Can My Car Be Titled Salvage If Insurance Deems?
Salvage Cars June 29th, 2009The exact process of deeming a car to be salvage differs from state to state as well as on the insurance company involved. In most cases, a car is titled salvage when it has sustained over 75% of its value in damages. Whatever the worth of your car may be in its current condition, if the damages it suffers are likely to cost more than 75% of its value in repair, the insurance company may call it salvage.
For instance, let us say that you drive a 2003 Honda City which is worth $1000 in its current condition. If there was a collision in which your car was involved and it suffered damages that would cost over $750 in repairs, then it is very likely to be titled salvage by the insurance company.
In some cases, where certain legalities are involved, a car may be considered salvage even if its damage is not worth over 75% of its value in repair. Also, in about 11 states, even stolen vehicles are titled salvaged. This is because the insurance company has paid the car owner for the theft and has written off that amount. If and when the car is apprehended, it gets the title of salvage car.
It is also important to remember that the rules and regulations that determine the titling of the car as salvage differ from state to state. For instance, in Florida, a car can be titled salvage only if it suffers over 80% of its current value in damages. On the other hand, a car can be titled salvage in Minnesota only if it was worth over $5000 before the damages took place. Also, a car cannot be titled salvage in Minnesota of it is older than 6 years.
Arizona on the other hand declares: Needless to say, there is risk involved in buying a restored salvage vehicle. While many of the parts may be new, there will be some that are not, and even trained mechanics cannot always gauge the life expectancy of a vehicle. Further, the vehicle will be difficult to resell if you ever choose to, and very few, if any, dealers will take it as a trade-in.”
A car is mainly considered salvage if it is seen unfit to be driven. The titles of junk cars may also be applied to salvaged cars. Many buyers prefer to buy a salvage car and rebuild it to save on the high costs of buying a new car. The only requirement in this case is that the buyer needs to have cash. He would be able to buy a salvage car at the fraction of the cost, but the bulk of the money will be used up in rebuilding the car. Once the car has passed inspection, it can be registered. So, a buyer can get a car with most brand new parts at a fraction of the cost of buying a new car from the dealership.
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