Latest news with #carinsurance
Yahoo
14 hours ago
- Automotive
- Yahoo
Insuring a salvage car is possible. Here's how.
You can buy a salvage car on the cheap, but you may not want to. A car receives a salvage title after an auto insurance company deems the vehicle a total loss. This happens when the expected repairs will cost more than the car is worth. Insuring a salvage car can be a challenge, but it is possible — here's what you need to know about the process. Learn more: How does car insurance work? The basics explained. Can you insure a salvage title car? You can't insure a salvage title vehicle as is. A total loss declaration implies the car has been damaged extensively and may be unsafe to drive. The incidents that can lead to a total loss declaration include serious collisions, extreme weather, fire, or vandalism. These can result in structural, electrical, and safety systems issues. And since the car insurance company chose not to repair the car, the full extent of the damage may still be unknown. Insurance underwriters generally consider unsafe vehicles too risky to insure. State motor vehicle departments also don't want dangerous cars on the road. For these reasons, you must complete repairs and have the car inspected before it can be insured. Learn more: What happens when your car is totaled? How to get salvage title car insurance Ideally, you should begin the process of insuring a salvage title before you buy the vehicle. Each state has different regulations for salvage cars, so it's helpful to know what to expect before you commit to the purchase and the process. After reviewing your state regulations and buying the car, you'll want to get it repaired and inspected prior to securing insurance and an updated title. Follow these steps to insure a salvage vehicle. Step 1: Review the laws in your state Your state sets the rules for titling salvage vehicles. Before you invest in a total-loss car, research your state's requirements for repairs, titling, inspection, and insurance. Learn more: Minimum car insurance requirements in all 50 states Step 2: Buy the car Some states prohibit individuals from buying salvage title cars. If you're not an auto dealer, dismantler, or exporter, you may have to wait until the car is rebuilt to buy it. If you can purchase the car, get a bill of sale that includes the car's year, make, model, and VIN. Learn more: How your vehicle's make and model affect car insurance costs Step 3: Complete the repairs Some states require salvage car rebuilders to be licensed. If you have mechanical expertise, you may be able to obtain a license and complete the repairs yourself. Be sure to document your work with photographs before, during, and after the repairs. Keep the old parts and all receipts. Alternatively, you can find a licensed rebuilder to complete the repairs for you. Step 4: Get an inspection Depending on your state's rules, your DMV inspector may ask to see a bill of sale, repair receipts, and replaced parts. Some DMVs focus on verifying that the car was not stolen and doesn't use stolen parts. Other states may want a detailed report of the repairs made. Note that you can't drive your repaired salvage car to the DMV because it's not yet legally roadworthy. Make arrangements to have it towed or speak to your local DMV about other options available. Learn more: Does car insurance cover theft? Step 5: Secure insurance Some states, like Texas and Florida, may require you to insure the car before you apply for a rebuilt title. Not all insurers offer the right coverage. You may have to present a bill of sale, documentation of repairs, and the state inspection report. Step 6: Apply for a rebuilt title with the DMV You need a rebuilt title to drive the car legally on public roads. Applying for a rebuilt title usually involves forms, fees, and documentation. If your state doesn't require proof of insurance with the application, plan on insuring the car immediately after registration. Where to start: Although not all insurance companies will insure a salvage title, Allstate, GEICO, Farmers, State Farm, Liberty Mutual, 21st Century, National General, Safeco, Nationwide, and Infinity are some options that do. Als Nächstes Als Nächstes How much does it cost to insure a salvage car? Insurance premiums are higher on salvage cars that have been repaired and inspected versus cars with standard titles. The vehicle's condition before and after the repairs may be factors. For example, GEICO will insure rebuilt title vehicles for as low as $55/month, according to Clearsurance. What's the difference between a salvage title and a rebuilt title? Salvage titles are reserved for totaled cars that have not been repaired, inspected, and registered. You can't legally drive a salvage title car on public roads. Rebuilt titles apply to previously damaged vehicles that have been repaired, inspected, and registered. Some states use other names for this title class, such as rebuilt salvage, reconstructed, or restored salvage. You can legally drive and insure a car with a rebuilt title. Expert tip: With standard titles, you have many full coverage plans to consider. But when it comes to a salvage title, it's unlikely you'll have any full coverage options — unless it's repaired and you're able to convert the title from salvage to a rebuilt title car. Insuring salvaged cars FAQs Can I get full coverage on a salvage vehicle? Some insurers may offer full coverage on salvage vehicles at their discretion, but only after the car has been repaired and inspected. Out of all the types of car insurance, liability insurance will be the easiest to find. Uninsured motorist, personal injury protection, and medical payments coverage may also be readily available. However, comprehensive insurance and collision insurance are more difficult to obtain for salvage cars. Learn more: Liability-only vs. full coverage car insurance: Which is better for you? Does it cost more to insure a salvage car? Yes, salvage cars are more expensive to insure. You should budget more for insurance on your salvage car than what you'd pay for a vehicle with a standard title. Do I have to disclose a salvage title to my insurance company? Yes, you must disclose a salvage title to your insurance company. Your insurance provider can easily research the vehicle history and its title status. Withholding the information could result in your insurance policy getting canceled or your insurance claim getting denied. Learn more: How to file a car insurance claim Why is salvage insurance so high? Salvage insurance is expensive because these cars may have many lingering and unknown issues after being rebuilt. Any problems with structural parts, electronic components, or safety systems could raise the likelihood of another accident or increase the cost of repairs later on. Learn more: How much does car insurance increase after an accident? Jamie Young and Tim Manni edited this article.
