How much is car insurance for rebuilt and salvage title cars?
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UPDATED: Mar 13, 2020
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Car insurance for salvage title cars or vehicles with rebuilt titles can often be harder to find than car insurance for typical cars. The definition of a rebuilt or salvage title will depend on the laws of your state however there is a common definition most companies like Carfax use to identify a car whose title has been restored.
What is a Salvage Title Car?
Vehicles which have been destroyed or “written off” from a car accident are labeled as salvage title cars. Once a vehicle is declared a total loss or wrote–off by a car insurance company a formal notification is given to the Department of Motor Vehicles requesting the vehicle be issued a salvage title. Once a car has a salvage title attached the vehicle is no longer allowed to be operational resulting in denial of any license plates or vehicle registration tags.
What happens to a Salvage Car?
Salvage title cars are sold in “AS IS” condition and depending on the condition of the car the vehicle will either be broken up and sold for parts or rebuilt for resale. While any salvage title car can ultimately be restored and apply for a “rebuilt title” the inspection process is very tough and many states even restrict who can purchase salvage vehicles.
What is a Rebuilt Title?
Any vehicle which was previously destroyed and restored to operation will have a “rebuilt” title attached to the vehicle’s history. A rebuilt title is essentially a title issued to any salvaged vehicles that has been restored and meets the inspection standards of the state. These standards are very high for rebuilt cars and only a small percentage of salvage cars ever get a rebuilt title. Once a rebuilt title is issued however the vehicle can be issued new tags and driven and sold much like any other vehicle. Finding car insurance for a rebuilt title however is a little more difficult as not all car insurance companies offer auto insurance coverage on cars that have been rebuilt. Progressive and a few other big brand names do however car insurance comparison is very important with rebuilt cars to find the best rates.
Are all Salvage cars rebuilt?
Most salvage cars get sold for parts however once a vehicle is issued a salvage title the state will check on the title whether the vehicle is rebuildable. Cars that are indicated as eligible to be rebuilt certainly can however if the salvage title does indicate this option then the only option for a new owner is to sell the car for parts.
Who can purchase salvage titled cars?
Eligibility to purchase a salvage titled car depends entirely on where you live. Some states allow anyone to purchase a salvage vehicle whereas other states (like Georgia) require a company to be licensed especially if they plan on rebuilding the car.
Why is a Title Check Important?
Purchasing a car is a big investment and you certainly want what you are expecting to purchase. Any online title check service such as Carfax allows you to run a vehicle’s VIN number and get a history of the car including previous owners, accident history, repair work and more. Its not unusual to purchase a car with negative history not showing up on any kind of vehicle check so research as much you can about the vehicle before purchasing. Rebuilt cars are especially tough to get car insurance for and may pose some safety concerns to drivers who are not familiar with the restoration process.
Need Car Insurance for a Rebuilt Title Car?
The best way to find car insurance for a rebuilt title car is to copy the VIN number down and start comparing quotes based on the specific car you are purchasing. Always provide the VIN number to a car insurance company and request a quote specifically on this vehicle. Mention the car is rebuilt and ask if they insure cars with rebuilt titles. You may strike out a few times but with the right car insurance comparison search you should be able to find affordable rates.
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