Insurance For An Auto Purchased At Salvage Auctions

 Purchasing insurance for autos bought at salvage auctions is strongly recommended. Auto insurance requirements for salvaged vehicles are not different for vehicles purchased from a new, or used, car dealer. State laws dictate the requirements for the amount of coverage a driver is required to maintain for a vehicle that they own and drive.

Salvaged Vehicles
Salvaged vehicles include those that have been reposed, surrender due to a tax levy or abandoned by their owner. In many cases, these vehicles can be obtained for a good price and have little to nothing wrong with them. Acquiring insurance should not be difficult provided the vehicle is in good working condition and does not present a safety concern for the insurance company.

Obtain a Vehicle Inspection Report
When purchasing insurance, you should submit the vehicle for a full vehicle inspection. A reputable salvage yard or auction house would have had an emissions test performed to meet the requirements of most localities but you should double check to make sure the vehicle can be registered and licensed.

Have a Mechanic Check the Vehicle
Having a qualified auto mechanic check the engine, body and frame and drive shaft to make sure that there are no undisclosed repair items that would subject the vehicle to a state’s lemon laws. A full inspection will help you verify to the insurance company that the vehicle is certified and may help you obtain a better auto insurance rate.
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