You cannot get insurance on a salvage title car. However, you can fix your vehicle and apply for a rebuilt title. If approved, you can then get insurance on your rebuilt title car. Unfortunately, you may only be able to get limited coverage on a rebuilt title car.
What Is A Salvage Title Car in Louisiana?
In Louisiana, a car receives a salvage title when it costs 75% or more of the vehicle’s current value to fix its damages. If the insurance company deems your vehicle salvaged, you have a couple of options.
First, either accept a full or partial settlement from your insurance company. Accepting the full settlement means the insurance company will take ownership of the salvaged vehicle and pay you damages.
Your other option is to accept a partial settlement, which involves keeping the salvaged car and receiving any partial damages your insurance company provides. If you take the partial settlement, you can either junk the vehicle, sell it for scrapes, or apply for a salvage title. You have 30 days from the insurance claim settlement to apply for a salvaged title.
How Does a Car Become Salvage?
When most people picture a salvaged or totaled car, they see a recked heap of metal. But not all salvaged vehicles have significant damage, some barely have any at all. There are several reasons a vehicle may receive a salvaged title.
- The car has collision damage.
- The car was in a natural disaster.
- The car was stolen and recovered.
- The car was a heavily used taxi, law enforcement vehicle, or was returned under warranty.
- The car may have aftermarket components.
- The car is a restored classic.
- The car is too old to be worth fixing.
- The car has too many miles on it.
No matter how minor the damage, if it comes out to be 75% or more than the car’s value, your insurance company will want to deem it salvaged. You have to decide if you can afford a new car or if it makes more financial sense to pay to fix the damages yourself.
Does It Cost More to Insure A Rebuilt Title Car?
Insuring a salvaged title car can lead to a higher insurance rate. Salvage cars have higher insurance rates because some insurance companies think rebuilt vehicles are more likely to break or get involved in accidents. If an insurance company accepts rebuilt title cars, they will typically offer auto liability coverage and any other state-required coverage.
However, finding an insurance company willing to provide comprehensive coverage or collision coverage can be more challenging. Insurance companies tend to be hesitant to offer comprehensive and collision coverage to rebuilt title cars because it can be difficult to tell the difference between old and new damage on a vehicle if it were to get into another accident.
Find out what coverage Thomson Smith & Leach Insurance Group can offer you for your rebuilt title car. Get a quote today.
After being in an accident, you may realize that fixing your salvaged car would be more cost-effective than buying a new vehicle. Several old cars on the road could be considered salvaged just because of their age or mileage alone. However, these old cars still run fine.
Between fixing the car and filling out all the necessary paperwork, insuring a car with a salvage title can be time-consuming and difficult. Let our team at Thomson Smith & Leach Insurance Group help you. Our family-owned business has been helping people find car insurance in Lafayette, LA, as well as in Franklin and Abbeville areas for over 50 years. Speak to one of our knowledgeable agents today!