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Can You Get An Extended Car Warranty With a Salvag...

Vehicle Maintenance, Ambassador Plan

By Jack Lightner | 10/7/19 9:28 AM | 0 minutes to read

Yes, you can absolutely get an extended car warranty even if your title is considered salvage, or it’s branded. Your options are more limited, but you can still get a great policy as I’ll talk about in a minute.

In 2016, there were nearly 6.3 million traffic crashes on US Roads – and several million more wrecked cars.

Many of the cars involved in the more severe accidents will never see the light of day again.

But for all the cars an insurance company declared as losses, some managed to find their way back onto the road again. These cars are considered salvage – and will have their title marked accordingly to identify them as having been in a major accident.

But a salvage brand is far from the only brand you’ll encounter.

The 5 Most Common Branded Titles To Look Out For

The one thing to keep in mind is that brands vary from state to state. Check with your local DMV for the definitions.

You also need to keep in mind that since title brands can vary from state to state, it’s possible for a title brand to “wash” or fall off the title if the branded car is registered in a state with different laws. It’s this practice that gives us the great stereotype of the shady used car salesman.

With that in mind, there are 5 main title brands you’ll need to look out for.

1: Salvage Title Brand

Impreza-Damage-Parts-Only

We’ve already touched on salvage titles a little bit, but insurance declaring your vehicle a total loss is only one way you’ll end up with a salvage title.

A salvage title can also be issued by states after a vehicle suffers major damage, and the cost to repair it is over a certain percent of the car’s fair market value.

For instance, in Florida where we’re located, the Florida Department of Highway Safety and Motor considers a vehicle a total loss when repairing or rebuilding the vehicle is 80% or more of the fair market 311value. Check with your local DMV for the specific value, as it does vary from state to state.

2: Lemon Title Brand

CR-Cars-AH-Lemon-Car-12-15

Lemons are pretty damn sour, and so is a lemon title brand, given to cars that have excessive mechanical problems. If a car has malfunctioned several times, and in doing so has made it unsafe, the state will step in and brand the title a lemon.

According to the National Independent Automobile Dealers Association, all 50 states have a form of a New Car Lemon Law, while only 6 states have a Used Car Lemon Law.

The 6 Used Car Lemon Law States are:

  • Hawaii
  • Massachusetts
  • Minnesota
  • New Jersey
  • New York
  • Rhode Island

However, the definitions of a lemon vary from state to state, so check with your local DMV for a clearer picture.

3: Water Damage Title Brand

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We know a thing or two about this one in Florida, where a good flooding is par for the course, as are water damage brands. It's no surprise to us that we have the 4th most flood damaged autos a year.

In 2017, Carfax research estimated that nearly 325,000 of these are on the road right now, with major states including:

  1. Texas: 51,000
  2. Lousiana: 29,000
  3. Pennsylvania: 20,000
  4. Florida: 19,000
  5. Kentucky: 16,000
  6. Illinois: 15,000
  7. South Carolina: 13,000
  8. Virginia: 13,000
  9. North Carolina: 13,000
  10. Michigan: 11,000

Stay away from cars with a water damage brand, as the effects of water damage often aren’t apparent and can haunt you for years afterwards, even if the car is running when you see it.

It’s common for these to be washed, so getting a vehicle history report is extremely important to make sure you don’t end up with a water damaged car.

4: Odometer Rollback Title Brand

odometer-fraud-infographic

It’s all about the numbers. Numbers don’t lie, unless it’s the number on your odometer, which can be reset by a talented mechanic.

The National Highway Transportation Safety Administration estimates that more than 450,000 illegally reset vehicles are sold each year, costing consumers more than $1 billion.

Resetting the odometer is a Federal crime, which will land the reset car with a Odometer Rollback Brand.

5: Hail Damage Title Brand

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Hail is responsible for over $1 billion in property damage annually, including up to 60% of severe weather insurance claims.

The top 10 states for hail claims are:

  1. South Dakota: 26.5 / per 1,000 vehicles
  2. Nebraska: 19.1 / per 1,000 vehicles
  3. Oklahoma: 18.4 / per 1,000 vehicles
  4. Kanas: 16.5 / per 1,000 vehicles
  5. Wyoming: 15.2 / per 1,000 vehicles
  6. Montana: 11.8 / per 1,000 vehicles
  7. Colorado: 10 / per 1,000 vehicles
  8. Missouri: 9.3 / per 1,000 vehicles
  9. Iowa: 7.6 / per 1,000 vehicles
  10. Texas: 6.7 / per 1,000 vehicles

Hail is tricky because it usually damages the car’s body, not the mechanical parts. For insurance companies, this almost always means an expensive repair, which makes it easier to simply write the car off. Not all states will write off hail damage separately – some will just declare it salvaged.

