How to Insure a Car with a Salvage Title in Texas?

Cars with salvage titles have been declared a total loss and can’t be driven on public roads, so you can’t purchase insurance for one. However, once a salvage car has been refurbished and tested it can qualify for a rebuilt title — meaning it can be registered, driven and sold.


The answer is an emphatic “Yes!” Wherever you may be in the United States, the law sets down minimum rules and regulations regarding car insurance. Of course, these rules may vary depending on the State but the fact remains that driving without car insurance is considered illegal. The point of contention would be the amount of liability minimums, which are set by the State. Driving without car insurance does not mean that if you were caught you would be sent to prison. You will probably be fined a reasonable amount yet in some States, the fine can reach up to a hundred to a hundred and fifty dollars. That should not be a reason to drive without car insurance, though.

In Texas, insurance companies may often total a car, then turn it over to a scrap dealer with a salvage title when the cost of repairing damage suffered to it exceeds its value before the accident. Because of this, many salvage dealers are able to receive late-model cars with minimal damage and repair them, then sell them with a salvage title. While savvy car buyers might be able to purchase a reliable vehicle with a salvage title, insuring it may be difficult as insurance companies may be hesitant to determine its actual value and its safety rating.

There is also what is called the no-fault policy. This is practiced by a total of 12 States. It means that there is a limitation as to how a driver can sue another in case of an accident. A pure no-fault State would mean that no lawsuit can be carried out as the insurance would cover everything, no matter whose fault it is. However, in reality, there is no pure no-fault State.

You may or may not deem it necessary to take out insurance before taking your car out on the road. However, the law requires that you do so – and for good reason. You may be the most careful driver in the world and you may never have had an accident your whole life. When that one mistake – on your part or the other driver’s part – occurs, you will be grateful that you have that insurance.

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