How to Insure a Car with a Rebuilt or Salvage Title

It may seem like a fantastic deal to purchase a car that has been declared salvage after being damaged in an accident and then rebuilt. But finding junk car insurance could be more difficult than finding a regular policy.

Your vehicle might be given a salvage title if it has been deemed a total loss. Because it’s usually against the law to operate a vehicle with a salvage title on public roads, a car with a salvage title cannot be insured. Sounds really bad, but, can I get auto insurance for a rebuilt title?

You might be able to get auto insurance, but it might be challenging if you get the automobile repaired and your state transportation office provides it with a rebuilt title.

Not all firms offer coverage for these kinds of automobiles, and car insurance alternatives for salvage or rebuilt titles are often more expensive. However, in order to drive your automobile and be financially covered in the event of an accident, you must have insurance.

Go through the article, and explore how to insure a car with a rebuilt or salvage title. 

What is a Salvage Title Car?

If a car has a salvage title, it signifies it has sustained significant damage and is no longer safe to drive. Vehicles with a salvage title are often those that have been deemed a total loss or totaled, meaning that it would be more cost-effective to replace the car than to repair it.

The only way to get a car with a salvage title back on the road is to restore it. 

A licensed repair specialist is often required to rebuild the car and make sure it passes inspection. Your vehicle will be given a rebuilt title if the inspection goes well. After that, before you drive it, you’ll require insurance. It should be noted that not all insurers provide coverage for vehicles with rebuilt titles, and those that do may restrict your options for coverage.

The Differences Between a Salvage and Rebuilt Title

A vehicle that has been declared a total loss by an auto insurance company receives a salvage title from the state. A car with a salvage title is eligible to acquire a rebuilt title if it is fixed and passes inspection. But bear in mind that not all vehicles with salvage titles can be fixed up.

When this happens, a car is deemed “non-repairable,” which means you may only use its parts. Looking at the color of the title is a simple way to tell what kind of car you have:

  1. Title: Green – Clean
  2. Orange – Rebuilt Title 
  3. Blue – Salvage Title

Can You Get Auto Insurance With a Rebuilt or Salvage Title?

Because a salvage title vehicle is not deemed roadworthy, you cannot insure it. You can restore your car, though, unless your insurance provider says it can’t be fixed. When it successfully completes the state-mandated inspections and is insured, it is labeled as a Rebuilt Salvage in this instance.

Your options for insurance coverage may be limited if the vehicle has a rebuilt title. Some carriers will not insure a vehicle with a salvage or rebuilt title, while others just offer liability protection.

Getting collision and full insurance is achievable even if the majority of insurance companies are reluctant to issue a full coverage policy. However, there is a cost difference between higher premiums and potentially smaller pay-outs in the event of an accident.

Four Steps to Get Auto Insurance With a Rebuilt or Salvage Title

It is frequently more difficult to insure an automobile with a salvage or rebuilt title than it is to do so for one with a clear title. The following actions can make the procedure simpler.

1. Secure a Rebuilt Title

Keep in mind that a vehicle with a rebuilt title can be insured but one with a salvage title cannot. The only use for your car would then be as spare parts if the damage was severe enough for your insurance company to declare it unfixable.

2. Certified Mechanic’s Statement

Before seeking to obtain auto insurance discounts for a rebuilt vehicle, it is essential to have a secondary check carried out by a qualified mechanic. This step makes sure that any serious problems left over from the restoration procedure are found as soon as possible.

Before judging your car roadworthy, the majority of insurance providers will also demand a second evaluation.

3. Figure Out Insurance Options Available to You

When looking for coverage for a car with a rebuilt title, you could have fewer possibilities. Knowing which auto insurance providers cover salvage or rebuilt titles are important because some carriers outright refuse to insure these kinds of vehicles.

Some insurers are reluctant to provide comprehensive insurance to vehicles with rebuilt titles because it might be challenging to tell whether losses were brought on by a recent occurrence or were pre-existing. Additionally, some suppliers charge more, raising the price by up to 20%.

4. Compare Quotes

To get the finest coverage accessible to you, make sure to obtain quotes from at least three different vehicle insurance providers. This stage is especially crucial when insuring a car with a rebuilt title because your alternatives will probably be somewhat constrained.

Is Insuring A Car With A Rebuilt Title More Expensive?

You’ll probably pay a higher insurance rate for the same coverage on a car with a rebuilt title than you would for a car that hasn’t been salvaged and rebuilt. Gusner claims that this is in part due to the lack of businesses offering this coverage. Rates may be higher when there is less competition.

It’s also important to keep in mind that if your automobile has a rebuilt title and is totaled, your insurance carrier may not pay out much for your complete or collision claim because payouts are often determined by the value of the car, which may be lower because of the rebuilt title.

Which Insurance Providers Offer Rebuilt Title Coverage?

Root and General Insurance are two companies that offer coverage for vehicles with rebuilt titles. According to, The Hartford, 21st Century, Infinity, Omni, and Progressive may also provide coverage for these automobiles.

Remember that some of these providers might in some states provide coverage for vehicles with rebuilt titles but not in others. You’ll need to get in touch with the firm or an insurance representative to find out for sure whether these vehicle insurance companies provide insurance for rebuilt titles in your state.

Be sure to contact your state’s transportation department to learn about state regulations if you’re thinking about purchasing a vehicle with a rebuilt title. To ensure that the automobile was fixed correctly and is safe to drive, you might also wish to purchase a vehicle history record and have the vehicle inspected yourself. 

Ask your auto insurance provider if it covers rebuilt vehicles or if you’ll need to locate another type of coverage.

It’s crucial to search about and compare insurance estimates, just as when purchasing insurance coverage for a vehicle with a clear title. By doing this, you may be able to find solutions that are fairly priced, particularly if you only need liability insurance for the car.

How to Insure a Car with a Rebuilt or Salvage Title was last updated September 2nd, 2022 by Lokesh Jaral