Salvage insurance policies can seem like another non-essential element that just adds to the cost of owning salvage. However, they’re actually designed to help protect individuals and businesses from the risks associated with purchasing or owning salvage vehicles. 

Heavy-duty salvage vehicles are those that have been damaged in accidents or natural disasters and have been deemed too expensive to repair by insurance companies. While these vehicles can often be purchased at a significant discount, they also come with unique risks and challenges that must be considered when selecting a salvage insurance policy. In this blog, we’ll discuss some key factors to consider when evaluating salvage insurance policies.

What to Look for in Salvage Insurance Policies Coverage

The first thing to look for in a salvage insurance policy is the level of coverage it provides. Some policies may only cover liability while others may offer comprehensive coverage that includes collision, theft, and other types of damage. It’s important to carefully review the policy to ensure that it provides adequate coverage for your needs.

Deductible

Salvage insurance policies typically come with a deductible, which is the amount you will be responsible for paying out of pocket before the insurance company begins to cover any losses. The deductible can vary depending on the policy, and you should consider how much you can afford to pay in the event of a claim when selecting a policy.

Salvage Title Restrictions

Salvage vehicles are typically sold with a salvage title, which indicates the vehicle has been damaged and repaired. Some salvage insurance policies may have restrictions on the types of vehicles they will cover based on the salvage title status, so it is important to check the policy for any such limitations. Many times, insurance companies will require salvage owners to obtain a rebuilt title for their commercial salvage before they are able to draft a policy. 

Inspection Requirements

Salvage insurance companies may require an inspection of the vehicle prior to coverage being granted. The purpose of the inspection is to assess the extent of the damage and ensure that the vehicle is safe to operate. You should check the policy to see if an inspection is required and if so, what the requirements are.

Limits and Exclusions

Salvage insurance policies may have limits on the amount of coverage provided for certain types of damage or may exclude certain types of damage altogether. For example, a policy may exclude coverage for flood damage or may limit coverage for theft. 

Most insurance companies will offer liability coverage for your rebuilt title commercial vehicle, meaning they won’t pay for any physical damage to the vehicle if there’s an accident. Even if you can get collision and comprehensive insurance, your policy may not cover the full value of your heavy-duty salvage if it’s totaled again. 

Keep in mind that insurance policies are typically more expensive for rebuilt titles than clean titles. It is important to carefully review the policy to understand any limits or exclusions that may apply.

Reputation of the Insurer

Finally, you should consider the reputation of the insurer when selecting a salvage insurance company. Look for a company with a strong track record of providing quality coverage and customer service. We recommend contacting each provider directly to ask about their policies on covering heavy-duty salvage. 

As you’re speaking to insurance companies, ask them about their customer reviews and if they can offer any references. You may also want to read reviews and check the insurer's financial strength rating to ensure that they are financially stable and able to pay claims.

In conclusion, selecting a salvage insurance policy requires careful consideration of the level of coverage provided, the deductible, salvage title restrictions, inspection requirements, limits and exclusions, and the reputation of the insurer. By carefully reviewing these factors and selecting a policy that meets your specific needs, you can protect yourself from the unique risks associated with owning a salvage vehicle.

Salvage Insurance | Heavy Salvage

Heavy Salvage offers the industry’s most trusted system of buying and selling commercial salvage. We specialize in connecting verified buyers to certified sellers of wrecked or salvaged semi-trucks, trailers, equipment, or other heavy-duty specialty vehicles with insurance companies and certified sellers. Check out hundreds of certified salvages today.