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Can You Get Motor Insurance For a Code 3 Vehicle?

Depending on your financial situation, you may consider buying the cheapest motor car possible. Naturally you need to ensure that the vehicle will not break down in a month or two, and will have some sort of reliability attached to it.

Some people may consider buying a code 3 motor vehicle. What is a code 3 motor vehicle? Well code 3 means that the car has either been previously involved in a collision, or has been stolen and recovered. Sometimes the collision may not have caused damage that would leave the vehicle immobile, yet it would still be considered a code 3 due to the fact that the insurance company has written the vehicle off. They will usually write a vehicle off if the cost of repairing it is not justified in the value of the vehicle. Private buyers or dealerships then purchase that written off vehicle and repair or rebuild it, and resell it as a code 3 vehicle. A stolen and recovered vehicle will also be deemed as being a code 3. This is because the insurance company will have written off the old vehicle and paid out for the claim, so when the vehicle is recovered, it is basically a ghost, or written off car. Another reason why stolen and recovered vehicles are called this code is because in some instances when the vehicle is recovered, the thieves have already changed the VIN number. The VIN number is a set of numbers on the engine that identify the car.

Naturally, code 3 vehicles will be very affordable to purchase, but they can have resulting problems. A lot of banks will not finance these vehicles. There are banks which do finance code 3 motor cars, but they are usually very hesitant or strict with their criteria. It is best to pay in cash if you are going to be buying a code 3 vehicle. If you cannot afford to buy your vehicle in full cash, then you need to try and take out a personal loan with which to pay for your new vehicle.

One of the main concerns for code 3 vehicle owners is the insurance. In a lot of cases, insurance companies are extremely hesitant to insure code 3 vehicles. If you have a code 3 vehicle that you would like to insure, chances are you will have to look around very carefully to find a willing insurance company. Obtain as many quotes as you can from the willing insurance companies to see where you can get a good deal. You may have to look long and hard, or take out specialized insurance, as insurance companies do not favor code 3 vehicles at all.

However difficult it may be to find insurance for your code 3 vehicle, it is imperative that you insure it. You do not want to find yourself liable for the damages you have caused to another person's vehicle should you be involved in an accident, nor do you want to be out of pocket if you have a damaged car.

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