Spring madness has prompted you to change cars. After a few clicks on the Internet, you have found the car of your dreams at a ridiculously low price. You learn, however, that this is a salvaged vehicle that has been rebuilt. Is this a bargain? Assurances Multi-Risques would like to give you a few pointers in order to spare you insurance and financial woes.

First, you must know that few insurance companies will cover cars that have been seriously damaged. Before acquiring the vehicle, make sure to check with your insurer or insurance broker that it will be possible to insure this car. If you have already purchased the car, don’t forget to mention that this is a salvaged vehicle in order to avoid problems if you make a claim. Having omitted this information could very well result in your insurer’s refusal to cover your claim.

The good news is that some insurers will accept to cover your vehicle providing it has passed inspection with the Insurance Bureau of Canada.


Why do insurers refuse to insure rebuilt salvaged vehicles?

Did you know that in Quebec a car is stolen every 30 minutes and that more than 17,000 vehicles were stolen in 2013? Year after year, insurance companies dish out incredible amounts of money to have their clients’ stolen vehicles replaced. Know that this criminal activity impacts your insurance premiums, even if you have never made a claim for a stolen vehicle.

One of the risks associated with buying a salvaged vehicle is that it has been rebuilt using parts taken from stolen vehicles. When insuring a salvaged vehicle, this a risk your insurer has to take into account. Indeed, imagine your insurer has settled a claim for a stolen vehicle and that a few months later parts from that vehicle show up on a rebuilt vehicle. Do you think most insurers would willingly insure a vehicle made out of parts stolen from another car for which a claim has been made? Some insurers also believe that refusing to insure such vehicles will lessen the value of stolen car parts on the black market, and could therefore possibly reduce the number of vehicle thefts on the short, medium and long run.


Are you making a good deal when buying a rebuilt salvaged vehicle?

Buying a rebuilt salvaged vehicle will be cheaper than buying the average used vehicle. It is therefore normal to think that, in case of a claim, your amount of compensation will be inferior to that of a standard vehicle. You must also know that these vehicles carry a steeper depreciation rate than standard ones.

Moreover, the insurance premium for this type of vehicle might well be more expensive given the risk taken by the insurer. Enquire about the price of insuring such a vehicle with your agent or broker in order to avoid unpleasant surprises along the way.


Helpful tips:

  • Entrusting the mission of finding insurance for a rebuilt salvaged vehicle to an Assurances Multi-Risques broker will free up your time and reduce your stress level since he or she will have no trouble finding insurers who are willing to deal with such vehicles.
  • Have the vehicle inspected by a trustworthy mechanic.
  • Ensure your driving pleasure by making sure that your car is safe and that it complies with regional regulations.


Contact your car insurer or insurance broker and let them know your situation!

1 819 791-1791Courriel