Reader’s Question:

Good day! I want to know if vehicle branding will affect my ability to get cheap car insurance rates. Thanks!

Darwin

Birmingham, AL

First, let me define vehicle branding for the sake of other readers out there. Vehicle branding is a legal deterrent for using or reselling aftermarket parts, stolen vehicle, or preventing the use of scraps or salvaged materials. It is usually a permanent designation on vehicle’s title, registration, and documents and encoded along its VIN (vehicle identification number) to protect possible buyers from vehicles that are stolen or salvaged. It has two objectives: First is to prevent individuals from dealing stolen vehicles, and the second serves as a warning for the protection of consumers.

Vehicle branding is usually done after an accident or collision. A vehicle damaged in a collision is branded according to loss of value. The damage is encoded with their vehicle identification number (VIN) and linked to their designations. Vehicle branding may depend on the jurisdiction of the state. Vehicle branding is used by a car insurance company for basis of coverage during repairs, or for the level of coverage, for that matter.

Vehicle branding will significantly have an effect on your ability to get a cheap car insurance rate. For instance, a vehicle branded as salvaged would normally have a lower value than a vehicle with clear or normal branding. It is equally important as other factors when you are about to buy your car insurance or perhaps, even buying second hand cars. It is also being considered when claiming for loss of value after a collision.