How to Insure a Car With a Rebuilt or Salvage Title

Cars are expensive, so let’s get that out of the way. Sometimes, while doing research for a new vehicle you may stumble on a salvaged or rebuilt titled vehicle. You’ll notice that they are marginally cheaper than newer vehicles or even used vehicles on the market. Rebuilt titled vehicles are tempting to anyone since the price is so attractive. They’re a risky buy since they require quite a bit of work. Understanding why the vehicle was deemed a total loss can be based on a few factors such as, has it been in an accident where it has been repaired or has it been damaged with things such as flood damage. This is important to know since it can definitely determine how risky the purchase can be. Regardless of which, these salvaged vehicles have been deemed a total loss by the insurance company and have been repaired and certified, titling them as a rebuilt vehicle. 

It’s important to know if you’ve purchased a rebuilt vehicle there are limited insurance options available to you by insurance companies. 

Here’s everything you need to know about a salvaged and a rebuilt ti

What is a Salvage Title?

A vehicle labeled with a salvage title it has been declared a total loss but the insurance company. A total loss happens when the damages cost more than a certain percentage of the vehicles worth. Usually this percentage ranges anywhere from 60% to 100% of the actual cash value of the vehicle.

When a vehicle is labeled as a salvage title, the insurance company decides to auction it off to junk yards or mechanics. These vehicles are unsafe to drive on the road as well as I’m fit. Essentially you can’t register and drive the vehicle no matter what. Although you can have the car being rebuilt and to pass inspection, If all of this is completed the car can be deemed as a rebuilt title. We’ll have more of that below. 

What is a Rebuilt Title?

Understanding what a rebuilt title is on a vehicle is fairly simple. Usually that happens right after the vehicle has been repaired from a total loss. Once the vehicle has been sold, the entity that purchased the vehicle has been repaired the vehicle to an operational level. After you will have to take it to the DMV and have it certified and registered, that is if it passes. Once you take it to the DMV there are two scenarios that will pan out here they are below:

  1. Does not pass. If it does not pass the inspection you will have to attempt to fix the issues that have arisen after the inspection. 
  2. Passes inspection. Once you had the vehicle inspected and it has been given the green light to move forward, the salvage title on the vehicle becomes a rebuilt title. 

Always remember, that when you are dealing with a vehicle that has a rebuilt title make sure to do your research about the vehicle. Once titled as rebuilt they are never able to go back to a clean title vehicle no matter how good the repairs have been.

Good or Bad Idea to Get Insurance for a Rebuilt Title?

We’ve covered a lot, giving you information on a salvaged vehicle and a rebuilt title vehicle. So the outstanding question is it a good idea to get insurance on your rebuilt vehicle or is it a bad idea? Well in short, it is a bad idea to get insurance. To a lot of insurance companies it sets off a flag and automatically put your vehicle in distress hold where it becomes riskier to insure than others. Simply due to the risk behind the insurance claim made against the vehicle.

Depending on the type of vehicle some insurance companies may offer you insurance others won’t. On the other hand, some auto insurance companies might actually offer you just liability insurance as opposed to any other coverage out there. Depending on the auto insurance company you go to, some of them may actually provide you policies for rebuilt title vehicles. It all comes down to you shopping around finding the best deals, we highly recommend that you contact auto insurance companies directly and find out what policies they have for rebuilt title vehicles. Currently on the market some of the insurance companies that actually provide you with rebuilt title policies are Geico, Allstate, and even Progressive. 

So if you Got lucky and found an insurance company that is willing to provide you with insurance coverage there are a few things that require from you before they go ahead with the coverage.

  • Certified Mechanic Approval. This means your insurance company wants to see a certificate from your mechanic stating that the vehicles and proper and operational condition.
  •  Photos. This is pretty straightforward, if the insurance company would want some photos just to see the condition of the vehicle currently in order for them to provide you with a proper estimate on your insurance premiums, and also to see if you’re able to get full coverage insurance as opposed to just liability.
  •  Repair cost. The insurance company would need this just to make sure that all the damages from the initial accident have been repaired. The receipt will be able to show them what has been repaired and how it’s been repaired, and even who has repaired it. It gives you some good leverage for a positive result. 
If you purchased a vehicle that has a rebuilt title on it and are looking for insurance, definitely check out some insurance companies here!