 Your extended warranty options with a branded title

 

To help you out, we’ve gone ahead and compiled a list of coverage options you can get with a salvaged or branded title. We’ve included ourselves, and our 4 biggest competitors. If you’ve searched around for extended car warranties, you’ll know who they are!

To make it easier, we’ve searched for the most applicable coverage plan, along with the specific language relating to the salvaged or branded exclusion.

 

Protect My Car

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Salvage Title Brand

Yes (Ambassador Policy)

No

(Premier Policy)

No

(Blue Plan)

No

(American Auto Shield Bronze)

No

(Powertrain Plus Gold Coverage)

Lemon Title Brand

Yes (Ambassador Policy)

No

(Premier Policy)

No

(Blue Plan)

No

(American Auto Shield Bronze)

No

(Powertrain Plus Gold Coverage)

Water Damage Title Brand

Yes (Ambassador Policy)

No

(Premier Policy)

No

(Blue Plan)

No

(American Auto Shield Bronze)

No

(Powertrain Plus Gold Coverage)

Odometer Title Rollback Brand

Yes (Ambassador Policy)

No

(Premier Policy)

No

(Blue Plan)

No

(American Auto Shield Bronze)

No

(Powertrain Plus Gold Coverage)

Hail Damage Brand

Yes (Ambassador Policy)

No

(Premier Policy)

No

(Blue Plan)

No

(American Auto Shield Bronze)

No

(Powertrain Plus Gold Coverage)

Contract Language

No opt out language needed, as the Ambassador plan covers cars with salvaged and branded titles.

Section E (Exclusions):

 

“If Your Vehicle has ever been issued a restricted title, including but not limited to: gray market, total loss, salvage/refundable, salvage theft, assembled, dismantled, scrap, fire, flood, physical damage, saltwater, frame change, motor change, body exchange, junk or parts only.”

Exclusions:

 

H. If Your Vehicle has ever been a total loss, salvaged, rebuilt, is a grey market or similarly titled vehicle.”

Section D: Exclusions

 

“IS A LEMON LAW BUYBACK VEHICLE, IS A GREY MARKET VEHICLE OR HAS EVER HAD A TITLE INDICATION OF SALVAGE, JUNK, BRANDED OR OTHER DESIGNATION INDICATING THAT THE VEHICLE HAD BEEN STOLEN, WRECKED, DESTROYED, WATER DAMAGED, OR OTHERWISE DAMAGED TO THE EXTENT THAT IT WAS CONSIDERED TO BE UNECONOMICAL TO REPAIR;”

Section E: What is Not Covered:

 

“Repairs if YOUR VEHICLE is a non-U.S specification model, is rated over 1 ton capacity (13,600 GVW), or has a title indication of salvage, junk, or other designation indicating that the vehicle had been stolen, wrecked, destroyed, water damaged, or otherwise to the extent that it was considered to be uneconomical to repair, or a lemon law buyback”

 

Wrap up

If you have one of the 5 main types of branded titles (Salvage, Water Damage, Odometer Rollback, Lemon Law Buyback, or Hail) you can still get extended warranty coverage, but your options are going to be limited.

 Luckily, Protect My Car’s ambassador program will cover you even if you have a car that currently has a branded title, or if you’re thinking about buying one.

The Protect My Car Ambassador Policy

At the moment, we’re a bit of an anomaly in the extended car warranty industry with our Ambassador program, that covers cars up to 300,000 miles, even if you have a salvage or branded title. We can do this because unlike our competitors, we service our own contracts, meaning we’re the ones that pay for your repairs, not a 3rd party.

Our Ambassador plans allow you to pick a deductible for your repair, which can be either 25% or 50%. Once you pay the deductible, we’ll step in and pay the rest.

Our Ambassador contract is also affordable, and on average your monthly payment will cost less than a night out for two.

Your time is valuable. Don't waste it calling other companies only to find out that they don't cover branded titles. 

Get a free quote from Protect My Car today and start saving on car repairs, even if your title has a brand.

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