Automotive

Should you Insure Your Salvage Title Car on Your Home Insurance Bundle?

When looking for a budget car in the market, one might always be fascinated by the low-priced cars that look as good as new. You can even land upon some good cars with low mileage, and they would be available below market value. So, where’s the catch? For starters, these cars are Salvage-title, and if you want to buy one, you should definitely know a little more about them. 

You might also wonder, does insurance cost more for salvage title?. You have more to think about if you are on a home & auto insurance bundle. Getting a cheap car might sound just perfect when you are thinking about the money, but after looking at the consequences, you will hardly buy them. But, if you still want to buy a salvage-title car on your average insurance bundle cost, then you can definitely do so by all means. 

First of all, there are many companies that offer good home insurance bundles. You might have insured all your family cars under the same bundle. However, you can never be too sure when insuring your Salvage-title car on a home and auto insurance bundle. If you ask why then it’s because these cars aren’t just totaled, they come with a lot of risks, and you should know all about them. 

Salvage Cars and Why Should you Avoid Them?

Not every shiny thing is gold, and salvage-title cars are a perfect example of it. They might look all new and fine, but their parts have been changed, and you can never know how dependable are they. If you really want to save money, you can buy a used car instead of getting a salvage-titled car. 

Let’s get into the basics. When a car gets extremely damaged (not necessarily due to an accident or a collision), and the cost of repairs exceeds the total market value of the car, then the insurer declares it as a total loss. Repairing a vehicle with an amount of money that is greater than the original value of the vehicle is what a “total loss” is all about. 

In every US state, there are different minimum loss percentages required to declare a car salvaged. Usually, it is between 70% and 90%. The minimum required percentage is called the threshold. In Oregon, the threshold is 80%, and in Oklahoma, the threshold is 60%. 

Every vehicle that is declared total loss has its Salvage Certificate issued by the insurer. After declaring the vehicle as a total loss, the insurance company usually sells the car to salvage yards and rebuilders or simply sells it in a vehicle auction. 

You should know one more thing here: not every salvage-title car has had an accident. There are many situations that can declare a car as salvage-title-

  • Riots- Many riots cause good damage to several cars. Some are burned, and some are left with numerous dents and broken glasses. In many such cases, cars are declared as salvaged-title.
  • Floods- In areas of heavy rainfall and prone to floods, there have been many cases of cars that are total losses. Since water can highly damage the electrical components of a car, the repair costs can sometimes exceed the market value of the vehicle.
  • Theft- After a stolen car is recovered, it will never be in the same condition again. Thieves never take care of your vehicles like their own. Their irresponsibility can lead to big damage to your precious vehicle.

Is it Possible to Insure Your Salvage-title Car with Home Bundle?

To be true, insuring a salvage-title car isn’t that easy. Most insurance companies will not give you full coverage with collision and comprehensive. However, they will give you liability coverage. 

Since it is very difficult to provide an actual price to a salvage car, as they are 20-40% less than their counter vehicle with a clean title. Moreover, one can never be certain about the safety of a salvage-title car. The rebuilders might have restored the health of the vehicle, but you can never rely on their word. Moreover, there’s always the possibility of some internal damage that might have been overlooked at the time of repairing. All these reasons make a salvaged vehicle more prone to risks and clearly cost more insurance price.  

Should you Get Salvage Car Insured on Home Insurance Bundle?

Probably not. Since home insurance bundles usually have full coverage, your insurer might not want to include a salvage-title car under it. Considering the risks, you should always look into better options, and with a little more investment, you can always get yourself a fine car in your budget. 

I hope this article gave your a beer knowledge of the salvage-titled cars and what are the risk factors in buying them. If it helped you, then leave us a comment below and share this article with your friends and family members. 

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