Can I insure a salvage car?

One of the major questions many people have when purchasing a salvage car is whether it can be insured. All cars driven on the road in the UK must legally be insured, including salvage cars, so insurance is an important concern.

However, because they tend to be viewed as older and less reliable, buyers may find that they don’t have as many options when it comes to insurance as they do with other cars. Let's take a closer look at what salvage cars are and what to look out for when insuring one below.

What is a salvage car?

A salvage car is a vehicle that has been judged as better than scrap. Salvage cars tend to be newer than scrap cars and usually have a major mechanical fault such as total engine failure, ECU fault or gearbox failure.

Salvage cars come in a range of categories including categories S and N which mean structural and non-structural damage respectively.

Repairs on a salvage car may be too high for the owner to consider, so they are sold to car recyclers.

What to look out for when insuring your salvage car

First of all, it is important to be mindful that salvage cars often come with higher premiums from insurance providers due to concerns about the vehicle's reliability. Insurers also may only offer limited coverage for the vehicle.

Premiums are often especially high for category S cars which have more significant damage. For this reason, the salvage category is an important factor to consider when buying a salvage car. However, category N cars will also come with higher rates of insurance than what would be paid for a brand-new model.

It is useful to be proactive and talk to insurers ahead of time while you're looking into buying a salvage car. Paying attention to what kind of coverage is available while looking at potential purchases makes it much easier to find a suitable policy than only considering insurance when you already own the car.

While you may have to do a little more research into what kind of offers are available to you than with a new car, salvage cars can certainly be insured. If you take the time to look, you will likely find a policy that suits you.

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