If you buy a car with a salvaged title will your insurance sky rocket?

Answer

DON'T tell any Insurance Co. the car was totaled. They didn't ask me and the insurance was the same as another of my vehicals. (Liability only though, I mas not trying to get full coverage then) YOU CAN GET A NEW REGULAR TITLE! My experience was to first get my vehical inspected by the Motor Veh. Dept. in my state, and applied for a new title. Not A Salvage title. They wanted to see any before & after photos if I had them, (I didn't have) and receipts of parts and or repairs made etc. of which I had three totling about $300. They passed the car an went to the DMV did the paperwork etc. and got the new title in the mail later. THEN I told the Ins. Agent I decided to get full coverage even though I didn't owe anything on the car. A quick physical inspection of the car by the agent, a "clean title" & walaha!!! normal rates. Amer.Fam.Ins.

Answer

Although "W" may think he got away with insuring his vehicle without paying an increased rate, he comitted fraud in many states. By not disclosing information which you know to be pertinent to the policy rating (which he obviously does, since it sounds like he is proud of himself/herself for scamming the insurance company) he comitted fraud. If W gets into an accident and the adjuster finds out this information, they may very likely refuse to pay the claim. Although you save money now, think about this, you get what you pay for! If the car is a total, the value is not as much as it once was, as there is pre-existing damage that is obviously being covered up if you don't come forth-right with this info.

Answer

I half agree with the post above me. At my company we require a letter from a mechanic attesting to the road worthiness of the vehicle, pictures, etc for vehicles with salvage titles. After we are convinced the vehicle has been repaired to a condition prior to whatever happened to it then we will insure it at the same rates for that same year/make/model.

Your insurance does not skyrocket. There are so many false statements made regarding salvage/reconstructed cars. Check with your insurance agent. Your rates should stay the same but realize you will be paid less if the car is totaled (probably half the value of a similar car with a clean title plus credit for any documented improvements like keyless entry, sound system, newer parts, etc).

First answer by -W-. Last edit by Tobeginwith. Contributor trust: 29 [recommend contributor]. Question popularity: 281 [recommend question]