How To Insure a Car With a Rebuilt or Salvage Title
If you have a car with a rebuilt title, you can probably only get liability insurance, which only pays for the damage you cause in an accident.
Find Cheap Car Insurance Quotes in Your Area
Once a salvage car has been refurbished and tested, it can qualify for a rebuilt title, which means you can register, insure and drive it. But even with a rebuilt title, you can probably only get liability insurance. Most companies won't offer full coverage, which adds coverage for your car. And you often can't get a quote online.
Can you insure a car with a rebuilt or salvage title?
You can't usually insure a car with a salvage title because it isn't legal to drive it on the road. /pullquote]
Cars with rebuilt titles can be insured, but it's more difficult than for cars with clean titles.
Most insurance companies will sell you a liability policy for a rebuilt title car. Liability coverage only pays for the damage you cause in an accident. Insurance companies are often hesitant to offer a full coverage policy, which adds coverage for your own car.
That's because it's hard to decide how much a rebuilt car is worth. If an insurance company doesn't know how much to pay you when your car is damaged, it usually won't offer you collision and comprehensive coverage.
According to Kelley Blue Book (KBB), a rebuilt salvage title car is typically worth 20% to 40% less than one that has a clean title. If you make a comprehensive or collision claim on a rebuilt salvage car, you should be prepared for a much lower insurance payout.
Another concern is safety. Rebuilt cars may have issues that weren't fixed during the restoration process, which can be more dangerous on the road.
For example, a mechanic might overlook certain structural or alignment issues, or even skimp on certain steps to make the process cheaper. Because of this, car insurance companies often assume rebuilt salvage title cars are more dangerous, which makes them more likely to be involved in insurance claims.
Find Cheap Car Insurance Quotes in Your Area
How to get rebuilt salvage title car insurance
Some companies won't cover rebuilt salvage title cars, even if you just want liability insurance, so be prepared to compare quotes from multiple companies.
- Shop around: If you want full coverage auto insurance, which includes comprehensive coverage, you'll need to contact several companies and provide info about the vehicle's history to see which companies will offer you rebuilt salvage car insurance.
- Be prepared for higher rates: Not every insurance company charges more for rebuilt title vehicles, but some companies add a surcharge of up to 20%.
- Consider reducing your coverage: In many cases, it can be a better deal to only get liability coverage rather than full coverage because the potential payout for any damage to the car is lower.
- Know when to opt for a car with a clean title: If the amount you're paying in car insurance exceeds the amount you saved by getting a rebuilt salvage car, then you may want to reconsider your options.
Once you've found a company that will cover a rebuilt salvage car, you'll typically need to provide info about your car to get a quote and buy a policy:
- Certified mechanic's statement: Most insurance companies require this to verify that the car is in good working order.
- Photos of your car: Pictures (and sometimes videos) of your car might be necessary if you want full coverage insurance. The photos act as "before" images that the company can compare damage to if you make a claim.
- Your car's original repair estimate: You should get an original repair estimate, which goes over the damage and improvements made, when you buy a rebuilt title car. This document gives the insurance company proof that all damage has been repaired.
Which insurance companies cover rebuilt titles?
State Farm and Geico offer full coverage insurance for rebuilt title cars.
Progressive, Allstate and Mercury also offer policies for rebuilt title cars, but there may be restrictions, such as only providing liability coverage. They may not offer comprehensive and collision, which cover the cost of damage to your rebuilt car.
Best car insurance companies for rebuilt title cars
Company | Covers rebuilt salvage title cars | Value Penguin rating |
|---|---|---|
| State Farm | ||
| Progressive | ||
| Geico | ||
| Mercury | ||
| Allstate |
Because insurance for a rebuilt title car is not a standard policy, you usually need to call to get a quote. And even if an insurance company offers this type of policy, you might not be able to get coverage. Each policy is determined on a case-by-case basis, depending on the car's damage history and the repairs that have been made.
What is a salvage title?
A salvage title, sometimes called a branded title, is given to a car after it's been so badly damaged that it's declared a "total loss."A total loss happens when a vehicle suffers major damage and the cost to repair it is nearly as much as the car is worth.
The level of damage for a car to be considered a total loss differs by state and insurance company, but it's typically between 60% to 90% of the car's value.
For example, in Oregon, the threshold is 80%, whereas it's 100% in Texas. Your insurance company typically declares whether the car is a total loss.
Once a vehicle is declared a total loss, it gets a salvage certificate, which means that the vehicle cannot be registered or driven on public roads.
- After getting a salvage title, insurance companies auction off the vehicle to rebuilders or salvage yards.
- If the car is rebuilt and passes an inspection, it can then be issued a rebuilt title.
