Can I get auto insurance for a rebuilt title?

When a car gets damaged to the point where it would cost more to repair than replace, insurance companies will declare the vehicle a total loss. When this happens, the car’s original title gets replaced with a salvage title.

You can’t drive a car with a salvage title on a public road nor insure it since no reputable company will cover a salvage vehicle. However, there are advantages to buying a car with a salvage title.

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For example, salvage cars are much cheaper than their clean title counterparts and are a great way to find spare parts or buy a car to work on as a hobby.

However, cars with a salvage title must be repaired and pass an inspection before driving them. After passing a state inspection, you get issued a rebuilt or rebranded title, allowing you to drive the car again.

Although they’re initially cheaper to buy, salvage cars can be expensive to own. Salvage title cars come with many expenses, from costly repairs to higher car insurance rates. While there are plenty of ways to find cheap auto insurance rates, there will be a lot of work that will go into a salvage car, so it’s better to be mindful of the long-term price tag as well. 

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Read on to learn what you need in order to get car insurance for a rebuilt title, then compare rates to find the best price possible for coverage.

What is a rebuilt title?

Insurance companies will declare a car a total loss for several reasons. While people usually consider car accidents the primary cause, other reasons include vandalism, animal contact, weather damage, fire, and theft.

Despite the term’s implications, a total loss declaration doesn’t mean the car is useless. Insurance companies declare a car totaled when it reaches a specific damage threshold. Every company is different, but most report cars totaled when the cost of repairing damage reaches 75 to 90% of its total value.

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If your car gets totaled — and you have the right insurance — the company will issue a payment for the vehicle’s value. Then, the company usually sells the car to a mechanic or scrap yard to recoup some of its losses.

Some salvage cars can get repaired to the point where they’re eligible to receive a rebuilt title. State laws differ on how to get a rebuilt title, but it usually requires the car to pass an examination. Once the rebuilt title gets issued, it’s street-legal again.

Rebuilt titles aren’t worse than clean titles — they simply mean the car was once totaled, declared salvage, and repaired. You might hear the terms salvage and rebuilt title used interchangeably, but they aren’t the same.

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An easy way to tell which type of title your car has is by looking at the color of the title’s paper:

• Green titles are clean
• Blue titles are salvaged
• Orange titles are rebuilt

If you’re confused about whether you have a rebuilt or salvage title, there’s no need to worry. An insurance company representative can help you determine what you have and find the right coverage for your car.

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Can you get insurance for a car with a rebuilt title?

Since a car with a rebuilt title is legal to drive, most insurance companies will offer you insurance. However, that’s not always the case — some companies refuse to insure a rebuilt or salvage title, so check with an insurance company representative.

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Usually, the only insurance you can buy for a rebuilt car is a liability plan, and most states require a minimum level of liability insurance to drive legally. Since rebuilt titles are legal to drive, most companies will offer the insurance you need to stay legal.

While you can save money by buying a rebuilt car, your insurance rates will likely be higher. Car insurance companies charge more for rebuilt titles because they consider them a higher risk.

Due to this risk, you’ll likely receive a smaller payout if you file a claim. Additionally, a rebuilt car is worth less than a car with a clean title, which will also lower any payouts.

Can you get full coverage insurance on a rebuilt title?

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Finding liability coverage for rebuilt cars is relatively easy, but buying more insurance can be difficult. Simply put, most insurance companies only sell liability policies for rebuilt titles. 

Full coverage for a rebuilt title will likely be expensive if you can find a company that will sell it to you. The reason full coverage for a rebuilt title is scarce is that it can be difficult to determine your vehicle’s exact value, and proving an accident caused car damage after filing a claim can be challenging.

There also could be undiscovered vehicle damage that shows up later on, which could cause serious or dangerous problems.

This danger is why so many companies are hesitant to offer anything more than liability insurance to a rebuilt car. Companies assume that a vehicle with a rebuilt title is more likely to file a claim than cars with clean titles.

What is the best insurance for rebuilt titles?

Although they’re legal to drive, finding a company to give you a reasonable price for an insurance policy on a rebuilt title can be challenging. That’s especially true for finding full coverage.

If you already have a car insurance policy, you can ask an insurance company representative to add your rebuilt car to the plan. If you need new insurance, the following companies are excellent places to start looking:

• Allstate
• GEICO
• MetLife
• Progressive (full coverage in some cases)
• State Farm
• Farmers

Each company has different qualifications a car must meet before selling you an insurance policy. For example, GEICO rebuilt title insurance requires your vehicle to pass further inspections. Other companies have membership requirements — for example, you can buy USAA rebuilt title insurance, but only if you’re an active or retired military member or their family.

Still, others have very few requirements. If you buy State Farm rebuilt title insurance, your car only needs to pass state inspections.

Whichever company you choose, it’s essential to compare quotes to find the best price.

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How do you get insurance for rebuilt titles?

Getting insurance on a rebuilt vehicle might sound confusing, but it’s not as complicated as you think. While it certainly takes more effort than a car with a clean title, the process is worthwhile when driving your vehicle.

To get insurance on a rebuilt car, take the following steps:

• Make sure you have the correct title. You can’t drive a salvage title car, so ensure you have the correct title before getting insurance.
• Get a certified mechanic’s statement. This statement certifies that a mechanic combed the vehicle for damage and found nothing to worry about. It makes an insurance company more confident in giving you coverage.
• Shop for coverage. As previously stated, not all companies offer insurance for a salvage car. If you want full coverage, you’ll have to search hard.
• Compare quotes. According to J.D. Power, rebuilt title insurance costs up to 20% more than insurance for a clean car. To save money, shop for as many companies as possible.

It might sound difficult to get through all these steps, but you don’t have to do it alone. Getting quotes online is simple — once you know which company you want to buy from, an insurance company representative will help you with the details.

Find the Best Insurance for Rebuilt Titles

Buying a car with a rebuilt title is an excellent opportunity to buy an inexpensive car, and there’s no reason not to buy one. Even though rebuilt title insurance rates are more expensive, you shouldn’t let that get in your way if there’s a rebuilt car you want.

Once your salvage car passes inspection and receives a rebuilt title, you’re ready to shop for car insurance. Compare rates with as many companies as possible to find the best price.