Can you get collision insurance on a auto with a salvage title?

Answer 1

Doubtful.. Comprehensive Collision auto insurance is based on vehicle value which can be greatly affected by having a salvage title. The amount that the vehicle value can vary by having such title issues varies by vehicle. If you could find an insurance company to write such a policy it would most likely be a high risk carrier. This would be due to the greater potential of the vehicle becoming totaled out at value which is now considered lower than book value due to the title status.

Some carriers will write policies for specialty vehicles and classic cars which insure the vehicle for a specific value. These policies are typically higher rated due to higher cost of repair, ability to obtain parts, and other various exposures that can exist. These types of policies also typically require a vehicle appraisal performed by a reputable company. I am unsure as to whether or not a salvage title would disqualify you from such a policy but you may want to look into it.

Liability insurance is a different story. Some insurance carriers may require a vehicle inspection to ensure that the vehicle has been properly repaired. This would be to ensure that the vehicle is safe to operate.

Think of it this way.. Insurance is like gambling. They are trying to bring in more money in premium than they pay out in losses. The likely hood of a policy costing more in premium due to issues such as salvage title, antique car, specialty car, whatever the case may be; If it puts any additional risk or potential for loss it will be reflected in your insurance premium. Again, that's only if you can find a carrier to underwrite such a policy. Good luck!