One way to save money on buying a car is to look for one with a rebuilt salvage title. It might be a classic car or just something you want to drive because of its look, feel, or economic benefits. Here's how to ensure you get the right auto insurance in Bristol, CT, for a rebuilt salvage title.
A salvage title means an insurer has determined a vehicle to be a total loss. A salvage title, also known as a branded title, is given to vehicles that have been totaled in accidents. A clean title, by comparison, is given to a vehicle in fairly pristine condition and has never been associated with an accident or defect.
When a car suffers damages too expensive to fix, it's considered a total loss by the state and insurance companies. So, instead of repairing the vehicle, your insurance agency pays to replace it. Usually, when the repair bill exceeds 60 to 90 percent of the vehicle's value, it's not worth repairing from the insurer's perspective. Insurers typically auction off salvage vehicles to companies that rebuild them.
After an insurer determines a car is a total loss, it issues a salvage certificate. You will no longer be able to register the vehicle or drive it on public roads until it is refurbished and passes an inspection. At that point, it can be issued a rebuilt title.
As you look for a used car, find out if it has a clean, salvage, or rebuilt title. Each title corresponds with a particular colored certificate in most states. A clean title is green, salvage is blue, and rebuilt salvage is orange. While you usually cannot purchase a salvage vehicle from a dealer, you may buy a rebuilt salvage vehicle from a private party.
You cannot insure a car with a salvage title until it has been tested for safety and functionality. Once it passes these tests, the vehicle can qualify for a rebuilt title, allowing it to be registered, driven, and sold. Most auto insurance companies provide liability coverage for rebuilt salvage vehicles, but only a few offer full coverage.
Insurers avoid offering full coverage for refurbished vehicles due to the uncertainty of assessing their condition. You still need the right car insurance for operating the vehicle. Keep in mind each state sets its own standards for what constitutes a refurbished vehicle. Ideally, it's restored to factory condition with no missing parts. Although you can save money purchasing a refurbished vehicle, it's more difficult to ensure, at least for full coverage. Nonetheless, you can still put together a protective auto policy using coverage extensions.
Make sure to get various quotes from insurers for your rebuilt vehicle. Look for one that doesn't add a surcharge of up to 20 percent. Make a decision based on what deal gives you the best coverage while staying within your budget. Talk with our insurance experts at C.V. Mason Insurance Agency, and we'll help you get customized auto insurance, tailored to your unique needs.
