No, you cannot insure a car with a salvage title in New Mexico. Salvage vehicles are cars that have been declared a total loss, meaning they’re too damaged to be worth repairing and cannot be driven legally. As a result, no legitimate car insurance company writes policies for them.
Although insurance companies in New Mexico won’t insure a car with a current salvage title, you can get coverage if you have the vehicle repaired and inspected by a state-certified mechanic. If it’s declared safe to drive, the DMV will issue the car a reconstructed/rebuilt title. Several insurance companies, including Allstate and Geico, sell policies to vehicles with a reconstructed/rebuilt title.
Keep in mind that some insurers will only sell liability insurance for reconstructed/rebuilt cars, meaning that they won’t pay for any physical damage to the vehicle. Even if you are able to get collision and comprehensive insurance, your policy may not cover the full value of the car if it’s totaled again.
Yes, an insurance company can force you to total your car because state laws regulate when cars need to be totaled. Your only option is to negotiate with your insurer about the car’s value, as convincing the insurer to adjust the value might affect whether the car has to be totaled according to state law.… read full answer
When an Insurance Company Can Total Your Car
Cars are totaled when the cost of repairs exceeds either the vehicle's pre-crash value or a specific total loss threshold established by the state. For instance, in New York, a car is considered totaled if the cost of repairs is more than 75% of the vehicle’s actual cash value (ACV). Total loss threshold laws account for the fact that damage is often more extensive than it first appears.
It’s also important to note that the ACV is not the price you paid for the car. Instead, the ACV is an approximation of the car’s worth just before it was damaged, so it factors in things like depreciation and mileage.
What You Can Do If Your Insurance Company Wants to Total Your Car
Even if you don’t want your insurer to total your car, you can’t argue with your state’s total loss threshold or ask the insurer to use a different system. However, you can argue that your car was worth more than the ACV chosen by the insurer.
Just bear in mind that you cannot simply choose an estimate based on your own opinion. Instead, you need to provide justification for your estimate of the car’s value, such as an independent appraisal, photographs of upgrades or modifications you made to the car, and/or the prices of comparable vehicles for sale in the area.
If the insurer does not agree with your statements regarding the car’s ACV, you can reach out to your state’s insurance regulator for help. You can also seek arbitration or litigation, though legal fees are likely to decrease or even negate any monetary gains that you make.
When your car is a total loss, it means the cost to repair the car exceeds the value of the car. If your car is declared a total loss your insurer may replace your totaled car with an equivalent one or issue payment for the actual cash value of the totaled vehicle.… read full answer
Once you file a claim, the insurance company will determine whether the car is a total loss. Depending on your state’s laws, your car may be totaled if the cost of repairs exceeds a certain percentage of the car’s value, such as 75%. If your state does not have a specific total loss threshold, your vehicle will be considered a total loss if the cost of repairs plus the salvage value is greater than the car’s actual cash value (ACV).
You can get insurance on a car with a salvage title after the car is repaired, inspected and issued a rebuilt title. At that point, you will be able to get liability insurance with the rebuilt salvage car, though some insurance companies will be hesitant to provide full coverage for the vehicle. Even after repairs, insurance companies are still hesitant to cover a car for its full market value if it was given a salvage title. Some companies refuse to insure such vehicles at all.… read full answer
How to get insurance on a car after a salvage title
Get the car repaired and inspected.
Surrender your salvage title to the DMV and have it replaced with a rebuilt title.
Get the original repair estimate from when your car was totaled.
Get a certified mechanic’s statement verifying its safety, and photos from before and after repairs in order to get insurance quotes.
Shop around for coverage and get quotes from multiple insurers before purchasing a policy. Major insurance companies that cover repaired vehicles include Progressive and The Hartford.
Insurance companies that will insure cars after a salvage title
Finally, it's important to note that the amount of insurance you can get for a salvaged car varies from company to company. Often, insurance companies are willing to provide liability coverage - insurance that covers any damage that you cause with your car. Some companies also offer collision coverage for salvaged cars, though they might not cover the full value of the vehicle.
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