Question

Does a salvaged title for a car affect its value?

My daughter just bought a 2008 Dodge Charger with a salvaged title. Can I add full coverage to the car, or does the salvaged title affect the value of the car?

Jun 25, 2018 Baltimore, MD

Answer
Taylor Covington

Jun 25, 2018

Having a salvaged title can be tricky when you are wanting to add coverage for physical damage (comprehensive and collision). Many companies will not insure the car with comprehensive and collision because of the very definition of a salvaged title: the car has been considered a total loss, meaning the damage to the car costs more than what the car was worth. People can take these cars and repair the damage because they can buy the car for a discounted rate and then sell the car for a profit. Unfortunately, this means insurance companies will not cover a car with a salvaged title. The reason for this is because is the repairs are not guaranteed and the car was at one time was not operable. This is not a risk the insurance company wants to take on because in some situations, they would not be able to determine if the damage was pre-existing or not. Also, the type of damage that was previously caused can make the car not as safe to drive meaning there is a higher risk for an accident. With all of that being said, there are still some companies that will insure the car with physical damage coverage, but typically with a surcharge. If you'd like help finding these companies, compare with us: Car Insurance for Dodge Chargers.

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