Forbes
a day ago
- Automotive
- Forbes
Does Your Car Insurance Cover Flood Damage? What You Need To Know Before The Next Storm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Flooding can wreck your car in minutes, and if you're not prepared, it might wreck your wallet just as fast. As extreme weather becomes more common across the U.S., more drivers are asking an important question: If my car gets caught in a flood, will my insurance cover it? The answer depends on the kind of coverage you have. And if you only have basic liability coverage, you likely won't have protection against flood damage. Does Your Car Insurance Cover Flood Damage? In July, heavy rains led to severe flooding across parts of New York and New Jersey. Flooded streets and subway stations caused major disruptions throughout the region. If rising waters damaged your car, it could have suffered serious damage, from engine and electrical issues to soaked interiors. Unfortunately, regarding flood damage, not all car insurance policies offer equal protection. If you want protection against floods, you need comprehensive coverage. This type of insurance typically covers fire, theft, vandalism and flooding. It's usually optional but included in many full coverage plans. Liability insurance, which most states require, won't cover damage to your vehicle. It only pays for damage or injuries you cause to others. Collision coverage won't help either, as it only applies if you crash into another car or object. So, if rising waters catch you off guard, comprehensive coverage is what you'll want to have on your side. What's Covered Under Comprehensive Coverage? If you have comprehensive coverage, your insurance may cover: water damage to the engine or electrical systems ruined upholstery or interior mold or mildew caused by flooding repairs—or even a complete replacement if the car is totaled What's not covered? Your belongings inside the car. If a flood soaks your laptop or new handbag, this would fall under your renters' insurance or homeowners' insurance policy, if you have one. What To Do If Your Car Gets Flooded If a flood damages your car, here's what to do: Don't try to start the vehicle. Turning on a flood-damaged car can worsen the damage. Take photos. Document the damage from every angle. Call your insurance company. File a claim as soon as possible. Wait for the adjuster. A claims representative will inspect the damage and help you figure out the next steps. Depending on the extent of the flooding, your insurer will decide if the car is repairable or should be declared a total loss. Is It Worth Adding Flood Coverage? Adding comprehensive coverage is a smart move if you live in an area where storms, hurricanes or flash floods are common. It's not free, but it's usually affordable, often around $100 to $300 extra per year, depending on your car and where you live. Here's something many drivers don't realize: You usually can't wait until the last minute to add flood coverage. Once a storm is named or on the radar, most insurance companies pause new policies or changes. If you're considering adding comprehensive coverage, don't wait for the clouds—get it sorted before the forecast turns. Here are some of Forbes Advisor's picks of the best car insurance policies to choose from. Bottom Line Floods aren't just a coastal problem—they can hit almost anywhere, and your car is often one of the first things at risk. If you're unsure what your insurance covers, now's the time to look. Once the water starts rising, it's too late to make changes.
