Comp and Collision for Salvaged Vehicles??

[khang.mis]

Is it profitable for carriers to provide comp and coll coverage for salvaged vehicles? As an agent, should I accept this risk?

I heard that the insured will pay the full premium but when there is a claim, the carrier will only pay for "half" of the damages b/c it is salvaged. Any truth here?

Thanks in advance!

 

[MGBAgency]

Depends if the vehicle is a total loss. Why don't you just ask your Underwriting department?

 

[INSUREGEEK]

I can say that is true in Ohio....

Most carriers here won't do any Collision on a Rebuilt Salvage title.

The ones that do? Insured pays full premium, but a total loss gets cut by 50% if the car gets "totaled" again. That's not in black and white anywhere that I know of but......

It's not until insured surrenders the title in advance of getting the insurance check that they even realize this is an issue.

As to whether you should accept the risk? Get the client what he wants if you can, but PLEASE present him the options that are in his best interests!