what are all the reasons?
2007-01-07 13:24:20 · 6 answers · asked by b3nsonx 2 in Cars & Transportation ➔ Insurance & Registration
If a car is damaged to the point it would cost more to fix it than the car is worth, the insurance companies will write them off. To stop people from then getting the cars and doing some minor fix up and selling them at a profit, they are issued a salvage title as a heads up to any subsequent owners. In some states a salvage title means you have a parts car which can not be registered or driven. In others you can get it registered, but only after it has been rebuilt and inspected and found to be road worthy, an expensive thing to do.
If you buy a vehicle with a salvage title, loan companies are reluctant to loan money on them. If you wreck them again, insurance companies will typically pay out less. Unless you need parts, it's a very good idea to avoid vehicles with a salvage title.
2007-01-07 16:14:51 · answer #1 · answered by oklatom 7 · 0⤊ 0⤋
Because if a car was damage then when the insurance company pays out the damage to the owner, if the amount to fix the car is higher then the amount that the car is worth, then the insurance company will buy out the car at the amount it is worth but not the amount it cost to fix it. Then the insurance company will sell it out to a savage yard . Some people will buy back the car at little amounts from the insurance company and fix the car themselves. Because the insurance had bought it out that would make it a salvage title. That way when someone resales the car the other person would know that it had some high damage.
2007-01-07 21:37:49 · answer #2 · answered by Wes D 2 · 0⤊ 0⤋
I don't have all the reasons, but here's a few:
The car was wrecked and the insurance company determined it was a total loss.
The car was damaged in a flood, fire, or other calamity, and it was also determined to be totalled.
The car was taken to a junkyard and parted out.
In all these cases, the cars are no longer operable in the eyes of the law and can't be registered very easily.
2007-01-07 21:29:33 · answer #3 · answered by Me again 6 · 0⤊ 0⤋
Generally it is a vehicle that has been deemed unworthy of driving on a public highway or street or totaled by an insurance company and signed off by insurance company then bought and restored by an individual. Oh yeah it can never have full coverage insurance carried on it again.
2007-01-07 22:55:07 · answer #4 · answered by paul w 1 · 0⤊ 0⤋
The car was written off as a total loss by an insurance company. Flood, fire, or collision are the primary reasons.
2007-01-08 01:17:32 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Flood (or other natural occurances) damage, scrapped by insurance companies who "totalled the vehicle"
2007-01-07 21:27:06 · answer #6 · answered by Joe S 6 · 1⤊ 0⤋