Daily Mail
2 days ago
- Automotive
- Daily Mail
Car insurance price rises 'out of firms' control' says City watchdog
Soaring car insurance premiums are 'outside of firms' control' rather than being driven by insurer profits, the City regulator has said. The Financial Conduct Authority found that the cost of motor claims has been primarily driven by higher prices for cars, parts, labour and energy. The cost of hire vehicles, and the number and cost of theft claims, and uninsured drivers have also contributed to the rise. The average cost of car insurance premiums dropped 7 per cent in the first three months of 2025 compared to a year earlier, from £635 to £539, according to figures from the Association of British Insurers. However, premiums remain higher than two years ago when the average annual policy cost was £478. The FCA found that referral fees from credit hire firms and claims management companies had also pushed prices higher and contributed to slower processing. While the Government's motor taskforce, launched in 2024 to tackle the rising cost of car insurance, may help drive down premiums, the regulator said it would not prevent these kind of cost increases. The FCA also said that insurers across all sectors still needed to handle claims more efficiently. It said it had 'uncovered evidence of poor claims handling practices', particularly in the home and travel sector. This included just under a third of storm damage claims resulting in a payment, and what the FCA describes as 'insufficient management information'. Sarah Pritchard, deputy chief executive of the FCA said: 'Insurance provides peace of mind but people must be confident they can get a fair deal and be treated right when the worst happens.' Pay monthly insurance customers paying more Around 48 per cent of motor and home insurance was paid monthly in 2023, but customers could be paying higher premiums. The FCA report found that some firms that allow customers to spread costs and pay monthly rather than yearly were earning more money than the cost of providing the cover. Analysis found that the margins on these so-called 'premium finance' arrangements ranged between 14 and 62 per cent across insurers, intermediary lenders, intermediary brokers and specialist premium finance providers between 2018 and 2023. The regulator requires insurance premiums charged to customers using premium finance to be at the same level as those paying yearly, unless there is an objective and reasonable basis for the change. Some insurers say that the choice of payment method is correlated with the risk for those paying monthly. The FCA said: 'Where firms charge for premium finance, revenues appear to materially exceed costs for some providers. 'Whereas the profit margin earned on a core insurance policy may be relatively low, we see margins on premium finance that are somewhat higher. 'Different business models will have different ways of recovering costs. 'In some cases, they recover all costs through the insurance product itself, or recoup returns on lower margin insurance product through higher APRs [annual percentage rates].' As yet, the FCA will not introduce a cap or any other measures to encourage insurers to equalise premiums. Hannah Gurga, director general of the ABI said: 'Having the option to pay for insurance in monthly instalments can provide flexibility for those who need to manage their budgets. 'Offering this service does involve costs for insurers, and firms also have to keep cover in place for a period of time if a payment is delayed or missed. 'Our Premium Finance Principles, which we published last year, outline that any charges should be fair, transparent and reflective of the costs that the insurer faces. 'We'll continue to work with our members on this matter and engage with the FCA's review.'
Forbes
3 days ago
- Automotive
- Forbes
Collectible Car Insurer Hagerty Eyes Off Australian Expansion
McKeel Hagerty is considering taking the listed Hagerty collectable car insurance success story to ... More Australia. Photo: Steve Jessmore Photography. The Shannons stranglehold on the Australian insurance market for rare, expensive and collectible cars could be nearing an end, with America's Hagerty Insurance eying up the Australasian market. Speaking during the Concorso d'Eleganza on Lake Como, Hagerty CEO McKeel Hagerty admitted his company had been approached to enter the market there. 'There are a significant number of people who want us to enter Australia,' Hagerty admitted. 'Those requests have come from other insurance companies and the only problem is the resource it would take us to do. 'But Australia would be a place we eventually get to, I think.' Any move into the Australian market would tread directly on the toes of Shannons Insurance business, with both companies specializing in the car-enthusiast and collector business, rather than mainstream car insurance. It's a niche, with cars often appreciating in value, with spare parts sometimes incredibly difficult or impossible to source and with valuers needing an encyclopedic knowledge of one-off cars from even a century ago. Incumbent Australian collectable car insurance firm Shannons is a long-term supporter of both niche ... More and mainstream Australian motorsport, including the Bathurst 1000. Photo:Traditional insurance companies prefer business models they're more familiar with, and often approach companies like Hagerty and Shannons to handle collectible cars for their clients, Hagerty said. 'The big insurance companies think of themselves as department stores and have to sell everything, but we are a boutique and not a department store,' Hagerty said. 'Nine out of the 10 biggest insurance companies in the US partner with us. They are the fiercest competitors and they all have agreements with us. 'The simple reason is that 2% to 3% of their general policies would include a car that we would be interested in, and they don't know what to do with it. 'The whole model of insurance is to handle depreciating assets and we only deal with appreciating assets, so we take a problem away from them and they can keep insuring the cars and houses and buildings they know how to do.' Hagerty Insurance does the opposite of most car insurers by mainly insuring appreciating assets. ... More Photo: Hagerty Insurance Hagerty has been making other moves, too, including poaching AT&T marketing wizard Marc Burns for its newly created Senior Vice-President of Brand and Marketing role, and it has a strong track record of beating financial forecasts. Unlike Shannons, Hagerty runs a growing auctions business, with the Broad Arrow auction house selling more than €31 million in sales, with a 78% clearance rate, at its recent Concorso d'Eleganza sale. Shannons ran Australia's most interesting car auctions for more than 40 years, but shuttered its Brisbane, Sydney and Melbourne showrooms in 2023 after being absorbed by Suncorp. Shannons, founded by Bob Shannon more than 40 years ago, was absorbed by its long-term corporate partner, Royal & Sun Alliance Insurance Limited, in 2000, and has more recently fallen under the Suncorp umbrella. A long-time favorite of the Australian collectible-car scene, Shannons also supports more than 1,200 car and motorcycle events a year in Australia, and runs the Shannons Club, which it claims is Australia's largest online motoring enthusiast community. Hagerty does similar things largely in the USA, the UK and Canada, ranging from the highest of the high end events at Concorso d'Eleganza at the Hotel Villa d'Este on Lake Como and the Pebble Beach Concours d'Elegance, to Radwood, Cars and Caffeine and the British Festival of the Unexceptional. Its Drivers Club magazine is one of the biggest-circulation car magazines in the world.
