If you’ve explored car buying in Georgia, you’ve probably heard the phrase ‘salvage title.’ A salvage title is generally applied to a vehicle that’s experienced some level of significant damage. While this can make them a potentially risky investment, it also means that salvage title vehicles can sometimes be purchased for much less than the market value of a similar vehicle in better condition, making it an appealing choice for value car buyers.
But what is a salvage title in Georgia going to do to your insurance, and how does it impact your car buying, safety, and driving experiences?
Our car insurance experts here at Freedom National are here to answer all of your most important questions, including:
- What is a salvage title in Georgia?
- How do you get insurance for salvage titles in Georgia?
- How do you rebuild a salvage title vehicle in Georgia?
- What should you expect when owning and driving a salvage title vehicle in Georgia?
Wondering about salvage titles in other states? Check out information on getting insurance for a salvage title in Arizona, and be on the lookout for additional articles from Freedom about salvage titles and other insurance-related questions.
What is a Salvage Title or Salvaged Vehicle?
You’ve probably heard that when a vehicle is damaged so badly that it would cost nearly the same or more to repair the car than it would to replace it with a vehicle of the same market value, your insurance company will consider it a ‘total loss’ and simply pay you the value of the vehicle.
But what happens to those vehicles that are written off as a total loss?
Any vehicle that’s been wrecked must be recorded as disposed of or sold and given a salvage title from the Georgia Department of Driver Services indicating that the vehicle has experienced significant enough damage to be considered a total loss. Basically, that salvage title indicates to you, the state government, and to potential buyers of your vehicle that the vehicle has experienced significant damage and may not be safe to drive.
Still, you may decide to keep the vehicle either due to sentimental reasons or because you have a goal of having it returned to working order so that you can drive it yourself or attempt to sell it. But there are specific criteria you’ll have to meet before your salvage title vehicle can be considered roadworthy again.
Salvage Titles in Georgia
What is a salvage title in Georgia going to require to get you back on the road?
First, it must be rebuilt/repaired by a licensed rebuilder. This means that the mechanic is specifically authorized to perform repairs on salvage title vehicles in order to get them back into working order.
If you’re a mechanic and think you can rebuild the vehicle yourself, you’ll need to get authorization as a licensed rebuilder before proceeding.
From there, you’ll need to have the salvaged vehicle inspected for safety at a state-approved inspection station, which have locations throughout the state of Georgia. You may also be able to have the inspection completed at your home. Considering the vehicle cannot be considered safe to drive until after the inspection, you cannot drive the vehicle to its inspection location. It will have to be towed, which may make having the inspection completed at your home a more attractive option.
You should expect to pay a fee to the inspection station, as well as an inspection fee and title fee to the Georgia Department of Driver Services.
Once your salvage title vehicle has been given a ‘rebuilt’ title, it is legally considered safe to drive.
Insurance and Salvage Titles in Georgia
In order to get insurance for a rebuilt or restored title vehicle in Georgia, you’ll need to meet some additional criteria you wouldn’t need for a standard vehicle’s insurance policy. First, you’ll usually need to provide proof of repairs as well as reports from the inspection of the vehicle.
Meanwhile, you should also be aware that many insurers won’t offer complete coverage for a formerly salvage title vehicle. Usually, you’ll be able to get minimum liability coverage but without collision, comprehensive, or some other coverages depending on the insurer.
You also should know that many insurers won’t pay out a total loss on a vehicle a second time, meaning that if you’re in a major incident and the vehicle is written off as a loss, your insurer may not pay you its market value.
How to Rebuild a Salvage Title Vehicle in Georgia
If you’re looking to rebuild a salvage title in Georgia, here’s what you’ll need to do.
Start by getting photographs of the vehicle in its fully damaged condition. You’ll need these when you apply to have its salvage title rebuilt or restored.
You’ll also need to save any bills of sale for auto parts that are purchased in order to restore the vehicle. These will show that the proper procedures were followed in the vehicle’s repair process.
Next, you’ll apply for a rebuilt title and inspection with the state as mentioned in an earlier section. Be sure to do this after the vehicle has been restored, but before final cosmetic work (paint, etc.) has been completed.
You’ll need to submit relevant fees to the state government. Currently, the title fee is $18 and the inspection fee is $100.
Owning and Driving a Salvage Title Vehicle in Georgia: What to Expect
Even if you’re able to fully restore a salvage vehicle, what is a salvage title in Georgia going to mean for your vehicle’s future?
You should expect that you’ll only be able to sell the vehicle for less than half of its typical value— even if you’ve restored it to full functional and cosmetic condition. Meanwhile, don’t forget that most insurance companies won’t pay off a vehicle that’s totaled twice.
FAQs
Should I buy a car with a salvage title?
Salvage title vehicles can come with the advantage of value for lower car-buying budgets, but they can also come with risks and potential long-term mechanical issues. Many people who look for salvage titles to purchase are skilled mechanics capable of repairing cars on their own at a low personal cost to themselves. That said, the value of a salvage title vehicle can be significantly low, even after proper repairs.
What’s wrong with a salvage title?
While there’s nothing inherently wrong with a salvage title vehicle, usually the cause of a salvage title is a significant event or wear and tear that’s resulted in widespread damage to the frame and vehicle structure or other issues such as rust. You should also consider all of the pros and cons before purchasing a salvage title in Georgia.
Conclusion
Want to learn more about getting cheap car insurance in Georgia or other car-related questions? Check out our blog for dozens of informational posts that will help answer all of your questions and make you a safer, more secure driver.
When you’re ready, head to our free quote page to get cheap car insurance online with Freedom National.
