The definition of a rebuilt title can differ depending upon the state you live in and laws specific to that state. This is a general definition (used by CarFax and others that report a vehicle's history) for a rebuilt title.

A "rebuilt title" is placed upon a rebuilt or reconstructed vehicle, which previously was a salvage vehicle but has now been repaired and restored to operation. These vehicles are often severely damaged before they are rebuilt and refurbished parts are typically used during reconstruction. In most states, an inspection of the vehicle is required before the vehicle is allowed to return to the road.

CarInsurance.com can offer an insurance policy on salvage titles through their carrier, Progressive. Get a quote today to see how much insurance will be for a rebuilt title car.

Normally when an insurance company has declared a car as a total loss, it becomes a "salvage vehicle" and CANNOT be driven on the highways or have a valid license plate. It can be sold ("AS IS") to an automobile rebuilder to be used either for parts or to be restored ("rebuilt"). If restored, it must be inspected and ultimately a "rebuilt title" will be issued for the vehicle. A rebuilt vehicle with a rebuilt title CAN be driven on the highways. The guidelines for getting a rebuilt title vary by state.

Florida requires a vehicle to have a salvage title if the insurance company declared the vehicle a total loss. These titles generally indicate whether the vehicle is "rebuildable" (can be repaired and driven) or "not rebuildable" (must be sold for parts). Other states notate the vehicle's title when the estimate of damages reaches a certain percentage of the vehicle's retail value (New York and Louisiana, designate it at 75 percent). For example in Georgia, the Department of Revenue notes that anyone who purchases a salvage or wrecked motor vehicle for the purpose of restoring or rebuilding it must be licensed as a re-builder.

If a Georgia title is required, any one who rebuilds or repairs a salvage vehicle is required to apply for a “rebuilt title”. An inspection of the vehicle is also required once the vehicle has been restored, but the vehicle does not have to be painted under this requirement.

A rebuilt vehicle must pass an inspection by this Department's Inspection Unit of Motor Vehicle Division (MVD) before a Georgia title (when a Georgia title is required) and/or license plate can be issued.

In Nevada, vehicles that have had certain repairs must be titled as Rebuilt even if they do not meet the definition of a salvage vehicle. This applies to any vehicle that has had one or more of the following major components replaced:

• Cowl assembly;
• Rear clip assembly;
• Roof assembly;
• Floor pan assembly;
• Conventional frame coupled with one additional major component
• Complete front inner structure for a uni-body

A licensed garage or body shop and the DMV using the Certificate of Inspection for Rebuilt Vehicles (Not Salvage) must inspect these vehicles. The existing title must be surrendered to the DMV, which will issue a title branded “rebuilt”.

Before purchasing a rebuilt item, it is generally recommended to have it thoroughly checked out by your own mechanic. You also should check to see if the car can be insured since many insurance companies underwriting rules do not allow them to write policies for cars with salvage or rebuilt titles.