Rebuilt Title Auto Insurance (2024)

Cars with a salvage title must be repaired and pass an inspection before driving them, after which you will need to get rebuilt title auto insurance.  Although they’re initially cheaper to buy, rebuilt salvage cars can be expensive to own.

Rebuilt title cars come with many expenses, from costly repairs to higher car insurance rates. While there are plenty of ways to find cheap auto insurance for rebuilt cars, there will be a lot of work that will go into a salvage car, so it’s better to be mindful of the long-term price tag as well. 

Read on to learn what you need in order to get car insurance for a rebuilt title, then compare rates to find the best price possible for coverage.

What is a rebuilt title?

When a car gets damaged to the point where it would cost more to repair than replace, insurance companies will declare the vehicle a total loss. When this happens, the car’s original title gets replaced with a salvage title.

Learn more: Salvage Title Defined 

You can’t drive a car with a salvage title on a public road nor insure it since no reputable company will cover a salvage vehicle. However, there are advantages to buying a car with a salvage title.

For example, salvage cars are much cheaper than their clean title counterparts and are a great way to find spare parts or buy a car to work on as a hobby.

Insurance companies will declare a car a total loss for several reasons. While people usually consider car accidents the primary cause, other reasons include vandalism, animal contact, weather damage, fire, and theft.

Despite the term’s implications, a total loss declaration doesn’t mean the car is useless. Insurance companies declare a car totaled when it reaches a specific damage threshold. Every company is different, but most report cars totaled when the cost of repairing damage reaches 75 to 90% of its total value.

If your car gets totaled — and you have the right insurance — the company will issue a payment for the vehicle’s value. Then, the company usually sells the car to a mechanic or scrap yard to recoup some of its losses.

Some salvage cars can get repaired to the point where they’re eligible to receive a rebuilt title. State laws differ on how to get a rebuilt title, but it usually requires the car to pass an examination. Once the rebuilt title gets issued, it’s street-legal again.

Rebuilt titles aren’t worse than clean titles — they simply mean the car was once totaled, declared salvage, and repaired. You might hear the terms salvage and rebuilt title used interchangeably, but they aren’t the same.

An easy way to tell which type of title your car has is by looking at the color of the title’s paper:

• Green titles are clean
• Blue titles are salvaged
• Orange titles are rebuilt

If you’re confused about whether you have a rebuilt or salvage title, there’s no need to worry. An insurance company representative can help you determine what you have and find the right coverage for your car.

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Can you get insurance for a car with a rebuilt title?

Since a car with a rebuilt title is legal to drive, most insurance companies will offer you insurance. However, that’s not always the case — some companies refuse to insure a rebuilt or salvage title, so check with an insurance company representative to see if they sell auto insurance for salvage vehicles.

Usually, the only insurance you can buy for a rebuilt car is a liability plan, and most states require a minimum level of liability insurance to drive legally. Since rebuilt titles are legal to drive, most companies will offer the insurance you need to stay legal.

While you can save money by buying a rebuilt car, your insurance rates will likely be higher. Car insurance companies charge more for rebuilt titles because they consider them a higher risk.

Due to this risk, you’ll likely receive a smaller payout if you file a claim. Additionally, a rebuilt car is worth less than a car with a clean title, which will also lower any payouts.

Can you get full coverage insurance on a rebuilt title?

Finding bodily injury liability (BIL) auto insurance for rebuilt cars is relatively easy, but buying more insurance can be difficult. Simply put, most insurance companies only sell liability policies for rebuilt titles. 

Full coverage for a rebuilt title will likely be expensive if you can find a company that will sell it to you. The reason full coverage for a rebuilt title is scarce is that it can be difficult to determine your vehicle’s exact value, and proving an accident caused car damage after filing a claim can be challenging.

There also could be undiscovered vehicle damage that shows up later on, which could cause serious or dangerous problems.

This danger is why so many companies are hesitant to offer anything more than liability insurance to a rebuilt car. Companies assume that a vehicle with a rebuilt title is more likely to file a claim than cars with clean titles.

What is the best insurance for rebuilt titles?

Although they’re legal to drive, finding a company to give you a reasonable price for an insurance policy on a rebuilt title can be challenging. That’s especially true for finding full coverage.

If you already have a car insurance policy, you can ask an insurance company representative to add your rebuilt car to the plan. If you need new insurance, the following companies are excellent places to start looking:

• Allstate
• Geico
• MetLife
• Progressive (full coverage in some cases)
• State Farm
• Farmers

Each company has different qualifications a car must meet before selling you an insurance policy. For example, Geico rebuilt title insurance requires your vehicle to pass further inspections. Other companies have membership requirements — for example, you can buy USAA rebuilt title insurance, but only if you’re an active or retired military member or their family.

