Can You Get Insurance for a Salvage Title Car?

What Is a Salvage Title Car?

A salvage title car is a vehicle that's been declared a total loss by the insurance company following an incident. In other words, the cost to repair the vehicle would exceed its value. This may happen after a severe accident, natural disaster, fire, vandalism or other event that causes significant damage.

It's typically illegal to drive a car with a salvage title, but not everyone is ready to send a car that's been totaled to the junkyard. Depending on the extent of the damage, it may be possible to get a salvage title car back on the road, but you'll need to do more than just rebuild it.

It must pass a safety inspection, and if you live in a state that requires car insurance, which almost all do, you need to get adequate coverage.

Because the process for making a car roadworthy after it's been declared a total loss varies, it's best to check your state's laws so you know what's required.

Learn more: How Much Car Insurance Do I Need?

Can a Salvage Title Car Be Insured?

You can't insure a car with a salvage title. However, if the car can be repaired, you make the necessary repairs and it passes a safety inspection, you may be able to get a new title indicating that the vehicle has been rebuilt and can be driven legally. Depending on where you live, the new title may say rebuilt salvage, reconstructed, restored salvage or your state may use another name.

After a salvage car has been re-titled, you may be able to get coverage for it. However, you shouldn't assume that you'll automatically be able to get insurance—even after the vehicle is rebuilt. Not all insurance companies provide coverage for cars that were previously declared a total loss, and those that do may not offer certain types of coverage on rebuilt vehicles.

What Coverage Is Available for Rebuilt Title Cars?

Insurers that cover cars with rebuilt titles may be willing to provide liability, uninsured motorist, personal injury protection (PIP) and medical payments coverage (MedPay). However, you'll likely have a more difficult time obtaining coverage for physical damage, such as comprehensive and collision.

If you're thinking about rebuilding a car that was declared a total loss, it may be a good idea to check with your insurer to find out what types of coverage—if any—they would be willing to provide before making repairs.

Learn more: What Are the Types of Car Insurance?

How to Insure a Rebuilt Salvage Title Car

Here's a brief overview of the steps you may need to take to insure a salvage title car. However, requirements for repairing and getting a salvaged car re-titled and insured vary by state. So, it's crucial that you verify your state's requirements before making any repairs. Otherwise, you may not have what you need to drive it legally.

1. Document the Damage

Your state may require you to document the damage the vehicle sustained to apply for a rebuilt title. Be sure to take photos both before and after the repairs are made from multiple angles, including front, back and side views.

2. Obtain an Inspection Statement

After the car is rebuilt, it must pass a safety inspection before you can legally drive it. To complete the inspection, you may need to submit various documents, including:

• An application
• The salvage title in your name
• Photos of the vehicle before and after repairs were made
• Bill of sale for each major part that was used to rebuild the vehicle
• Vehicle identification numbers (VIN) from the vehicles of used parts
• Work orders for repairs

The information you need to provide may vary based on where you live; confirm your state's requirements before beginning the repair process.

3. Apply for a Rebuilt Title

After your car passes inspection, you can typically apply for a rebuilt title through the department of motor vehicles in your state. If everything is in order, you should receive an updated title indicating the vehicle is roadworthy and can be driven legally.

4. Look for Coverage

With a rebuilt title, you can shop for insurance just as you would for a car that hadn't been totaled. However, finding coverage to fit your needs may not be easy since not all insurers are willing to cover a car with a rebuilt title. Shopping around may improve your chances of finding coverage that fits your needs.

How Much Does Rebuilt Salvage Title Car Insurance?

Rates vary by provider, but it could cost more to insure a car with a rebuilt salvage title because of its history of significant damage. Insurers don't just view certain drivers as high-risk; they view certain vehicles as high-risk too. Because rebuilt cars may have hidden damage that could increase the risk of accidents, insurance companies may increase rates to offset the added risk.

The Bottom Line

You can't insure a car with a salvage title, but it may be possible to insure one that's been repaired and passed a safety inspection after it was declared a total loss. Because many insurance companies aren't willing to insure vehicles that have been salvaged, you may need to work with a provider that specializes in high-risk insurance—and even then, there are no guarantees.

If you're planning to purchase a salvaged vehicle, it may be worth shopping for insurance before you buy the car to see if you can find a provider who's willing to cover you. Experian's car insurance comparison tool can make your task easier by providing quotes by top insurers in one place, allowing you to easily compare and save.