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- A salvage title means a car was declared a total loss; a rebuilt title means it’s been repaired and passed a state inspection, making it roadworthy again.
- Cars with rebuilt titles typically sell for 20% to 40% less than comparable clean-title vehicles, according to Kelley Blue Book.
- An estimated 20% to 30% of auto insurance companies don’t write policies for salvage or rebuilt title vehicles, according to David Suarez, former business development manager at Mercury Insurance.
- Many insurers limit rebuilt-title coverage to liability only. Comprehensive and collision coverage can be hard to find.
- Most states require a formal inspection before a salvage car can receive a rebuilt title and return to the road.
You can insure a salvage or rebuilt title car, but your options are narrower than with a clean title. Fewer companies write these policies, and those that do may limit you to liability-only coverage or charge higher premiums. Here’s what to know before you shop.
What is a salvage title?
A salvage title means an insurer declared the vehicle a total loss, typically when repair costs exceed 50% to 90% of the car’s value, depending on your state. That designation makes the car ineligible to be driven legally until it’s been repaired, inspected and retitled as a rebuilt vehicle.
The vehicle could have been totaled in an accident, damaged by hail or floods or stolen and recovered months later. If an older-model vehicle is involved in an accident, the insurance company is likely to total it rather than repair it simply because the labor involved in the repairs is expensive.
“Companies do it for economic reasons,” said David Suarez, former business development manager at Mercury Insurance.
What’s the difference between a salvage title and a rebuilt title?
Cars with salvage titles have been declared a total loss and can’t be driven legally. But once a salvage car has been repaired and passes an inspection from a state-approved salvage inspection operator, it can qualify for a rebuilt title. A vehicle with a rebuilt title can be registered, driven and sold.
However, it is common for people to mistakenly refer to rebuilt cars as salvage title cars, even though they are two distinct categories. Since many people use these terms interchangeably when discussing insurance for a salvage title car, we’re working under the presumption that it has been fixed and rebuilt.
Can I drive a car with a salvage title?
A car with a salvage title cannot be driven on the road legally, even if it still runs. However, depending on the severity of the damage, some of these cars can be repaired and rebuilt.
Many states will require you to have the vehicle inspected to ensure it is roadworthy. If the car has been salvaged or rebuilt, it receives a “branded” or rebuilt title.
Can I get insurance for a salvage title car?
Yes, you can. But be aware that not every car insurance company will insure salvage title vehicles. For instance, Travelers and Direct General are two companies that do not write policies for salvage cars. Carrier guidelines can change, so confirm availability directly when you shop.
Suarez estimated that 20% to 30% of auto insurance companies won’t write these policies. But he said that if you’re trying to insure a salvage vehicle following a natural disaster, it might be harder to get any coverage.
“Carriers tighten up on their desire to write salvage vehicle (policies),” Suarez said.
He says that car insurance companies are concerned after such events because unscrupulous car dealers may clean up the car so it looks presentable but not repair the damage.
How to insure a salvage or rebuilt title car
Getting coverage for a salvage or rebuilt title car means targeting insurers that specifically write these policies. Your best move is to gather your documentation first, then contact multiple insurers to compare quotes. Expect your options to lean toward liability coverage, and budget for slightly higher premiums.
- Research insurance companies: Not all insurance companies offer coverage for salvage or rebuilt title vehicles. Look for insurers that provide insurance for these types of vehicles.
- Gather necessary documents: Be prepared to provide documentation such as receipts or invoices for repairs, any inspection reports from a certified mechanic or state agency and photos of the vehicle post-repair.
- Compare insurance quotes: Once you have the necessary documents, contact multiple insurance companies to get quotes. Be honest about the vehicle’s title status and provide all the required information.
- Be prepared for a higher premium: Depending on the insurer, you may have limited coverage options. Some insurers may only offer liability coverage or charge higher premiums due to the vehicle’s history.
- Review your policy carefully: Once you choose an insurer, review the policy terms and conditions carefully to understand what is and isn’t covered.
Insurance for salvage and rebuilt title vehicles often comes with higher premiums, reflecting the increased risk the insurer assumes. Be sure to factor this into your budget.
What documentation do I need to get insurance for a salvage car?
To obtain auto insurance for a salvage or rebuilt title vehicle, you’ll need a copy of your title, current registration and VIN. Some insurance companies may also require an independent appraisal, a state inspection report or a mechanic’s statement confirming the vehicle is roadworthy. Having repair receipts and invoices ready speeds up the process and gives the insurer confidence in the quality of the work done.
How can I tell if it’s a salvage vehicle?
State laws require that the seller inform a buyer in writing that the vehicle they want to purchase is salvaged, Suarez says. Check the car’s vehicle identification number (VIN) or title to ensure you’re not unknowingly purchasing a salvage title car. The National Motor Vehicle Title Information System (NMVTIS) provides information on a vehicle’s condition or history. You can purchase those reports from several companies.
Use the National Insurance Crime Bureau’s VINCheck, a free lookup service for the public, to determine if a vehicle may have a record of an insurance theft claim and has not been recovered or has ever been reported as a salvage vehicle.
Will I pay extra for salvage title insurance?
Yes. Premiums on salvage or rebuilt title vehicles run higher, and the main reason is competition: fewer companies offer this coverage, so there’s less pressure on price.
