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Q

If I purchase a car with a 'rebuilt' title from a dealer, and the car is involved in an accident and 'totaled' does the insurance company pay a lesser value on the claim compared to a car that doesn't have a 'rebuilt' title? Is the insurance rate lesser on rebuilt auto titles?


A

You may have a hard time finding someone to insure your vehicle for physical damage, which is the only coverage your question relates. Try a quote with us through Progressive.

Many insurance companies will not insure vehicles with 'rebuilt' or 'salvage' on the title. If you find a company who will insure it for comprehensive and collision coverages, if your vehicle is "totaled" in an accident. I believe they will pay a lesser value than a vehicle that does not have "rebuilt" or "salvage" on the title. This is the reason most insurance companies won't insure these vehicles. You may be able to get a classic car insurance company to give you insurance for a "stated amount."

If it is not a stated value policy, the insurance company will pay the vehicle's "actual cash value" (minus the deductible you choose). This takes the vehicle's depreciation into account.

You can obtain an auto insurance quote for a collector car with our partner Safeco and our partner Progressive will write a policy with a salvage title.



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11 Responses to "If I purchase a car with a 'rebuilt' title from a dealer, and the car is involved in an accident and 'totaled' does the insurance company pay a lesser value on the claim compared to a car that doesn't have a 'rebuilt' title? Is the insurance rate lesser on rebuilt auto titles?"
  1. Lisa Guerra

    I bought a salvaged vehicle and was recently in an accident that wasn't my fault. I paid $3,500 for the vehicle. The insurance company is only offering me $2,000 because they said it is a salvaged vehicle. Is there any way I can get the amount I paid for the vehicle? I only had it 2 months.

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  2. marcus

    You can get insurance, even full coverage, on rebuilt titles. I have personally bought rebuilt and sold over 100 cars in the past 3 years. Insurance and selling them was never a problem. People have to understand that even though cars are being bought by rebuilders at auction and being resold these cars are still very expensive to buy and rebuild.

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  3. Visitor

    I never had a problem getting insurance.

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  4. Visitor

    I just bought an 2003 Infiniti M45 with "Rebuilt Title" and State Farm insured the vehicle with no problem.

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  5. Anonymous

    I purchased the car with rebuilt title and paid much less than I would for the same car with clean title. I did not have any problems getting insurance through State Farm. I did not have any problems with the car and it drives and runs great.

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  6. Anonymous

    i didnt know what rebuilt title was, know i understand, thank u

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  7. Anonymous

    I was looking at purchasing a car for my 16 y/o and the guy said it had a "rebuilt title" I did not know what this meant...I almost wrote him a check..I am so glad I googled your website! Thanks so much!

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  8. Anonymous

    Thx!

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  9. Anonymous

    I "was" interested in a 2005 Nissan Maxima and found out that is was a rebuilt title on it and the seller said the only thing that he had to replace was the bumper. I have had worse wrecks than that and I didn't have to get a "rebuit title" for my car. GREAT INFO THANKS GOOGLE and CarInsurance.com!

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  10. Anonymous

    looking at used cars

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  11. Anonymous

    I was looking on google for rebuilt title info. and found this. I hadnt even thought about insurability yet. Glad I saw this.

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