Will I pay extra for salvage title insurance?

Yes, but that’s in part because there aren’t that many companies that offer this coverage. With less competition the rates can be higher.

It also depends on the company you choose. “Some companies that are willing to insure rebuilt title cars are non-standard carriers, those who are willing to insure high-risk drivers, etc., Companies that serve high-risk drivers and are willing to insure rebuilt vehicles generally have fees much higher compared to companies that insure safe or standard risk drivers and vehicles, such as a car with a clean title and a driver with a clean driving record, “says Gusner. Since non-standard companies take more risks, their rates are generally slightly higher than other companies.

“However, a liability-only policy may not come with that large premium, so if someone is interested in insuring a car with a rebuilt title, it’s worth comparing purchases.” First, see if you can get the coverage you want, and then secondly, compare the rates for the rebuilt car with what it would cost to insure a vehicle with a clean title, ”says Gusner.

Keep in mind that auto insurance policies are written based on the year, make and model of the vehicle, among other factors. The diminished value of the vehicle is generally not taken into account, Suarez says.

So if you buy a salvage 2012 Toyota Camry, you will pay the same amount for your auto insurance as someone who owns an undamaged 2012 Toyota Camry.

Also, some companies charge you extra for insurance, even though your vehicle is worth less than comparable cars.

Mercury is preparing to implement a 20% surcharge on those vehicles, Suárez says. “It caught our attention because we have seen a trend in our competitors to charge more for these vehicles.”

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