Know About Insurance of Auto Salvage Vehicles

People have several questions in mind regarding insurance of auto salvage vehicles. Salvage vehicles are damaged vehicles available at low prices. Generally, automobile insurance companies offer medical payments insurance, uninsured motorist coverage and liability insurance for vehicles that have salvage titles. Collision and full insurance coverage might not be easy to achieve. Depending on the state laws, and individual insurance company, buyer can expect physical damage coverage.

Given below are facts on Insurance of Auto Salvage Vehicles:

• Each state has its own set of regulations that define a salvage vehicle title. On the basis of extent of damage, a salvage title is given. When an insurance company declares a vehicle as “total loss”, it falls under the salvage category. In some states, stolen vehicles or vehicles that have a serious accident history fall under the salvage category.

• Generally, insurance companies do not offer collision and comprehensive insurance coverage for salvage vehicles or even if they do so, it is for a limited value amount.

• In some states, it is mandatory for a salvage vehicle to undergo inspection either by the state police or by the department of motor vehicles of the state. Insurance companies of some states demand vehicle inspection report before issuing insurance. The insurer determines if the vehicle is safe to run on road. 

Before purchasing a salvage car at online auction, a buyer should consider all aspects from gathering information about a vehicle to the kind of insurance coverage one can expect on a vehicle, so that the purchase is worth it. Registered brokers advise, support and provide useful services to help individuals in the bidding process. Bidders should go for inspection or avail inspection services offered by registered brokers before placing a bid. Bidders can estimate the amount to be spent on repair before placing a bid. This increases the chance of winning a profitable deal.