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Insuring a Salvage Title Vehicle in Michigan

Insuring a salvage title vehicle in Michigan can get complicated. Insurance carriers have a lot to consider when choosing to provide coverage on salvaged vehicles. In order for a vehicle in Michigan to be considered salvaged, the damage must be between 75% and 91%. Getting liability coverage only is not very difficult because in the state of Michigan, an inspection is required in order to get a license plate.

So when does it get complicated?

Insurance companies really do not like to insure salvage title vehicles with comprehensive and collision coverage. Insuring a salvage title vehicle with physical damage can lead to problems later down the line. For instance, even with all the inspections, prior damage can be discovered after a salvaged vehicle is in another accident. And it may be hard to tell what is prior damage and what is current damage. Getting to the point, an insurance company does not want to be responsible for prior damage it any vehicle.

How to get physical damage coverage on a salvage title.

First you must find an insurance company willing to insure a vehicle with a salvage title. Many carriers will provide coverage once their conditions are met. Ask your insurance agent what conditions you need to meet in order to get coverage.

Typical Insurance Requirements

  • Detailed inspection from a mechanic
  • Visual inspection by an insurance agent
  • Multiple photos of vehicle

Be careful purchasing a salvage title vehicle. Make sure the vehicle is structurally sound and no damage has occurred to the frame. Most importantly you want to be safe. Purchasing a vehicle with a salvage title may seem like a good way to save some cash, but if you struggle to get insurance it may not be worth the hassle. Check with your insurance carrier before purchasing a salvage title vehicle.

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