Auto Insurance Claims: Rebuilt title/insurance policy, title insurance policy, kelley blue book

Question
I recently bought a salvaged title vehicle.  When I called my insurance company to have it added to my policy they never asked any questions regarding its title.  I went ahead with full coverage on the vehicle.  Does it make a difference if the title is clean/rebuilt to my policy for monthly payment purposes or if we were to get in another accident?  I know the value of the car is lower, I just didn't know if my insurance company needs to know that it is a rebuilt title.  Thanks

Answer
Hello,

Yes, it makes one heck of a difference! In the event of a claim, you will find that the vehicle is worth up to 35% less. It doesn't matter if you tell them that it is a salvage. They will already know at the time of the claim. They use carfax and other sources. You will not get actual cash value per Kelley Blue book at the time of a claim.

You might as well tell your agent now, because they may lower the premium you are paying. Do not ASSUME that you know more than the insurance company. In many cases, they are looking for anyway that they can diminish their claim exposure.