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Insurance companies usually sell vehicles that are considered total losses at salvage auctions. An individual can purchase vehicles with the damaged condition at prices lower than the regular retail prices for the same make and model vehicles. Although this sounds interesting, you should repair the vehicle and insure it to meet your state’s standards to drive it legally.


Before buying Chicago car insurance for your salvaged car, you should repair it first. Once the insurance provider declared the car as a total loss, it is not considered a vehicle anymore, but rather a bunch of car parts. For your state to recognize it a vehicle again, you need to do necessary safety and structural repairs and ask your state’s Department of Motor Vehicles, police or other governmental agency to check and verify if it meets the state’s standards for road safety. After your car passed the inspection process, it is now time for you to look for the best insurance company. 

Availability of Coverage

Not every insurance provider offers coverage on automobiles with salvage titles. Hence, you only have a limited option of insurance companies from which to choose. Inform your insurance broker that your car has a salvage title. This will help you prevent any potential problems with future claims and underwriting. If your regular insurance provider turns down, don’t stop looking another provider. Some insurers may only offer liability coverage on salvaged vehicles. Thus, if you want collision or comprehensive coverage you may need to check with several insurance providers first.

Agent Inspection

The agent/broker for insurance provider that concurs to issue coverage for your salvage car may need to check the vehicle before he or she submits that insurance application. The insurer wants to confirm that your vehicle is in good condition and may require pictures to prove it.  Also, you may be required to submit an invoice that details the repair work you have done to your car, as well as any reports or certification of state inspection you received after the repairs. Make sure you provide everything the insurance broker requests to reduce potential problems of getting coverage.  


Typically, the coverage rate for salvaged vehicles is the same as insuring a car without a salvage title. This is due to the fact that insurance rates are often based on the current market value of a particular vehicle. Your car usually has a lesser resale price with a salvage vehicle, but the insurance provider cannot exactly determine what the value is. Thus, it simply charges you the regular price for normal cars of its year, make and model. Nevertheless, you will only obtain the car’s actual, decreased value if you file a claim.  

If you want to know more information about buying auto insurance for a vehicle with a salvage title, give Thornton Powell a call at 708-597-2800. We can help you understand how your policy works as well as make it affordable for you.

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