What is a Salvage Title in Car Insurance?
<lingo>When you're shopping for a used car, you may come across one with a salvage title. When a car has a salvage title, it means that at some point, the vehicle was damaged (likely in an auto accident) to the point that the insurance company considered it a total loss. Rather than paying to repair the vehicle, it was totaled; if you're seeing the vehicle for sale, it was likely purchased by an auto dealership or mechanic and repaired in order to be resold.</lingo>
Salvage Titles Clearly and Briefly Explained
Often times, you can find a salvage vehicle for significantly less money than you would pay for a vehicle without a salvage title. However, it is important to understand that these vehicles were at one point extensively damaged to the point that the insurance company did not consider it worth it for the vehicle to be repaired.
<twitter>If you're thinking of purchasing a vehicle with a salvage title, it is important that you have a thorough inspection done by a mechanic before buying.</twitter>
Cars with salvage titles will inherently have a lower resale value, and because of the extent of the repairs that had to be done before selling, may also be more prone to mechanical problems down the road. If you're thinking of purchasing a vehicle with a salvage title, it is important that you have a thorough inspection done by a mechanic before buying and that you ask for a vehicle history report, including documentation on the original repair estimate from the insurance company. This way, you will have a better idea of what happened to the vehicle and what types of repairs were done.
If you are ever involved in an auto accident that results in extensive vehicle damage, there is a good chance your car will be totaled and receive a salvage title by your insurance company. When this happens, you should be issued payment for the value of your vehicle at the time of the accident so that you can replace your vehicle rather than having it repaired.