If you’re in the world of buying cars, you’ve likely come across the term “salvage title” at least once. But what does it actually mean for your car insurance? A salvage title is typically given to a vehicle that has undergone significant damage or has been declared a total loss by the insurance company. This can happen for a variety of reasons, including collision accidents or natural disasters.
But how exactly does having a salvage title affect your car insurance rates? The answer is: it varies. While some insurance companies may choose not to insure a vehicle with a salvage title at all, others will still offer coverage but at a much higher rate. The reasoning behind this is simple: since a car with a salvage title has already undergone significant damage, there’s a higher likelihood of future issues with the vehicle. This means that an insurance company assumes a greater risk by insuring it, hence the higher rates.