Auto Insurance Tips For Salvaged Vehicles

Among the various problems that drivers have reported with buying salvage title vehicles, getting insurance coverage ranks near the top - here are some common auto insurance tips that car buyers can use to help protect themselves against negative situations involving sufficient auto insurance coverage.

• Do your homework before the sale - Drivers who want to be assured of a good auto insurance deal should not wait until after they've bought the vehicle to seek out policy options. Call a variety of insurers and talk to representatives about whether they will write a policy for your salvage title vehicle.
• Get informed by the local DMV - Every state has its own policies for salvage title vehicles. Some of these may have an impact on the documents that an insurer needs. Get up to speed on state requirements for inspections and everything else to make sure your salvage title car is seen as road-worthy.
• Provide as much inspection documentation as possible – Sometimes, the difference between rejection and an underwritten auto insurance policy comes down to whether the owner can prove that special mechanic declared the vehicle road worthy. In some states, the state police inspect vehicles as well. Any paperwork that shows dealer estimates for the vehicle can also be helpful.
• Demand fair premiums - Some salvage title car owners report that when they put their vehicle on their policy, their premiums skyrocket. In fact, a fair premium should do the opposite. Because the insurance company considers a salvage title vehicle to be nearly worthless, premiums should come down a great deal based on the fact that claim payouts will be minimal. The best way to negotiate is to talk about a value estimate for the vehicle up front. Ask an insurance representative to tell you how the company values the vehicle. Make them provide a value in writing. Then, negotiate an adjustment of the premiums to accurately reflect what the company would pay out in the event of a claim.
• Seek out alternative insurers – If you experience a lot of problems when going to the big national insurance companies, try other avenues. Some drivers report that agencies such as a Joint Underwriters Association (JUA) can sometimes help insure vehicles that some of the mainstream insurers won't touch. It may also be a good idea to get information from your states “risk pool”-any separate company set up to insure high risk drivers.

These basic guidelines will help salvage title car owners protect the investment they've made in their vehicle and stay on the road for less money. Don’t let insurance costs sink a bargain that you have found for cutting costs with a salvaged title car or truck.