Are you skeptical when you visit a used car lot? It’s easy to feel like a used car salesperson might be trying to take advantage of you, especially if this is your first time buying a vehicle. But with a bit of research into the car’s history, you can spot red flags and avoid buying an uninsurable jalopy.
How to Check a Car’s History
Since 1954, U.S. car manufacturers have applied a vehicle identification number (VIN) to each vehicle made. At the time, there was no industry standard and the VINs varied by manufacturer. In 1981, the National Highway Traffic Safety Administration stepped in to create a standardized VIN system, requiring all car companies to use a 17-digit VIN.
Since no two VINs are alike, they are essentially a “fingerprint.” The information embedded within the VIN includes the:
- Car manufacturer
- Country of origin
- Plant that assembled the vehicle
- Model, body type and engine
- Model year
Identify the VIN
You can locate the VIN on the lower left of the vehicle’s windshield or the driver’s side door pillar. You can also find it on your car registration or insurance ID card.
Conduct Thorough Research
To look up some of a vehicle’s history, visit the National Insurance Crime Bureau’s free VINCheck site. This site offers valuable information about whether the car was stolen and never recovered and whether it had a salvage title. VINCheck is just a starting point since it won’t include information about previous accidents.
Other sites such as Carfax and AutoCheck charge a fee for a vehicle history report but can provide additional useful data such as ownership, accident and service history, as well as worrisome title brands such as fire, hail and flood.
A “rebuilt title” should be cause for concern. That means the car was previously deemed a total loss and while it needs to pass state safety requirements to get a rebuilt title brand, it could be an insurance nightmare. Some car insurance companies won’t offer optional coverage types like collision and comprehensive insurance, or may not offer any coverage at all.
Get a Mechanic’s Inspection
Vehicle history reports are very useful but can be incomplete. The Federal Trade Commission recommends you supplement a vehicle history report with an independent vehicle inspection.
What Is a Vehicle History Report?
A vehicle history report is a collection of records that includes information such as ownership history, repair records, whether the car was in any accidents or floods and if it was ever declared a salvage title vehicle.
What Is on a Vehicle History Report?
Vehicle history reports may include the following information:
- Accident and damage history. This could include minor fender benders, major accidents and flood damage. This information may be sourced from law enforcement agencies, auto repair shops, motor vehicle departments and insurance companies.
- Mileage. This could help you determine if the seller’s odometer reading is accurate.
- Service history. This may include maintenance records (such as regular oil changes), open recalls and safety inspections. But not all mechanics report the maintenance they performed, meaning this section of the report may be incomplete.
- Title history. This may include information on ownership history, length of ownership, if the car was previously a rental vehicle and title brands, such as a salvage title, rebuilt title or lemon.
What Is Not Shown on a Vehicle History Report?
Vehicle history reports usually do not include:
- Wear and tear. A vehicle history report won’t indicate a car’s wear and tear or overall condition.
- Unreported accidents. Accidents that are not reported will not be included on a vehicle history report. For example, if the previous owner did not report a car accident to their insurance company and repairs the vehicle themselves, it will not be included on the vehicle history report.
You may want to have your mechanic inspect a car before you buy it to find out if there is any cause for concern, such as major mechanical issues or a lack of maintenance.
Why Is Car History Important?
A car’s history report can provide information, such as a car’s ownership history, maintenance history and if there have been any major repairs due to an accident or mechanical problems. It can be a valuable resource to help you make a well-informed purchase decision.
Here are a few other examples of why a car history report is important:
- Cars with structural damages from flooding or fire may no longer be safe to operate.
- Car insurance companies may not offer optional coverage types like collision and comprehensive insurance for cars with rebuilt titles, or may not offer any coverage at all.
- An odometer check can help you identify inaccurate or fraudulent mileage reporting, such as mileage rollbacks and rollovers.
When Should You Get a Car History Report?
You should get a car history report when buying or selling a used car. If you’re a buyer, the report can potentially uncover issues that might raise a red flag.
On the other hand, if you’re selling a vehicle, a car history report can provide transparency to a potential buyer and help ease some of their concerns.
It’s common for dealerships to provide free Carfax reports both online and at the dealership for used cars they are selling, so be sure to take advantage of this perk.
How Do You Get a Car History Report
You can purchase a car history report from companies such as:
How Much Does it Cost to Get Your Car History Report?
A single car history report can cost between $25 and $45, depending on where you purchase it from. If you need more than one car history report, you can usually get a better deal if you buy them all from the same company. For example, three Carfax reports cost about $65 compared to $45 for one report.
Are There Free Options to Get Your Car’s History Report?
Free options for finding a car’s history report include:
But information from free sources may be limited. For example, VINcheck can provide information on whether the car has ever been stolen or if it has a salvage title, but it won’t have information such as major accidents, recalls, maintenance or ownership history.
If you’re buying a used car, it doesn’t hurt to ask if the dealership or private seller is willing to provide a free copy of a vehicle history report.
You can use the free Carfax Flood Check tool to determine if a car was damaged in a flood by finding out if a branded title was reported.
Auto Insurance for Cars with Bad Track Records
While previous accident repairs won’t hinder your insurance purchase, a salvage title for a formerly totaled car probably will. A previous salvage title indicates that the car was deemed a total loss by an insurance company, then rebuilt and deemed roadworthy. But many insurers see vehicles with a past salvage title as too risky to insure and might decline to offer certain coverage types, or coverage altogether.
“While most insurers shy away from offering comprehensive and collision coverages for cars with salvage titles, they might be willing to offer liability coverage for these types of vehicles,” says Dan Scroggins, vice president of personal lines at AAA Club Alliance.
Liability car insurance is required in most states, but it pays others, not you. If you can find a car insurance company that will sell it to you, consider collision and comprehensive insurance:
- Collision car insurance pays for car damage, such as a dent from backing into a pole or your crushed fender if you rear-end another car
- Comprehensive car insurance coverage pays for problems such as theft, vandalism, floods, fires, collisions with animals and falling objects
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Research Car Insurance Costs Along With Car History
Before you plunk down thousands of dollars on a used car, a little bit of legwork can go a long way. The VIN number is a good starting point, coupled with an independent vehicle inspection by a mechanic. The last thing you want to do is find out you bought a car with hidden damage or a car that is uninsurable.
You’ll also want to know how much insurance will cost for your prospective car. Compare car insurance quotes from multiple companies before you buy the car so that the insurance bill doesn’t take you by surprise.
“Although it’s crucial to research a vehicle worth purchasing, you’ll also want to do your homework on the coverage you can get for the car. Since you need coverage when you drive off the lot, you’ll want to compare coverage options before you have the keys in hand,” says Scroggins.
Forbes Advisor’s list of the most and least expensive cars to insure may help you identify a vehicle that falls within your car insurance budget.
