Many entrepreneurial motorists are bypassing the expensive forecourt prices associated with new vehicles by falling back on nearly-new models purchased from auto salvage centers. However, the savings made by purchasing a salvage vehicle can often be outweighed by repair costs to get it back on the road and the price of car insurance.
Motorists may find that they’ll need to shop around extensively before they can find a carrier that will be prepared to insure a vehicle with a salvage title. Even then, a policyholder may find that the actual coverage they receive is limited. Because of this, there are a number of considerations that motorists should keep in mind when purchasing a policy for their salvage car.
Motorists might be well advised to consider exactly what usage they’ll be getting out of salvage vehicle before they actually commit to purchasing. If the vehicle is intended for everyday road use, insurance will be required before it can be registered with the local Department of Motor Vehicles. Naturally, plates will not be issued for legal driving unless an effective policy is in place.
A number of insurers won’t issue a policy against a salvage car because any previous claims may have deemed the vehicle to be unfit for continued use. A dedicated salvage insurance policy will offer protection from any subsequent lawsuits that might arise where the condition of the salvage vehicle is considered to be part of the reasons behind an accident. Because salvage vehicles often fall into a high-risk category, motorists may find that premiums will be significantly higher than those set for a more conventional auto insurance policy.