Telegraph
3 days ago
- Automotive
- Telegraph
Mrs, Miss or Ms? The tiny tweaks that could make your car insurance cheaper
When you're looking for a car insurance policy, you might think that the price only depends on what kind of car you have and how much you drive it. While both of those factors have a bearing on the policy prices you're quoted, the truth is that insurance companies take in the minutiae of all of your personal details when weighing up your level of risk – and, therefore, how much you're charged to cover it. There are some things you can't do anything about, such as your age. However, there are some tweaks you can make that can bring down your policy cost. The key when weighing up whether to change certain details is that they must still be true. If any of the information you provide is inaccurate, or you have lied in any way, you won't be covered if you make a claim. James Daley, MD at consumer group, Fairer Finance, also warned: 'There are lots of little ways you can bring down your car insurance premium – but you need to be careful experimenting with your answers on comparison sites, as you'll quickly get flagged as a fraud risk.' Here, Telegraph Money explains some of the tweaks you can make when searching for car insurance to reduce the cost – from altering your job title to adjusting your mileage. Consider your title Rethink your profession Think about where you park Alter your annual mileage Renew at the right time Consider your title The title used before your name can affect your car insurance quote. Data obtained by Which? shows that drivers using the title 'Mr' faced the highest average premium at £1,695, compared with £1,331 for 'Miss', £863 for 'Mrs' and £720 for 'Ms'. Insurers can no longer use a customer's gender to set prices. However, titles can indirectly reflect underlying risk factors, such as age and driving experience. Switching from 'Miss' to 'Ms', for example, may be worth checking when searching for a new quote – but this change alone is unlikely to result in a cheaper deal. Rethink your profession Insurers rely on claims data to assess which occupations are more likely to make a claim. If your job falls into a higher-risk category, you'll typically pay more for your car insurance. Analysis by Quotezone shows that healthcare assistants and warehouse workers face some of the highest premiums, at more than £1,000 a year. By comparison, nurses (£668.23), administration assistants (£663.49) and HGV drivers (£556.31) enjoy the cheapest premiums. You don't need to go through a career change if your occupation is at the higher end of the scale – instead, it's worth exploring whether you could describe your job in a different way when you're reviewing quotes, according to Greg Wilson, from Quotezone. This is a legitimate option if the alternative description still accurately explains what you do. 'As long as the description remains accurate and honest, variations in an individual's job title could help bring the cost down,' said Mr Wilson. For example, instead of describing yourself as a 'healthcare assistant', try changing it to 'care assistant' or 'care worker' to see if it lowers the cost. Similarly, if you're retired it can be cheaper to make sure you're described as such, rather than 'unemployed'. Think about where you park According to the RAC, wherever you describe as your overnight parking location at the time of applying for an insurance quote, or renewal, will be assumed as where your car is parked the majority of the time. Policy costs tend to reduce the more secure the parking location is – but, of course, it needs to reflect where your car is genuinely parked most of the time. RAC says that for insurance purposes, a 'driveway' can include asphalt, concrete, gravel or grass anywhere outdoors – but somewhere on your property. On-road parking describes a vehicle being parked at the side of the road near where you live, but not necessarily directly outside your property. To describe your car as being parked in a locked garage, this must be an enclosure on your property that is actually locked and requires a key to open it. It may sound obvious, but it's important to make sure the description is accurate – if you make a claim and your car is not parked where you described it, your claim could be invalidated. Alter your annual mileage If you've over-estimated the amount of driving you're going to be doing over the next year, you could be landing yourself with a needlessly expensive policy. This is down to the theory that driving fewer miles can reduce your risk of an accident, which is why lower mileage often leads to cheaper car insurance. But it's not always that simple. Research from Compare the Market found that the cheapest average premiums were for drivers covering between 11,000 and 11,999 miles a year, at £511. By comparison, more occasional drivers covering 10,000 to 10,999 miles paid more on average, at around £645. For this reason, it's worth testing a few realistic mileage brackets when comparing quotes. Just remember that your final figure must still be accurate. Exceeding the amount you've specified can invalidate your cover, and your insurer won't pay out in the event of a claim. Renew at the right time
