If you’re hunting for an affordable car, you might stumble upon vehicles with a salvage or rebuilt title insurance. These cars can save you money upfront, but insuring them isn’t always straightforward. Auto insurance for salvage or rebuilt title insurance vehicles often comes with higher costs and limited coverage. However, with the right approach, you can still find the best insurance policy for your needs.
In this guide, we’ll break down everything you need to know about rebuilt title insurance, including costs, coverage options, and how to secure the best deal.
What is a Salvage Title, and How Does It Affect Insurance?
A salvage title is issued when an insurance company declares a car a total loss due to an accident, flood, theft, or other significant damage. Once a vehicle is given a salvage title, it cannot be legally driven until it has been repaired and inspected.
Rebuilt Title vs. Salvage Title
- Salvage Title: Given to a car that has been deemed a total loss and is no longer roadworthy.
- Rebuilt Title: Issued after a salvage vehicle has been repaired and passed a state-mandated inspection, making it legal to drive again.
If you’re considering buying or insuring a car with a rebuilt title, understanding the difference is essential.
Can You Get Insurance for a Rebuilt Title Vehicle?
Yes, but it’s more complicated than insuring a clean-title car. Some insurers refuse to cover rebuilt title vehicles, while others offer only liability insurance, meaning you won’t get coverage for damage to your own car.
Challenges with Rebuilt Title Insurance
- Higher premiums – Insurers consider rebuilt cars riskier.
- Limited coverage – Many providers only offer liability insurance.
- Lower payout values – If you file a claim, the car’s resale value is often significantly lower.
How Much Does Rebuilt Title Insurance Cost?
On average, insurance for a rebuilt title insurance costs 10-30% more than a policy for a clean-title car. However, the exact amount depends on:
- The car’s condition – Quality of repairs and inspection history.
- Insurance provider – Some insurers charge higher rates, while others won’t cover rebuilt vehicles at all.
- State regulations – Some states have stricter insurance requirements.
- Driving history – Your past record also impacts rates.
A standard auto insurance policy in the U.S. costs around $640 per year, but rebuilt title insurance will likely be higher due to the increased risk.
How to Insure a Rebuilt Title Car
To improve your chances of getting coverage at a reasonable rate, follow these steps:
- Get a Thorough Inspection – Ensure the car has been repaired properly and passes all safety requirements.
- Gather Documentation – Keep detailed records of the repairs, including receipts and inspection reports.
- Compare Insurance Quotes – Not all insurers cover rebuilt vehicles, so shop around.
- Consider an Adjuster’s Evaluation – Some companies require a professional assessment before offering coverage.
Does a Rebuilt Title Affect Insurance?
Yes. A rebuilt title insurance can make insurance more expensive and limit your coverage options.
Key Effects:
- Higher rates – Since rebuilt cars pose higher risks.
- Limited coverage options – Many insurers won’t offer full coverage.
- Lower claim payouts – If your car is totaled again, expect a smaller settlement.
Can You File a Claim on a Rebuilt Title Car?
Yes, but there are limitations:
- Liability coverage is available, but some insurers don’t offer comprehensive or collision coverage.
- Claim payouts are often lower than expected due to depreciation and previous damage.
Before buying a rebuilt car, ask yourself: Is the insurance cost and risk worth the savings on the car’s purchase price?
Best Insurance Companies for Rebuilt Title Vehicles
Some insurers specialize in covering rebuilt cars. Here are a few providers that might offer coverage:
- Progressive – Offers liability and sometimes full coverage for rebuilt cars.
- GEICO – Provides coverage in some states but often at higher rates.
- State Farm – May cover rebuilt vehicles but varies by location.
- Allstate – Limited availability, so check with local agents.
- The Hartford – Specializes in unique insurance cases.
If you’re struggling to find rebuilt title insurance, check with local or specialty insurers that focus on salvage vehicle coverage.
Tips for Buying a Salvage or Rebuilt Title Car
If you’re considering purchasing a rebuilt or salvage title vehicle, keep these key tips in mind:
- Understand your state’s laws on salvage and rebuilt titles.
- Check the vehicle history report (Carfax, AutoCheck) to verify past damage.
- Have the car inspected by a trusted mechanic before purchasing.
- Get insurance quotes first to ensure you can secure coverage.
Final Thoughts
Insuring a rebuilt title or salvage car isn’t impossible, but it does require extra effort. Insurance costs are higher, coverage options are limited, and payouts may be lower if you file a claim. However, with the right approach—thorough inspections, proper documentation, and shopping around—you can still find affordable insurance for a rebuilt title car.
If you’re wondering “Does a rebuilt title increase insurance costs?” or “Can you get full coverage on a salvage title?”, the answer depends on your insurer, location, and the car’s condition. Be prepared for challenges, but don’t let that stop you from getting a good deal!
Want to know more about other insurances, Read our latest articles.
