The problem lies in the value of the car, which an insurance company will refuse to pay.
Buying a salvage car ( salvage or salvage ) has its advantages and disadvantages. That is why it is important to understand the acquisition, repair process, and all the restrictions one may encounter when trying to re-register with the Department of Motor Vehicles ( DMV ), or any other agency that regulates cars in a state.
Salvage cars are those that were involved in an accident that severely damaged their structure and made them a dangerous means of transportation or unfit to be driven on the highway. However, these can be repaired and put back on the streets once they go through a series of reviews with the appropriate DMV.
After purchasing one of these vehicles, it is necessary to follow the necessary steps for the Department to declare it as auto rebuilt (rebuilt), a status that allows the car to be driven again on the streets and even be emplaced. The steps to follow are therefore the following: buy the salvage car , repair it so that it passes the mechanical inspection, insure it and register it with the DMV so that it changes from salvage status to rebuilt status .
However, insuring a salvage car can be the most difficult hurdle you will ever face, as many auto companies will refuse to cover a salvage vehicle . Why?
The value of a salvage car is depreciated immediately after having been declared as a total loss , when they suffered the accident or natural disaster that put it under that category in the first stay. That is, they are no longer worth the same and this puts insurance companies in a difficult position since they do not want to assign coverage to a car whose value is doubtful.
Although some companies will cede to cover a car, they definitely will not be able to offer more than the simple coverage or that required by law, since a higher coverage would force them to pay the original value of the car, which was lost when it was declared as salvage .
It is worth mentioning that some insurance companies do not provide coverage for cars with salvage titles , but with rebuilt titles . So you would need to process the title first before you can register the car with the DMV, although the restrictions and regulations vary depending on the state where you are.
What you should be clear about when buying a salvage car is that regardless of its make, model or year, its status as salvaged or salvaged has already depreciated its value and no auto insurance can pay you a value similar to that stipulated in the market, on the contrary, they will probably offer you very little money in case of suffering another accident of collision or vandalism.