Owning or buying a car with a salvage or rebuilt title can offer unique rewards, but it also comes with a set of insurance considerations. Before an insurance company will consider covering it, you typically need to make sure the vehicle is certified for road use. This article will guide you through the process of getting insurance for a car with a salvage or rebuilt title.
Can I get insurance for a car with a salvage title?
In general, you can typically only get car insurance for a vehicle with a salvage title after it is repaired, passes a state-authorized safety inspection, and has its title upgraded to rebuilt status.
Rebuilt title vs. salvage title
The terms used for branded titles, such as “salvage” and “rebuilt,” vary slightly by state. It’s important to understand how they affect your ability to insure and legally drive a vehicle.
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Salvage title: A car branded with a salvage title with no further descriptor is typically banned for use on public roads and not insurable.
- Cars usually receive a salvage title when they are declared a total loss after an accident, fire, flood, or other events that result in repair costs exceeding the car’s value.
- In some states, a salvage title accompanied by the words “parts-only” or “junk” means the car has been determined to be irreparable and can only be sold for scrap.
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Rebuilt title: After you repair a salvage vehicle and have it pass a state-authorized safety inspection, you can apply to have the vehicle’s title upgraded to rebuilt status.
- It’s important to find out how your state defines a “rebuilt” vehicle.
- Once your vehicle’s title is upgraded to your state’s “rebuilt” designation, you’ll be able to drive it legally on public roads, provided you meet your state’s registration requirements, which usually include obtaining car insurance.
How can I get insurance for a car with a rebuilt title?
While it is possible to get insurance for a car with a rebuilt (or salvage-rebuilt) title, it may require a little more legwork than it normally takes for a car with a clean title. You should still compare quotes from multiple companies to find the best rate, keeping in mind that some companies don’t insure cars with rebuilt titles, while others have limitations on the coverages they offer.
Here are a few steps you can take to simplify your search:
Ask an insurance agent for help
While online shopping is convenient, it may be more helpful to ask an insurance agent for assistance in insuring a car with a rebuilt title. Insurance agents often have access to products and services not readily available online. An agent may help you get insurance from a lesser-known company that accepts rebuilt vehicles or insures them at cheaper rates.
Insurance companies that cover cars with rebuilt titles
If you’re not sure where to begin your search for insurance for a car with a rebuilt title, here are a few companies to consider contacting for help:
- Allstate
- American Family
- Farmers
- GEICO
- Infinity
- Omni
- Progressive
- State Farm
- The General
- 21st Century
Be upfront about your vehicle’s title status
When discussing a quote or application, whether on the phone, in an online chat, or in person, let the agent or company representative know about your car’s title status from the beginning. This way, they can let you know right away if their company insures rebuilt cars. If they don’t, you can move on to the next company on your list.
Provide your VIN
Most insurance companies only need your vehicle’s year, make, and model number to provide a quote. However, they will eventually run your car’s Vehicle Identification Number (VIN) through their databases to confirm your information, including your vehicle’s title status.
Providing your VIN at the beginning of the process allows you to get an accurate estimate of your rate or find out if you qualify before investing too much additional time into an application.
How does a salvage or rebuilt title affect insurance?
Cars with salvage or rebuilt titles affect insurance by posing risks that some companies don’t accept, and others only cover at higher rates than available for cars with clean titles. The lack of uniformity in rebuilt cars makes it harder for insurance companies to accurately estimate the costs of insuring them. This makes some insurance companies avoid rebuilt cars altogether, while others charge high rates to insure them.
Additionally, even after a rebuilt car passes a state safety inspection, it may still contain hidden defects or damage that could contribute to an accident. This creates another potential risk for insurance companies to consider as they set rates for rebuilt cars or decide whether to cover them at all.
Regardless of how skillfully they are repaired, rebuilt cars tend to have lower market values than comparable ones with clean titles. If you get full coverage for a rebuilt car that is subsequently totaled in an accident, your insurance payout is likely to be lower than it would be if the car had a clean title.
Should I get a car with a salvage or rebuilt title?
If you’re buying a car with a salvage or rebuilt title, it’s best to get car insurance quotes ahead of time to ensure you can insure the vehicle at an affordable price. You usually only need to provide the VIN and a few other details about the car and yourself to get reasonably accurate price estimates.
If you’re unsure about a vehicle’s title status, you can run the VIN through the free online NICB VINCheck, provided by the National Insurance Crime Bureau. The site lets you see if the car has previously been issued a salvage title.
FAQs
Please refer to our FAQs section for more information.
Conclusion
Insuring a car with a salvage or rebuilt title requires some additional steps compared to insuring a car with a clean title. It’s important to understand the specific terms used in your state, be upfront with insurance companies, and compare quotes from multiple providers. By following these guidelines and being well-informed about the process, you can find the right insurance coverage for your car with a salvage or rebuilt title.
