If you’re looking to insure a car with a salvage title, start by repairing the vehicle and applying for a rebuilt title. Once approved, your car becomes eligible for insurance. While coverage options might be limited, securing insurance for a rebuilt title car is possible.
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 for the damages.
Your other option is to accept a partial settlement, which involves keeping the salvaged car and receiving the partial damages your insurance company provides. If you take this option, you can either junk the vehicle, sell it for scrap, or apply for a salvage title. You have 30 days from the insurance claim settlement to apply for the salvage title.
How Does a Car Become Salvage?
When most people picture a salvaged or totaled car, they see a wrecked 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 salvage 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 or law enforcement vehicle.
- 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 repair costs come out to 75% or more of the car’s value, your insurance company will likely deem it salvaged.
See also: Understanding Salvage, Rebuilt, and Clean Car Titles
Does It Cost More to Insure A Rebuilt Title Car?
Insuring a car with a rebuilt title can lead to a higher insurance rate. Salvage cars tend to have higher rates because many insurance companies believe rebuilt vehicles are more likely to break down. If an insurance company accepts rebuilt title cars, they will typically offer 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 are often hesitant to offer comprehensive or collision coverage for rebuilt title cars because it can be difficult to tell the difference between old and new damage if the vehicle gets into another accident.
Find out what coverage TSL Insurance Group can offer for your rebuilt title car. Get a quote today.
See also: How Does Car Insurance Work When You Get into An Accident?
Between fixing the car and filling out all the necessary paperwork, insuring a car with a salvage title can be time-consuming and challenging. Let our team at TSL Insurance Group help you. We’ve been helping people find car insurance in Lafayette, LA, as well as in the Franklin, Abbeville, Baton Rouge, and Lutcher, LA, areas for over 50 years. Speak to one of our knowledgeable agents today!
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