Auto Insurance for Salvaged Vehicles

Any vehicle that has been previously totaled (the repairs cost more than the value of the vehicle) and then returned to a safe, operational condition is considered salvaged. Most often, it is not immediately apparent whether a vehicle has been salvaged without checking the registration. It is, therefore, important when shopping for a used vehicle, to do a thorough check of the registration and check for mechanical signs of repair. When insuring a salvaged vehicle, there are a number of things to consider.

To begin with, consider if the vehicle is safe. Many salvaged vehicles are repaired by part time mechanics at privately own garages. This can create a number of safety concerns when the vehicle is in operation. It is important to double check all work done to be sure proper parts have been used and no short cuts taken. It is also important to never drive a vehicle that has parts installed which were meant for another year, make or model. If you are involved in an insurance claim and it is found out that improper parts were installed, they may deny the claim if they determine these incorrect automotive parts was the cause of the claim.

Moreover, consider that most auto insurance companies will only pay half the fair market value on a salvaged vehicle in the event of a claim. This is a somewhat controversial practice, but lawful. If a vehicle is salvaged, that means it has been totaled in the past. This is because the fair market value of the vehicle has been compensated at least once already and should not be again. Insurance is not meant to overcompensate or improve the financial standing of an individual, it is meant to bring them back to even when faced with a loss.

When purchasing a vehicle with a salvaged title, it is important to first consider the overall mechanical integrity of the car, as failing to do so can result in an insurance provider refusing to pay a claim. If improper parts have been installed on a vehicle, or if inadequate work has been done to restore a salvaged vehicle, it can cause problems when purchasing insurance or when filing a claim. Secondly, it is important to consider the way in which insurance companies offer insurance for salvaged titled vehicles, as it can be different from insuring a car with a clean title. As salvaged cars typically cost less, and are generally worth less, insurers deal with them in a different manner.

Purchase a Cheap Automobile at a Salvage Auto Auction

Once a car has been repossessed for whatever reason, or if a car that is slightly older in make or model has not been claimed or purchased, it may be put up for sale in salvage auctions. This does not necessarily mean that these cars are not of good quality, but there are some things you’ll need to be aware of when you’re shopping at a salvage auction; here are a few tips that will help.

You will most likely be viewing salvaged cars at a public auto auction, which means that there will be plenty of people that are bidding on the same vehicle(s) that you want. Because you will have some ‘competition’, it is very important that you organize your budget before going to the auction, so that you will be very clear about your limits before you start the bidding process. One of the main reasons for this is that you will have to pay additional fees after you win the bid on the car at the salvage auction; and buyer’s premiums can be about 10 percent of the total price of the car.

Another very important thing to be aware of is to make sure that you’re able to see the title of the car before you take it from the lot. The only chance you have to get out of a bad deal at salvage auctions is if the title is falsified, and you wouldn’t know what type of allowances you have if you don’t have the accurate title.

Another option is to shop online for the salvage auction cars that you think you may want. If you want to shop online you may also want to check out the Salvage Direct website. This online resource will give you all the links to used automobiles that are of decent quality, and you’ll also find links to other vehicles you may want to purchase, such as boats, recreational vehicles, snowmobiles and motorcycles. Another website you can check out ridesafely.com. Here you will get information on live or online salvage auctions that you may want to attend.

You can also find great motor vehicles from Honda and Yamaha, and customer service is available in three languages. You can even go to one of the distributor locations in the U.S. to pick up your new vehicle after completing your purchase online. Quality cars like Lexus models, as well as Mercedes are featured on the site, but you can find more economic models such as Toyota on the site as well.

You’ll also find out where the car is physically located so that you can place your bids wisely, and the deadlines for placing the bids that you want are listed the sites for salvage auctions as well.

Salvaging the Most Out of Your Dead Vehicle

If you have a car that is completely dead and would cost more to repair than what it is worth, then you can still make some money off of it. Even if the car is beyond repair, there are engine and body parts that are still functional and could be salvaged. There are auto mechanic shops, salvage yards, and many more who would be interested in buying those parts off of you. Don’t just give up and send it to the junk yard. They are simply going to take the car and do exactly what you can do. They are going to sell the parts to any individuals who come there looking for what is on your old car.

The engine

Even though part of the engine is dead doesn’t mean the entire thing is. The car battery may still be good, the alternator, air conditioning unit, belts, cam shaft, and so much more can be sold because these are items that are frequently sought out by individuals. So it is a good idea to take advantage of that by placing a sign in front of your yard or an ad in the paper. That is if you know how to safely remove the car parts on your own. If you do, then you can maximize your profit on the car because many individuals seek out salvage engine parts before they will go to the auto parts store and buy new ones.

The body

The body of the car is also a money maker for you. Just like engine parts break down and need replaced, body components are damaged for a number of reasons. A person can damage their car in a wreck, someone can purposely inflict damage on their car, or their car can become physically damaged during a natural disaster. In these cases, doors, hoods, trunks, side panels, fenders, and even the wheels and tires are needed to fix those damaged areas. They can easily have the spare body parts installed on their car and refinished to look like nothing ever happened.

Need some help?

If you do not know how to remove the parts yourself, then you can employ the help of someone who does. You may have to pay that individual, but you can still make money with the auto salvage parts of your car. Don’t just simply sell it for a few hundred dollars. You can certainly get a lot more out of it if you sell it piece by piece. Then again, if you don’t have the time to sell the parts, then it might be in your best interest to take it to a salvage yard and allow them to buy it off of you. They will rebuild the car and sell it as a whole under a salvage title in order to make a profit after buying it off of you and replacing the parts of it that were defective or damaged.

No matter which route you decide to take, you can make your dead vehicle a profitable one for you. Don’t simply throw a “for sale” sign on it and hope that someone who needs spare parts will buy the whole thing. Selling it in pieces will prove to be more profitable. However, even selling it to a salvage yard is going to be more profitable than some of the other alternatives, such as dropping it at a junk yard for them to make a profit off of your junk. Go ahead and get yourself a piece of the pie. You bought the vehicle and you cared for it, so it is only fair that you are able to get something out of it in the end.