How to Insure a Car With a Salvage Title in Texas

In Texas, insurance companies may often total a car, then turn it over to a scrap dealer with a salvage title when the cost of repairing damage suffered to it exceeds its value before the accident. Because of this, many salvage dealers are able to receive late-model cars with minimal damage and repair them, then sell them with a salvage title. While savvy car buyers might be able to purchase a reliable vehicle with a salvage title, insuring it may be difficult as insurance companies may be hesitant to determine its actual value and its safety rating.

Determine the vehicle’s value by having it appraised by a professional appraiser. Because salvage-title vehicles are typically worth over 40 percent less than standard Kelley Blue Book value, determining your vehicle’s worth is key in helping an insurance company determine its value.

Hire a professional mechanic examine the car’s safety features to determine how roadworthy it is. Many insurers are reluctant to insure a salvage-title vehicle because they don’t have reliable information on how safe it is for passengers as well as other vehicles. Speak with a representative from your insurance company regarding the procedure to determine the vehicle’s safety rating.

Pass the Texas Department of Motor Vehicles vehicle inspection. You’ll need a valid inspection to register your vehicle, and a vehicle that passes inspection is more likely to be viewed favorably by insurance companies.

Document the vehicle’s safety rating, appraised value and inspection report and submit it to your insurance company.