It also depends on the company you choose. Companies that cater to high-risk drivers and are willing to insure rebuilt vehicles typically have much higher rates than companies that insure safe or standard-risk drivers and vehicles, meaning a car with a clean title and a driver with a clean driving record. Since non-standard companies take on more risk, their rates are generally higher than others.
Remember, auto insurance policies are written based on the vehicle’s year, make and model, among other factors.
“The car’s diminished value usually isn’t considered,” Suarez says.
So, if you buy a salvage 2018 Toyota Camry, you’ll pay the same amount for your car insurance as someone with a 2018 Toyota Camry that hasn’t been damaged.
Also, some carriers charge you extra for insurance, even though your vehicle is worth less than comparable cars.
Sophie’s tip
Before you decide whether to pursue full coverage on a rebuilt-title car, compare the annual premium cost against the vehicle’s actual market value. If the car is worth significantly less than a clean-title equivalent, the added cost of comprehensive and collision may not justify the payout ceiling you’d receive on a claim.
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What to look for when buying a vehicle with a rebuilt title
If you’re considering buying a vehicle with a rebuilt title, here are some critical steps to take to ensure you don’t buy a car that Before buying a rebuilt title vehicle, your first priority is understanding exactly what happened to the car and how well it was fixed. Frame damage, flood damage and shoddy repair work are the biggest risks, and they’re not always visible. A pre-purchase inspection from a trusted mechanic is non-negotiable.
- Research the vehicle’s history. You can do this through VINCheck, which is free, or pay to get a vehicle history report from Carfax, AutoCheck or the National Motor Vehicle Title Information System.
- Be wary of frame damage. Repairing frame damage is costly and requires significant work and, if not done correctly by a professional mechanic, may result in other problems.
- Inspect for flood damage. Most experts recommend not buying a rebuilt title car with flood damage.
Try to find where the car repairs were done and research the reputation of the mechanics that did the work. If possible, review the seller’s repair records and receipts to know how much work was required. Even if everything checks out, always have a car inspected by a trusted mechanic before offering to buy it.
Can you get full coverage on a vehicle with a rebuilt title?
If you’re looking for more than liability coverage on a rebuilt title car, your options narrow fast. Most insurers that write these policies stop at liability. While it is difficult to find an insurance carrier that will provide the owner the option of adding on comprehensive and collision, it’s not impossible.
Comprehensive coverage protects you if damage to your car isn’t due to an accident, covering theft, vandalism or damage from a natural disaster. Collision coverage covers your vehicle if it’s damaged in an accident. Both can be hard to find for rebuilt-title vehicles.
How to get a salvage title cleared
To get a salvage title cleared, the vehicle must be repaired, pass a state inspection and be retitled by the DMV. The result is a rebuilt title that allows you to register, drive and insure the car. Requirements vary as states have different names, descriptions and qualifications for clearing and making a salvage title car roadworthy again.
Generally, we refer to this as a rebuilt title, but your state and insurer may use different language, such as “reconstructed.” So, while requirements vary, the insurance company typically wants a mechanic’s statement that the car is roadworthy.
How does a salvage or rebuilt title affect the value of a car?
A salvage or rebuilt title car will be worth 20% to 40% less than a clean title car, according to Kelley Blue Book. The value of vehicles with rebuilt titles also depends on the amount of damage, the make and model and the auto market in your area, so have a private appraiser determine the market value.
Frequently Asked Questions: Rebuilt title vehicles
How much more does it cost to insure a rebuilt title car?
Rebuilt title vehicles often cost more to insure because fewer companies compete for the business. Carriers that do write these policies, usually those serving higher-risk drivers, tend to charge more than standard-market insurers. The car’s year, make and model factor in, though its diminished market value typically does not affect your rate.
Which insurance companies cover salvage or rebuilt title vehicles?
Coverage availability varies and changes over time, so the best approach is to shop multiple insurers directly. Carriers that serve nonstandard or high-risk markets are more likely to offer coverage. Travelers and Direct General are examples of companies that do not write policies for salvage vehicles. Always confirm current availability when you shop, as carrier guidelines can change.
Do all car insurance companies insure salvage or rebuilt vehicles?
No. An estimated 20% to 30% of auto insurers won’t write policies for salvage or rebuilt title vehicles, Suarez said. Coverage options also tighten after major weather events, when some carriers become more selective about insuring vehicles with prior damage history.
Can you get full coverage on a rebuilt title car?
Full coverage is possible but harder to find on a rebuilt title vehicle. Most insurers that write these policies offer liability coverage only. Adding comprehensive and collision requires finding a carrier willing to take on the added risk, which means shopping beyond the standard market.
Can you switch insurance companies with a rebuilt title car?
Yes, but your options are more limited than with a clean-title vehicle. Some insurers won’t write new policies for rebuilt title cars, and those that do may charge higher premiums. Compare quotes and coverage terms before you switch to make sure the new policy actually covers what you need.
The bottom line
Insuring a salvage or rebuilt title car is possible. It just takes more legwork than finding coverage for a clean-title vehicle. Knowing what documentation you need, which carriers work with these vehicles and what coverage limitations to expect puts you ahead. When you’re ready to compare options, use our car insurance comparison tool to find insurers that write policies for your specific situation.
Resources & Methodology
Sources
- Kelley Blue Book. “Frequently Asked Questions.” Accessed June 2026.
- National Motor Vehicle Title Information System (NMVTIS). Bureau of Justice Assistance, U.S. DOJ. Accessed June 2026.
- NICB VINCheck. National Insurance Crime Bureau. Accessed June 2026.
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