How Your Rebuilt Title Car Affects Your Ability to Obtain Insurance

Rebuilt Title Car Insurance

Have you purchased a rebuilt title car or are you planning to? Are you concerned about getting car insurance online coverage for your rebuilt title? Rebuilt title cars can obtain insurance but at a tight threshold. If your vehicle has been totalled or deemed an absolute loss, it may be called a salvage title. Generally, vehicles with salvage titles can’t be insured simply because it’s illegal to drive salvage title cars

However, that doesn’t mean that it’s over for your vehicle. Salvage titles can be restored and repaired hence making it a rebuilt title. Just because a vehicle has been written off as of no use doesn’t mean that it’s not able to function again

You may be confused about salvage and rebuilt titles; this article explains more on them and how they affect online car insurance;

What Is a Salvage Title?

A salvage title car is one that has been deemed a total loss and written off. This basically implies that its insurance provider looked at the damage to the car and assessed that the repair costs were much higher than the car’s total value making it not worth it

Most people opt for salvage title cars because they hold sentimental value to them and they couldn’t see themselves driving anything else while others simply choose it because it’s all that they can afford or in other cases, may afford others but would only want a cheap car

Insurance companies declare a car, salvage after a crash, natural disaster or if it has been stolen and later recovered. Different states have different laws on when a car is considered a total loss. Some, when the repair costs 50% of the car’s value while others are up to 100%.

22 states do not use a percentage but rather a total loss formula.  Each insurance company will determine the cost of repair and the value of the scraped car. If the results equals or exceed the actual cash value of your car the insurance company might not repair it and could deem it a total loss.

Since the car insurance company is using the formula each insure and the value input could be different, the final result to repair or not could be different between different insurance companies.




Alabama 75%
Alaska TLF
Arizona TLF
Arkansas 70%
California TLF
Colorado 100%
Connecticut TLF
Delaware TLF
Florida 80%
Georgia TLF
Hawaii TLF
Idaho TLF
Illinois TLF
Indiana 70%
Iowa 70%
Kansas 75%
Kentucky 75%
Louisiana 75%
Maine TLF
Maryland 75%
Massachusetts TLF
Michigan 75%
Minnesota 70%
Mississippi TLF
Missouri 80%
Montana TLF
Nebraska 75%
Nevada 65%
New Hampshire 75%
New Jersey TLF
New Mexico TLF
New York 75%
North Carolina 75%
North Dakota 75%
Ohio TLF
Oklahoma 60%
Oregon 80%
Pennsylvania TLF
Rhode Island TLF
South Carolina 75%
South Dakota TLF
Tennessee 75%
Texas 100%
Utah TLF
Vermont TLF
Virginia 75%
Washington TLF
West Virginia 75%
Wisconsin 70%
Wyoming  75%

For example if you drive a 2015 Honda Civic LX, automatic with standard features according to BBB the trade in value is around $8,000.  Based on the state you reside in the car can be deemed a total loss or not.  In Iowa the insurance can apply for a salvage title as the state requirement is if the damage is at least 50 percent of the current value of the car.  If you live in the Rocky mountain state of Colorado your damage must be equal to 100 percent of the car value

Cars with salvage titles can’t be driven unless they are repaired and rebuilt to roadworthy conditions

What Is a Rebuilt Title?

A rebuilt title is one that has been replaced and rebuilt to roadworthy conditions after it was deemed a total loss. It, therefore, means that the car has been repaired to the point it is legal to be driven again

Before receiving a rebuilt title, it must go through a series of tests to determine whether it’s safe to be driven in some states. The buyer must also be provided with the previous history of the vehicle


Repairing a car to get rebuilt title

Can a Rebuilt Car Be Insured?

A rebuilt car can be insured, however, it can also be bad for insurance since it sends red flags to insurance companies that your car is risky to insure. Due to its history it may lead to more issues in the future that will cause an insurance claim being filed

Cars with salvage titles can’t be insured because they are illegal to be driven on the road. Rebuilt titles, on the other hand, can be insured and some insurance carriers provide coverages for these vehicles

However, the ones who offer coverage may sometimes be limited and full coverage may not be possible at times

What Is Required by Insurance Companies?

A rebuilt title car has to pass state-mandated inspections before its deemed safe to be driven on the road. Hence the vehicle has to pass inspection from a mechanic to qualify for insurance coverage

Some insurance companies may ask you to have your vehicle appraised. You need to also provide the insurance carrier with your driver’s license, copy of your title, proof of vehicle registration, Vehicle Identification Number (VIN) or photos of the vehicle

Is It Possible to Get Full Coverage on a Rebuilt Title Car?

Most insurance companies provide limited insurance policies like liability insurance only, for rebuilt titles. You may think that it’s difficult to find a company that provides comprehensive and collision coverages, it’s however not impossible

The liability insurance protects you in times where you’re at fault in an accident and cause injury to a person or damage to their property

Therefore to find the best insurance providers for your rebuilt titles, you need to do more research by shopping around while comparing as many quotes as possible to get cheap car insurance online

What is the Costs to Insure A Rebuilt Title Car?

If you have a rebuilt vehicle and you want to insure it, you’ll likely pay a higher premium compared to other vehicles that have neither been salvaged or rebuilt. This is because few companies provide coverage to these vehicles hence less competition thereby an increase in the prices

It also depends on the provider that you choose as some insure high-risk vehicles but come with high rates compared to other providers that insure vehicles with clean titles

Therefore to get a good price for insurance, you have to shop around and compare the rates with those that have a clean title

Companies That Cover Rebuilt Titles

Some large insurance carriers provide limited coverage such as liability coverage for rebuilt titles, however, it depends on the state you live in, the vehicle and other factors that affect car insurance online. These carriers include Geico, StateFarm, Progressive and Allstate

Other companies include Insurance Navy, Root, The Hartford, 21st Century, Omni and Safeco among others. You can’t truly be certain without contacting the insurance provider or agent on your own to see if they cover rebuilt titles in your state

Bottom Line

Purchasing a rebuilt title car can save you lots of money as it is cheaper than new and used vehicles. However, when buying these vehicles, you have to be cautious and get one at a good deal. Getting insurance for a rebuilt title can be hard although not impossible and you should shop around to get auto insurance for your vehicle. When looking for good insurance, the above should be put into consideration


Quotes Pilot content is not written by a licensed  insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for your situation