Most personal insurance carriers will not allow a vehicle previously deemed totaled or with a salvaged title to be insured for full coverage. At times it can be hard to insure a vehicle with a salvaged title for liability only coverage, depending on the carrier. The underwriter may view the vehicle as potentially unsafe as there would be no way to verify the integrity of the vehicle at that point and would decline to write coverage.
If you are faced with a client that has kept their beloved car/truck after it being deemed totaled and is looking for full coverage; Have No Fear! Safeco will write full coverage or liability only on the vehicle unendorsed without any problems or needing additional underwriting review.
It will be important to advise the insured that though Safeco can offer full coverage on a salvaged vehicle for new business and renewals, the payout factors due to the previous condition and value will most likely be below a comparable vehicle’s worth that has never had damage.
Here is a short list of carriers available through VIAA outlining their underwriting guidelines specifically stating how they feel on salvage titled vehicles:
- Allied – completely ineligible
- Allstate – Liability only
- Foremost – completely ineligible unless vehicle has been rebuilt and has a certification from the State Department of Motor Vehicles deeming it road worthy
- National General – Liability only
- MetLife – prior underwriting approval required
- Titan/Victoria – Liability only
- Travelers – Completely ineligible
Any carriers not on this list, please consult your underwriter for their specific guidelines or review.