Insuring Your Salvage Vehicle: Which Auto Insurance Companies?

If your car has been declared a total loss, it may be issued a salvage title. A car with a salvage title can’t be insured because it’s generally illegal to drive on the road. However, if you have the car rebuilt and your state transportation agency issues it a rebuilt title, you might be able to get auto insurance. Some insurance companies that offer coverage for rebuilt titles include Progressive, Nationwide, Kemper, State Farm, Mercury, and Farmers.

Salvage vehicles can be insured if they are rebuilt

Salvage vehicles can be insured, but only if they are rebuilt and issued with a rebuilt title. A salvage title car is one that has been deemed a total loss by an insurance company, usually because the cost of repairing the car exceeds its value. Once a car is declared a total loss, it's usually destined for the scrapyard. However, if the owner decides to repair and rebuild the car, it can be issued with a rebuilt title and insured.

Getting a Rebuilt Title

To get a rebuilt title, a salvage vehicle must be repaired and pass a state-required inspection by a certified mechanic. The inspection process varies by state, but it typically involves checking that the vehicle is roadworthy and that all necessary repairs have been made. Some states may also require the owner to provide documentation, such as repair estimates and receipts.

Insuring a Rebuilt Salvage Vehicle

Once a rebuilt title has been obtained, the vehicle can be insured. However, not all insurance companies offer coverage for rebuilt salvage vehicles, and those that do may have limited coverage options and higher premiums. Most insurance companies offer liability insurance for rebuilt salvage vehicles, but full coverage can be more challenging to obtain. This is because it can be difficult to determine whether any damage was caused by a new incident or was pre-existing.

Insurance Companies that Offer Coverage for Rebuilt Salvage Vehicles

Some insurance companies that offer coverage for rebuilt salvage vehicles include State Farm, Geico, Progressive, Allstate, and Mercury. However, it's important to note that their policies may have restrictions, and coverage options may vary by state. It's always a good idea to shop around and compare quotes from multiple insurance providers to find the best coverage for your needs.

Liability insurance is usually available for rebuilt vehicles

Once a vehicle has been declared a total loss by an insurance company, it will be issued a salvage certificate, which means it cannot be registered or driven on public roads. If the vehicle is rebuilt and passes an inspection, it can then be issued a rebuilt title. At this point, it may be possible to insure the vehicle.

It's important to note that not all insurance companies will offer coverage for rebuilt vehicles, and those that do may have limited coverage options. Liability insurance is typically available for these vehicles, but full-coverage policies may be more difficult to obtain. This is because it can be challenging to assign an accurate value to a rebuilt vehicle, and insurers may struggle to determine whether damages were pre-existing or the result of a new incident.

As a result, insurance rates for rebuilt vehicles are often higher than for vehicles with clean titles. It's recommended to shop around and compare quotes from multiple companies to find the best coverage options for a rebuilt vehicle.

Full coverage for rebuilt vehicles is rare but possible

Full Coverage for Rebuilt Vehicles: Rare but Possible

A car with a salvage title is one that has sustained enough damage that the cost to repair it exceeds its value, and it is thus "totalled". A salvage title car that has been repaired and is roadworthy is given a rebuilt title.

While most insurance companies offer liability insurance for rebuilt vehicles, full coverage is harder to come by. This is because it is challenging to assign an accurate value to a rebuilt salvage title car, and insurers may struggle to determine whether damage was pre-existing or caused by a particular incident. As a result, insurers often assume that rebuilt vehicles will result in more insurance claims.

However, full coverage for rebuilt vehicles is possible, though it may require some shopping around. State Farm and Geico, for example, offer full-coverage insurance for rebuilt title cars. Progressive, Allstate, and Mercury also offer policies for rebuilt title cars, but there may be restrictions on comprehensive and collision coverage.

If you're looking for full coverage for a rebuilt vehicle, you'll need to contact several insurers and provide detailed information about the vehicle's history. You'll also need to be prepared for higher rates, as insurers that cater to high-risk drivers and vehicles tend to have higher rates.

To get a quote and buy a policy, you'll typically need to provide the following:

• A certified mechanic's statement verifying that the car is in good working order
• Photos and/or videos of your car, acting as "before" images that the insurer can compare to in case of a claim
• Your car's original repair estimate, detailing the damages and improvements made to the vehicle

Rebuilt vehicles may be more expensive to insure

Once a vehicle is declared a total loss, it will be issued a salvage certificate, meaning it cannot be registered or driven on public roads. However, if the vehicle is sufficiently repaired and rebuilt, it can be issued a rebuilt title, which means it meets state requirements for being roadworthy and can be insured.

Higher Insurance Rates for Rebuilt Vehicles

Insurance companies may charge higher rates for rebuilt vehicles because they are seen as more likely to need repairs and be involved in accidents. The more damage a car has sustained, the more likely it is to have future mechanical issues, which increases the risk for insurance companies. As a result, they may try to offset this risk by charging higher rates.

Limited Coverage Options for Rebuilt Vehicles

Insurance companies may be hesitant to offer full-coverage policies for rebuilt vehicles. It can be challenging to determine the value of a rebuilt vehicle, and insurers may struggle to identify whether damage was caused by a particular incident or already existed before the rebuild. As a result, it is often easier to obtain liability insurance for a rebuilt vehicle, which only covers damage to other vehicles or property in the event of an accident.

Factors Affecting Rebuilt Title Insurance Premiums

In addition to the vehicle's history and condition, other factors can influence the cost of rebuilt title insurance. These include the driver's record, with higher rates for those with traffic violations or at-fault accidents, and the coverage requirements, as some states have higher minimums for liability coverage.

Ways to Save on Rebuilt Title Insurance

To save money on rebuilt title insurance, it is recommended to shop around and compare quotes from multiple insurance companies. It is also suggested to only purchase the necessary coverage and maintain a good driving record by completing defensive driving courses to qualify for discounts.

You should shop around for the best insurance quotes

Shopping for car insurance can be a taxing process. However, there are several steps you can take to ensure you find the best insurance quotes. Firstly, gather the necessary information, such as your personal details, vehicle information, and driving history. This will make it easier to obtain accurate quotes from multiple insurance companies. Next, decide on the level of coverage you need. Most states require a basic level of bodily injury and property damage liability coverage, but you may want to increase your liability coverage amounts or add additional coverages such as collision insurance, comprehensive insurance, or underinsured/uninsured motorist coverage.

Once you know what type of coverage you need, it's time to start shopping around. You can get quotes from insurance company websites, independent agents, or online comparison platforms. When comparing quotes, be sure to consider the costs, coverage limits, and available discounts. It's important to compare at least three to five providers to ensure you're getting the best deal. Keep in mind that some companies may offer lower rates if you bundle policies, drive less, or have a high credit score. Finally, don't forget to purchase your policy and cancel your old policy if you're switching providers.

When it comes to insuring a salvage vehicle, it's important to note that most insurance companies will not insure a car with a salvage title. A salvage title is given to a car that has been badly damaged and declared a total loss. If you repair and rebuild the car, it can receive a rebuilt title, which means it can be insured and driven on the road. However, even for rebuilt title cars, insurance companies may be hesitant to offer full coverage and may only provide liability insurance. Be prepared to compare quotes from multiple companies and consider reducing your coverage to liability-only to get the best rates.

Frequently asked questions