Salvage titles and insurance

[PDLNSX]

Curious, if you buy an NSX with a salvage title-is it difficult to get insurance?
I can hear the insurance company saying--" why would we insure a risk that
has already been written off" ?

 

[R13]

Curious, if you buy an NSX with a salvage title-is it difficult to get insurance?
I can hear the insurance company saying--" why would we insure a risk that
has already been written off" ?

It will depend on the company. Many of the larger, more conservative companies will not even touch a salvage-titled car. You will be able to find a few, though, that will still take a look although their rates may be more expensive. You might try Progressive. They generally have a policy for anyone unless their car is on fire in the parking lot at the very moment they walk into the office/make the phone call.

Aside from that, ask an indepedant agent who will have access to multiple companies' underwriting guidelines and may be able to find a taker for you.

Above all else, be honest about it. Sneaking it onto a policy won't do you any good when you need to make a claim as they may be able to deny it based on the undisclosed salvage title.

 

[NSXclear]

AAA will insure a salvage car, but they will only payout 50% if it is a total loss.

 

[sahtt]

Most will give you liability. Liability only in such a situation may be cost effective.

 

[Nsex1991]

Progressive will give you full covrage

 

[Big_D]

Yes it is more difficult to insure with full coverage. The problem will be determining a fair market value if there is an accident.

 

[yeaiwonder88]

I dont know what you guys are talking about Ive, gotten full coverage from 3 different offices.

 

[Brylek]

It may vary by state. In IL it doesn't metter what the title sais when you're insuring, you get the same rates both both way coverage as everyone else. In case of total loss... State farm will payout 100% value regardless, allstate will payout 75%. I don't know about other companies.

 

[shawn110975]

The real question is could you sell it if you had to get rid of it?? or would you take a loss? if its gonna be a track car or something then maybe,, but the average Joe will not buy it Salvaged title!! good luck

 

[powerneedy]

I think you guys are mis informed as the banks and insurance treat salvaged title cars as if they are just a clean title car. of coarse of a total loss there not going to pay top dollar but what the going rate is of the car with a branded title

 

[R13]

I am an analyst for a large insurance company...

You need to actually read some of your policy fine print, and make sure your company (not just your agent) knows your car has a salvage title. Having misrepresented an application, even accidentally (your agent forgot to ask the title status maybe?) can result in denied/very painful claims regardless.

It is true this may vary by state as Insurance guidelines are state regulated, but you want to be very, very sure about this considering the potential financial impact of getting nothing/next-to-nothing for a totalled car.

Banks are at more risk than Insurers, because if they loan you the money to buy one, they are already out that money. If they loan you XX,XXX dollars for a car, they want to make sure that if you stop paying, they can sieze the car and recoup approximately XX,XXX dollars, rather than 1/4 of that because it's a salvage car that they can't find a repo buyer for.

I'm just saying, better safe than sorry. If you can't afford to walk away from it empty handed, don't buy it.