Trouble Getting Auto Insurance After a Carfax Report

Reader’s Question:

In 2005, I bought a car and have it insured. When I am about to renew my auto insurance policy for this year, my agent told me that my vehicle was rebuilt according to CARFAX. I never know of this when I purchased my car. Now, I am afraid because I know that insuring or selling a car that has been rebuilt is difficult to do. What should I do? I am from Arizona.

Remy

Arivaca, AZ

I am very sorry to hear that.

You failed to mention though if you bought your car through a private party or not. Because if you did purchase your car from a private party, then in general it is as-is. Meaning to say, you bought it on its present condition, no implication of a warranty. It appears to me that if this is the case then you do not have any options to go against the seller.

However, the scenario is different if you purchased it through a dealer. As a dealer, it is their responsibility to inform you if the car has been rebuilt or not. If your dealer had failed to do so, then you can take some legal actions against them. You can contact a lawyer to better help you on legal actions to be done. I would also suggest you check with the Arizona Department of Transportation (DOT) so you could be further assisted on what you should do.

You are correct when you said that you rebuilt car is difficult to be insured. Normally, a rebuilt car implies a vehicle that has been in a serious accident before. Ask you auto insurance agent in Arivaca, Arizona on your options. In addition, if you opt to sell your car, you must inform the potential buyer of its current condition. However, this usually lowers down the market value of your vehicle.