there are a lot of factors in getting a good policy for a vehicle with a salvage title. With tenacity and the right approach, it can be done. Use the above to secure fair rates for your bargain salvage title vehicle.