At this time it is common for Insurance Companies to carry out auctions of recovered cars or with salvage title, so they increase this type of units in the vehicle fleet, if you are going to acquire one of these units, it is necessary that you are aware of what they are, why they are so cheap and if they can be insured like any car.
What are salvage cars or salvage vehicles?
They are cars that have been damaged either due to material damage or theft, the insurance companies repair them and sell them through virtual and face-to-face auctions, at a lower cost than their commercial value. The original invoice is exchanged for an invoice from the insurance company.
Can salvage vehicles be insured?
Not all insurance companies cover the vehicles recovered from the same or other insurers, and assuming that it enters their policies, they generally have the limitation in compensation, since they pay only 80% to 60% of the value of the unit on the invoice and some They ask for a prior physical review to ensure them.
It is important to take into account that not declaring that the unit is a “Salvage” and that an insurance company bill is available, may be a limitation in the payment or compensation of the same, especially in total loss due to theft or shock.
If you have such a unit or are about to acquire it, it is necessary that you take it into account and do not forget to declare it and make that point very clear with your agent and the insurer
Before buying a salvage unit, ask the reason for the loss, if the unit was for total loss due to collision, make sure it is 100% repaired, you can check the following:
- That the air bags have not come out, since otherwise you will have multiple electrical problems.
- That the chassis is not out of square
- That the blow has not been in the Arrow, since if it is not well repaired you may lose the traction of the car
- That the steering has not been damaged, you may lose control of the car
- If the blow was directly on the engine, ask if it was changed or repaired, if it was repaired it is better that you do not get attached to the car and see another option.