How Vehicle History Reports Influence Insurance Rates

When shopping for a used car, many buyers look at vehicle history reports to learn more about the car’s past. These reports can reveal a lot, including accident records, title issues, mileage discrepancies and more.

The Connection Between Vehicle History and Risk Assessment

Vehicle history reports can reveal whether a car has been in a collision, suffered flood or fire damage, or been declared a total loss and later rebuilt. These details can influence how an insurer views the reliability and safety of the vehicle. For example, a car that has been structurally repaired after a major accident might be more prone to future mechanical issues or may not perform as well in another crash. That potential for increased risk can be reflected in the rate offered.

Salvage Titles and Rebuilt Vehicles

A salvage title is one of the most significant red flags in a vehicle history report. This designation means the car was declared a total loss by an insurance company, often due to severe damage. If the vehicle was later repaired and passed inspection, it may receive a rebuilt title. While these cars can be roadworthy, they often come with limitations regarding insurance.

Some insurers may decline to offer full coverage on a rebuilt vehicle, offer limited options or require additional documentation. The reasoning is tied to the uncertainty surrounding the quality of repairs and the potential for hidden damage. Even if the car looks and drives well, its history can still influence how an insurance provider treats it.

A vehicle’s history can affect its market value, influencing appropriate coverage. If a car has a lower resale value due to past damage, that may be reflected in the coverage limits or the cost of comprehensive and collision coverage.

Learn More

Contact Allsafe Insurance to learn more about factors that impact your auto insurance rates and get a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.