A salvage title is a title issued by the state for severely damaged vehicles. The damages of these vehicles are said to be so severe that the cost of their repairs are more than the actual cost of the vehicle. They are given for individuals who are Insurance companies usually give these cars a tag of “Total loss”. These titles have severe effects on both the claims as well as the terms and conditions that insurance companies will cater to their customer’s needs.
The effects of having a salvage title attached to your vehicles
There are different effects of having a salvage title attached to their vehicle. The reason of its different effects lies with the fact that the different states have different takes at how they look at salvage titles. One thing is for sure though it is almost always has a negative effect. When a car already has a salvage tag attached to it, the value of the car greatly decreases.
It is only natural that the value of the car decreases. Since the car has incurred severe damage then we can assume that repairs will have been done to the vehicle. This does not remove the doubt that these cars might have something else that need to be repaired. There are too many doubts about the use, safety and the overall state of the car especially in the structural and mechanical aspects of the car.
As far as insurance is concerned a salvage title also greatly decreases the amount that a company will be willing to pay. It might even decrease a couple thousand dollars of the agreement. It will also be more difficult, or at least more expensive, to insure a salvaged vehicle since it poses a greater risk for their profit.
What could you do to protect yourself?
It’s everyone’s choice to choose to buy a salvaged car or not, that is, as long as they know beforehand that it is. After all it’s a lot cheaper than brand new ones but for those who want to protect themselves from salvage titled cars. The only thing you could actually do is to know the car history. People can do this by using vehicle check service. Look at the car service details and make sure that you are satisfied. This is probably the best way you could protect yourself from possible “lemon” cars