How To Insure A Car With A Salvage Title
The need for auto insurance has never been greater than today. With so many people owning and driving motor vehicles, there is a considerable risk of being involved in a traffic accident, or having a vehicle get damaged by vandalism, theft or natural disasters. However, things can get very complicated when the vehicle is damaged so badly that it receives a “salvage” title. A salvaged vehicle can be insured, but knowing what that entails is crucial. Using auto insurance quotes can be of great help in finding insurance for a salvaged vehicle.
In many states it will be quite difficult to get the legal title, registration, and insurance for a car that has been classified as salvage. As an example, the California Department of Motor Vehicles requires that the application form includes the cost of all of the repairs, proof of ownership, a vehicle inspection by the California Highway Patrol, and a California brake and light inspection certificate. Besides the state regulations, however, you will also have to deal with the roles of insurance providers. For instance, some car insurance companies will not insure a car that they have declared totaled.
When an auto insurance company determines that the cost of the repairs that arises after an accident is greater than the value of the car, they write the car off as a total loss. The amount of your insurance settlement, if any, will be determined by your auto insurance policy and your car’s actual cash value, meaning the cost of the vehicle if purchased new, minus any depreciation. Many companies will also place limits on coverage in some way or another. This includes only providing liability insurance, or excluding coverage related to the original damage to the car.
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