Your Car’s Title May Cost You Money

[bartimus]

Do you own a salvaged or rebuilt automobile? If so, is that automobile insured? If so, does your automobile insurance provider know the vehicle is salvaged or rebuilt?

If they do not know, your insurance will not cover the full replacement cost of the vehicle if it has been totaled in an accident. This situation is termed “diminished value” and refers to vehicles that have been rebuilt or salvaged due to an accident. These vehicles have diminished value because when compared to like vehicles that have not been in any form of accident, the market will pay less for them.

Most people would never know that a vehicle had been rebuilt after an accident. Mechanics and auto re builders are so skilled at what they do, the naked eye of most consumers would never know that a vehicle had been rebuilt. However, the title gives it away. Unfortunately, many people never see the title until after the vehicle has been bought.

So, when you insure a salvaged vehicle, make sure your insurance quote includes the rebuilt information so you do not find out the hard way. Insurance companies will only pay out about half the estimated replacement cost of a salvaged vehicle which can add up to thousands of dollars.

[DdfrtKhyu]

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