Can You Get Salvage or Rebuilt Title Insurance?
- Rebuilt titles are given to cars that had salvage titles but were then repaired and made safe for the road.
- You can get rebuilt title insurance, but your options may be limited to liability coverage.
- You should also expect to pay higher premiums than you would for a comparable clean-title car.
- Some insurers won’t cover these vehicles at all.
For most, the process of getting car insurance can be fairly straightforward: You submit an application with your car’s make, model and other details, and you’re given a quote.
But if your car has a rebuilt title, things can get more complicated. Not all insurers offer rebuilt title policies, and for companies that do, the coverages can be more limited than with a clean-title car.
Here’s what you should know about salvage titles and rebuilt titles, and what to expect when looking for an insurance policy on a rebuilt vehicle.
What are salvage titles and rebuilt titles?
A salvage title is a document that shows the car has been declared a total loss. Cars with salvage titles are no longer operational and therefore illegal to drive.
However, a car owner can choose to repair a salvage vehicle. After it’s inspected and declared roadworthy, the vehicle would then be issued a rebuilt title.
- Salvage title: A car with a salvage title has been declared a total loss by an insurance company and is not legal to drive.
- Rebuilt title: A salvage car can become roadworthy again after it’s been repaired, inspected and given a rebuilt title.
- Nonrepairable or “junk” title: A car with one of these designations is severely damaged and has no possibility of repair. The only value comes from selling off parts.
Yes, you can insure a car with a rebuilt title
While a car with a salvage title can’t be insured or registered for normal road use, it is possible to get insurance coverage on that vehicle once it’s been repaired and given a rebuilt title.
However, it’s not like insuring a regular car. Cars with rebuilt titles are considered higher risk due to their previous damage. So if you’re an owner of a rebuilt title car, you may find that the coverage available to you is limited.
For instance, you may only be offered liability coverage. Comprehensive and collision are harder to get because insurers worry about hidden issues from the prior damage. Some insurers will not offer coverage on these vehicles at all.
In addition, rates may vary depending on the insurer, so shopping around and carefully considering your options is key.
How to get rebuilt title insurance: Step by step
While the exact steps can vary depending on where you live, this is the general process you’ll follow:
- Gather documentation showing the full extent of the vehicle’s damage.
- Get your DMV safety inspection, which may also require you to provide the vehicle history report with repair records and an inspection or inspection certificate.
- Apply for a rebuilt title with the DMV.
- Get quotes from multiple insurers, not just your current carrier, and review the coverage options. In many cases, you may be offered only liability.
- Consider an insurer that specializes in high-risk policies if you’re having trouble finding insurers that will cover a rebuilt title.
What coverage can you get on a rebuilt title?
If an insurer offers rebuilt title insurance, you should be able to at least get the minimum mandatory liability coverage required by your state. Options like personal injury protection, medical payments and uninsured motorist coverage may also be available.
However, you may have difficulty finding full coverage policies
Depending on the insurer, payouts may also be reduced since the vehicle’s value drops when it has a rebuilt title.
- Liability: more widely available; generally required by law
- Full coverage: typically includes comprehensive and collision coverages on top of minimum coverage requirements; much harder to find for rebuilt titles
How much does rebuilt title insurance cost?
Rebuilt title insurance costs can vary significantly depending on which insurance company you choose. In general, insurance for a rebuilt title vehicle is more expensive than coverage for a clean title vehicle.
When insurers set rates, they don’t just look at the risk of the driver. They also consider the risk of the vehicle itself. When you apply for coverage, the vehicle identification number (VIN) will show the car had a salvage title at one point, so that will be factored into your rate.
Along with higher premiums, rebuilt title insurance policies typically offer reduced payouts if the car is totaled. This is because a rebuilt car’s actual cash value (its estimated sale value) is reduced compared to a similar car with a clean title.
Frequently asked questions
Yes. Many major insurance companies, such as State Farm, Progressive, Farmers and American Family, have been known to insure cars with rebuilt titles. Not all will offer full coverage, however. To understand your options, it’s a good idea to get quotes from a wide array of insurers. That way, you’ll be able to see which coverages are available to you and what rates you can expect to pay.
Yes. Once a car has a rebuilt title, it can never be considered a clean title car again. The previous salvage title status will always show up in the VIN history. Insurance rates for that vehicle will always be impacted by the title.
While there is no rule denying full coverage insurance to rebuilt title cars, it may be hard finding an insurance company willing to offer the option. You’ll likely need to call around if you want to get comprehensive and collision on top of liability coverage, and you’ll need to provide full documentation of your car’s repairs.