How To Insure Motorcycle with a Salvage Title

A salvage title motorcycle signifies that the bike has been declared a total loss following an accident.

Insurance companies determine a motorcycle as a total loss when repair costs amount to a significant percentage of the bike’s value, usually falling between 75% and 90% of the market value.

Subsequently, the insurance provider sells the motorcycle to a salvage company, which then registers it with a salvage title. In some states, motorcycles declared nonrepairable may not be eligible for rebuilt titles, restricting their use to private property rather than public roads.

Table of Contents

How to Insure Motorcycle with Salvage Title

To legally operate a motorcycle on public roads, insurance is mandatory. Acquiring insurance for a salvaged motorcycle may present some challenges, but it’s not as daunting as some may suggest.

Here’s how to insure a motorcycle with a salvage title to ensure your vehicle is road-ready.

Get a State-Approved Inspection

Because your bike has been declared unsuitable for riding, you must obtain road use approval from a state agency, such as the Department of Motor Vehicles (DMV).

This inspection evaluates various mechanical aspects of the bike, including turning signals, brakes, frame integrity, and other components.

Legally Change the Title

Despite converting the title to rebuilt, insurance agencies may still hesitate to offer coverage. Therefore, conducting research to find insurance providers willing to cover previously salvaged vehicles is essential..

To change the title of a salvage vehicle from salvage to repaired, all required repairs must be diligently completed and documented.

Subsequently, the vehicle must undergo a thorough inspection, with all requisite paperwork, forms, and documentation provided. If the vehicle passes the state-approved inspection, you can apply for a rebranded title to effect the legal change.

Research Willing Providers and Coverage Options

To improve your chances of approval, consider providers specializing in coverage for such vehicles.

At a minimum, liability insurance is essential to cover damages resulting from accidents you cause.

However, additional coverage options for salvaged motorcycles may be limited, requiring thorough research for a comprehensive plan.

Apply for Motorcycle Insurance

Once you’ve repaired the motorcycle, changed its title, and found a willing insurance provider, you can apply for insurance.

Providing the insurance agency with the vehicle’s title, registration, and possibly a statement from the inspecting mechanic attesting to its roadworthiness should facilitate obtaining insurance for your previously salvaged motorcycle.

What to Watch Out for with Salvage Title Motorcycle

Considerations to Remember with Salvage Motorcycles:

1. Elevated Premiums and Depreciated Value: Despite paying similar insurance premiums to other comparable models, the settlement following an accident might be lower due to the diminished value of your salvage bike.

2. Exclusion from Coverage Post-Natural Disasters: Insurance providers may opt not to cover salvage bikes following natural disasters, as there’s a higher likelihood of the bike sustaining damage during the event and not being fully restored afterward.

3. Risk of Purchasing a Defective Product: Investing in a salvage motorcycle carries inherent risks, especially if the bike requires costly repairs exceeding the value of undamaged models. Mitigate this risk by conducting a thorough cost estimate before making a purchase.

Differences Between Salvage, Rebuilt and Non-repairable Bikes

The distinction between these damaged motorcycles could determine whether they’re suitable for backyard riding and track days only or for riding on the open road.

Salvage bikes: A salvage motorcycle is a vehicle that insurance agencies have classified as a total loss and has not yet undergone restoration or inspection for street-legal riding.

Rebuilt motorcycles: A rebuilt motorcycle is a bike that previously held a salvage title, has been restored for riding, has successfully passed state safety inspections, and has acquired a rebuilt motorcycle title.

Non-repairable bikes: Occasionally, insurance companies issue a non-repairable motorcycle title, which restricts the bike’s usage. Purchasers may either utilize the motorcycle solely for parts or restore it for private or track use.

ALSO READ

Cost of Maryland Motorcycle Insurance: Insure with the Best Companies and Save

Arizona Motorcycle Insurance Costs: Get to Know the Right Prices