Getting insurance for a salvage or rebuilt title car is a bit of a different animal than getting regular insurance.
I think first I need to identify the difference between a Salvage Title and a Rebuilt Title.
Related Articles to Read:
- How To Sell Salvage Title Car
- How To Sell A Rebuilt Title Car
- How to Turn a Salvage Title into a Rebuilt Title
- Banks That Finance Rebuilt & Salvage Titles
Table of Contents
What is a Salvage Title?
A salvage title is issued when an insurance company declares a vehicle a total loss, usually due to extensive damage from an accident, theft, or natural disaster. The criteria for a salvage title vary by state but almost always kick in when repair costs exceed 60-90% of the car’s pre-damage value.
Important Difference: Salvage title cars cannot be legally driven, registered, or insured until they are repaired, inspected, and issued a rebuilt title.
Fact: Both Salvage and Rebuilt Title cars are considered “Branded titles“.
What is a Rebuilt Title?
Once a salvage car has been repaired and passes a state-mandated inspection to ensure it is roadworthy, it can be issued a rebuilt title.
A rebuilt title allows you to get the car registered and insured so you can legally drive it.
However, it will still carry a permanent record of its salvage history, which can affect its insurability and resale value.
Note: There is no way to remove a branding of rebuilt from the title of a rebuilt car.
Can You Insure a Salvage Title Car?
No, you cannot insure a vehicle with a salvage title since it is not considered roadworthy or legal to drive. To get insurance, you must first have a salvaged car repaired, inspected, and re-titled as a rebuilt vehicle.
Can You Insure a Rebuilt Title Car?
Yes, you can insure a rebuilt title car, but it will be more difficult and expensive than insuring a vehicle with a clean title.
Some insurance companies will not cover rebuilt salvage cars at all, while others will only offer liability coverage rather than full coverage with collision and/or comprehensive.
Insurers are often hesitant to cover rebuilt title vehicles because:
- There may be hidden or unrepaired damage that increases the risk of future claims
- It can be difficult to distinguish between pre-existing and new damage after an accident
- Rebuilt salvage cars typically have a lower resale value, which may not align with standard insurance valuation models
To get insurance for a rebuilt title car, you may need to:
- Provide detailed documentation of the repairs, including receipts, photos, and mechanic’s statements
- Allow the insurer to inspect the vehicle to assess its condition and roadworthiness
- Accept a potentially higher premium than an equivalent car with a clean title
Which Companies Insure Rebuilt Title Cars?
While some major insurers will not cover rebuilt salvage cars, there are several well-known companies that do, including:
- Progressive
- Allstate
- State Farm
- Farmers
- GEICO
- The General
- National General
- Infinity
Coverage options and availability can vary by state and individual vehicle circumstances. It’s best to shop around, compare quotes, and speak with a real agent to find the best policy.
How Much Does Rebuilt Title Car Insurance Cost?
Insuring a rebuilt title vehicle costs about 20-50% more than an equivalent car with a clean title. The exact cost will depend on factors like:
- The extent of the previous damage and repairs
- Your driving record and insurance history
- Your location and the insurer’s rebuilt title policies
- The level of coverage you need (liability only vs. full coverage)
On average, you can expect to pay anywhere from a few hundred to over a thousand dollars more per year to insure a rebuilt title car compared to a clean title vehicle.
My Conclusion
Insuring a salvage or rebuilt title car can be more complex and costly than a vehicle with a clean history, but it is still possible. The key points to getting insurance for a rebuilt title car are:
- Make sure the car has been properly repaired, inspected, and re-titled as rebuilt
- Shop around and compare quotes from insurers willing to cover rebuilt titles
- Provide thorough documentation of the vehicle’s repairs and condition
- Be prepared to pay a somewhat higher premium for coverage
