A salvage title is typically issued on a vehicle damaged and found to exceed its fair market value or is declared a total loss by an insurance company or other jurisdiction sound body. Some states also use salvage titles to identify stolen vehicles.

It can be difficult to obtain insurance on a vehicle with a salvage title. In some states the vehicle must be worked on become roadworthy after receiving a salvage title. When the car is deemed ready for the roads again it is then given a rebuilt title.

Other states will allow a salvage title vehicle on the road if it is shown to be mechanically sound. Due to the previous condition of the car, many insurance companies will not insure a vehicle with a salvage title or if they do, it is only for liability and not for physical coverage (collision and comprehensive).

So if you can find an insurer for a vehicle with a salvage title, the recommendation is to get the state mandatory insurance on it and see if there are any optional coverages available to you. If there are, you will have to determine if the value of the car is worth the costs of these coverages.