What is a salvaged vehicle
A salvage vehicle is a vehicle that needs to be inspected first before the Department of Motor Vehicles allows the vehicle to be registered in the state of New York.
A vehicle will be listed as a salvaged vehicle for several reasons.
- There was significant damage done to the vehicle because of an accident, theft, vandalism, flood, or falling objects and acquired by the insurance company
- Repairs costs exceeded more than 75% of the value of the car.
- Was issued a salvage title in another state and brought to NY
If the vehicle is then repaired and made road safe and an inspected is done, DMV will issue a new certificate called a salvaged title.
Can I insure a vehicle with a salvaged title
Yes, it is possible but not easy.
Salvaged titles or vehicles that have had significant damage done to them are very difficult to insure.
If an insurance company is willing to insure the vehicle, they most likely will do so for liability coverage only.
Vehicles that have been deemed totaled and issued a salvaged title need special consideration to be insured.
What’s Next?
One thing we see frequently is used car salesman selling vehicles that might have been deemed totaled in another state usually due to a natural disaster like a hail storm or flood damage.
The insurance company’s data has improved greatly, allowing them to know when a vehicle might have been involved in a major incident and then repaired for resale.
This will cause significant problems when trying to buy this car and put insurance on it. Another way you can see an issue is trying to get financing for a vehicle that has a salvaged title
Reach out to your insurance agent to have a conversation earlier on so you can get prepared with what you might need to do to get coverage.
If you don’t have a relationship with an agent or want a review of your insurance then click the button below to schedule a review with one of our trusted insurance advisors.