Difference between a rebuilt and salvage title
Rebuilt and salvage titles both mean that a car has been severely damaged to the point of being more expensive to repair than replace. The difference is that a salvage title car has not been repaired, and a rebuilt title car has been fixed.
- Clean title: This is what cars have if they've never suffered serious damage, had the odometer altered or been determined to have a defect.
- Salvage title: Cars that have been totaled but not fixed get a salvage title. You can't legally drive cars with a salvage title, and you usually can't insure them.
- Rebuilt title: If you refurbish a salvaged car and it meets your state's requirements for being roadworthy, it gets a rebuilt title. This means it can be legally driven again and you can get insurance on it.
Type of title | Can you drive on roads? | Can you get liability only? | Can you get full coverage? |
|---|---|---|---|
| Clean title | |||
| Salvage title | |||
| Rebuilt title | |||
| Junk title |
Should you buy a car with a rebuilt title?
There's nothing inherently bad about a car that has a rebuilt salvage title.
However, it can be hard to determine the quality of the rebuild unless you're familiar with cars. Since each state has its own standards for a rebuilt title status, it's important to get your own inspection done. A mechanic can help you understand if there are any major problems with the car and whether it's road-ready.
Before you buy a car, you should find out if it has a clean, salvage or rebuilt title. Often, you can determine what type of title a car has by the title's color. However, the color designations vary by state.
In most states:
- A green title is clean.
- A blue title is salvage.
- An orange title shows the car is a rebuilt salvage.
You typically can't buy a salvage car, but you can buy a rebuilt salvage vehicle from a private seller.
Pros and cons of buying a car with a rebuilt salvage title
Pros
- Cheaper to buy
- Can be a good value if repairs are high quality
Cons
- Harder to insure
- Lower resale value
- Potential hidden damage
- Harder to get financing
Difference between a nonrepairable and salvage title
In some cases, a car is damaged so severely that it's declared unfit to be driven, even if it were to be substantially repaired.
If this is the case, the car is given a nonrepairable title (also called a junk title) instead of a salvage title. Since there's no way to restore the title, a nonrepairable car can't be used for anything other than parts.
Frequently asked questions
Can you get insurance on a salvage title car?
No, a car with a salvage title can't be insured and isn't legally allowed to be on the roads. However, if you repair the car to meet your state's standards, the title can be reissued as a rebuilt title. Then the car can be insured and driven on the roads.
Do rebuilt salvage cars cost more to insure?
Cars with a rebuilt salvage title can be more expensive to insure because insurance companies might view them as more likely to be in accidents. However, you can lower insurance costs for a rebuilt car by not using the car for commuting or by qualifying for a discount for having multiple policies with the same insurance company.
Can you get full coverage on a rebuilt title car?
Yes, it is possible to get full coverage insurance with a rebuilt title. However, not all companies offer it. The potential payout for damage to the vehicle may be less because a car with a rebuilt title is generally worth less than a car with a clean title. In many cases, it's a better deal to only get liability insurance for a car with a rebuilt title.
What are the best insurance companies for rebuilt salvage title cars?
State Farm and Geico have the best car insurance for rebuilt title cars because they are highly rated companies that have full coverage options for previously salvaged cars.
Sources
Insurance company coverage information about rebuilt title cars and their restrictions was sourced from companies and insurance agents. Company rating information is based on the independent review of all policy options by ValuePenguin's editorial team, factoring in customer service, affordability, coverage offered and overall shopping experience. Other information was sourced from multiple states' departments of motor vehicles (DMVs).
About the Author
Senior Writer
Licensed Insurance Agent
Cate Deventer is a Senior Writer who specializes in health insurance, Medicare, auto and home insurance. She's been a licensed insurance agent since 2011.
She started her insurance career working as a customer service agent for State Farm. She later moved to an independent agency, where she worked with several insurance companies and hundreds of clients. She quoted policies, filed claims and answered insurance questions. In 2021, she pivoted her career and began writing about insurance for Bankrate. She moved to ValuePenguin in 2023 and began writing about health insurance and Medicare.
Cate has a passion for helping readers choose insurance to fit their needs. She enjoys knowing that her research and knowledge help people choose insurance products that make a positive difference in their lives.
How insurance helped Cate
Cate used her health insurance knowledge to navigate a surgery in 2023. Understanding how her policy worked let her focus on recovery instead of worrying about bills.
Expertise
- Health insurance
- Medicare & Medicaid
- Auto insurance
- Home insurance
- Life insurance
Credentials
- Licensed Life, Accident & Health Insurance Agent
- Licensed Property & Casualty Insurance Agent
Referenced by
- CBS
- NBC
- Wall Street Journal
Education
- BA, Theatre, Purdue University
- BA, English, Indiana University
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
