NLIC.org

Vanessa Said:

How much coverage do you get with salvalge title car? And how much does insurance run with salvage title?

We Answered:

Typically an insurance company wont insure a salvage title vehicle, and if they do they will only put liability on it, thats the most coverage you will be able to put on it..

Tommy Said:

is it true that if you buy a car that has a salvage title, insurance will not cover it?

We Answered:

This has been mentioned... I've never heard of a carrier asking to see the title prior to writing the policy. I guess some carriers might run the VIN and then could know the status of the title.

If a carrier writes a salvage vehicle and the vehicle is a total loss, they will typically then discount the value by 25% (if you have 1st party coverage). Keep in mind that your paying a premium based on a non-salvage vehicle so really you're paying a slight bit more for the coverage.

As far as liability is concerned, it's the same for the insurance company so they should not really care if the vehicle has a salvage title.

Jackie Said:

If I get into an accident will the insurance company ask to see my title?

We Answered:

Most lien holders require that you carry full coverage insurance on the vehicle they have financed, and that you name them as loss payee in the case of any loss. If you don't have them listed you may be in violation of the terms of your loan. I'd suggest you find and read the agreement.

If you drop collision you will definitely be in violation of the terms, and the penalty could be your full balance immediately due and payable, or your vehicle repossessed, or the lien holder adding their own, very expensive, insurance to protect their interest, and billing you the costs.

Jacob Said:

If I buy a car with a salvage or refurbished title, what are the chances of an insurance company insuring the?

We Answered:

autoinsurance.undonet.com - try this one. I have their car insurance and, as I know, they can provide such a service.

Jason Said:

How does having a salvaged title affect insurance?

We Answered:

insurance company is not going to pay full coverage on a car that was already totaled, this is just one reason, not to buy a salvage car, the second is they are difficult to sell, since most people are not going to pay a lot of money for something no one will insure, most people do not even take a chance on a salvage title car, I hope you did not buy this car, and lesson learned if you did, listen to your dad he knows what he is talking about

Peggy Said:

Should I avoid a seller's title insurance?

We Answered:

No, you should not avoid Title insurance. A title company thoroughly checks out your property for any Liens. If they happen to miss one, they pay for the Lien. That rarely happens, but it could be quite expensive if it did.

How are you going to thoroughly check out the property for Liens? What if you miss one that a Title company could of easily found?

It sounds as though, the seller is willing to pay for the Title Insurance if you use their choice of Title Insurance. As long as the Title company is licensed, I would not be worried.

There are so many things that could go wrong, and it is not worth saving the couple of hundred dollars that it costs for Title Insurance.