Still, others have very few requirements. If you buy State Farm rebuilt title insurance, your car only needs to pass state inspections.

Whichever company you choose, it’s essential to compare quotes to find the best price.

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How do you get insurance for rebuilt titles?

Getting insurance on a rebuilt vehicle might sound confusing, but it’s not as complicated as you think. While it certainly takes more effort than a car with a clean title, the process is worthwhile when driving your vehicle.

To get insurance on a rebuilt car, take the following steps:

• Make sure you have the correct title. You can’t drive a salvage title car, so ensure you have the correct title before getting insurance.
• Get a certified mechanic’s statement. This statement certifies that a mechanic combed the vehicle for damage and found nothing to worry about. It makes an insurance company more confident in giving you coverage.
• Shop for coverage. As previously stated, not all companies offer insurance for a salvage car. If you want full coverage, you’ll have to search hard.
• Compare quotes. According to J.D. Power, rebuilt title insurance costs up to 20% more than insurance for a clean car. To save money, shop for as many companies as possible.

It might sound difficult to get through all these steps, but you don’t have to do it alone. Getting quotes online is simple — once you know which company you want to buy from, an insurance company representative will help you with the details.

Find the Best Auto Insurance for Rebuilt Titles

Buying a car with a rebuilt title is an excellent opportunity to buy an inexpensive car, and there’s no reason not to buy one. Even though rebuilt title insurance rates are more expensive, you shouldn’t let that get in your way if there’s a rebuilt car you want.

Once your salvage car passes inspection and receives a rebuilt title, you’re ready to shop for car insurance. Compare rates with as many companies as possible to find the best price.

Rebuilt Title Auto Insurance Overview

A car with a rebuilt title has been fixed and made safe to drive after being declared a total loss by an insurance company. Rebuilt title cars are legal to drive, but you’ll need insurance before hitting the road. You can find rebuilt title insurance, but it will likely cost more.

When a car has been damaged to the point where it would cost an insurance company more to repair than to replace, it’s declared a total loss. Total loss vehicles have their original titles replaced with a salvage title.

Cars with salvage titles can’t legally be driven, and insurance companies won’t insure them. But there are advantages to buying a salvage car. For example, salvage cars are great resources for spare parts.

However, a salvage car will need to be repaired and inspected if you want to drive it. Salvage title cars that have passed a state inspection are issued rebuilt, or branded, titles and can be legally driven and insured.

Although rebuilt cars are more affordable to purchase, insurance prices will be more expensive. And some companies won’t offer you a policy at all.

Cars with rebuilt titles are cheaper, but auto insurance quotes can be pricey. Some companies won’t even insure a vehicle with a rebuilt title.

If you’ve purchased a car without a clean title, it is possible to buy rebuilt title insurance. It’s vital that you shop around to save money. Enter your ZIP code into our free tool to discover what quotes might look like for you.

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What is a rebuilt title?

There are several reasons why a car can be declared a total loss. The first that comes to mind is usually damage caused by an accident. However, weather damage, vandalism, animal contact, theft, and many other situations can lead to a totaled car.

Simply because a car has been declared a total loss doesn’t mean that it’s completely destroyed. Insurance companies deem a car totaled once it has reached a specific threshold for damage. When the price to repair damage reaches between 75% and 90% of the car’s total value, the company will declare it totaled.

If your car is declared totaled, your insurance company will compensate you for your vehicle. Then, they usually sell the totaled car to recoup some of their loss. You can also keep your car and attempt to fix it on your own time, but you would need to speak with your agent for details.

Once a salvage car is repaired, it might be eligible for a rebuilt title — also known as a reconstructed title. State laws differ on how you can upgrade a car’s title to street-legal. Typically, the car needs to pass an examination.

So, what does a rebuilt title mean exactly? It simply means that a car was once totaled, declared salvage, and has since been repaired. Salvage and rebuilt titles are often used interchangeably, but they aren’t the same.

An easy way to keep track of the type of title you have is by looking at the color of your document:

• Green titles are clean
• Blue titles are salvage
• Orange titles are rebuilt

Don’t worry if you’re confused by the title that you possess. An insurance agent is familiar with rebuilt titles and can help you find the appropriate coverage.

Can you get insurance for a rebuilt title?

A car with a rebuilt title is legal to drive, so most insurance companies will work with you. However, some companies refuse to insure a rebuilt title car, so ensure that you check with an agent.

The most common policies assigned to rebuilt cars are liability plans. Most states have minimum coverage requirements, which is what insurance companies offer for rebuilt vehicles.

Buying a rebuilt car can initially save you a lot of money, but you’ll be paying more for insurance. Insurance companies charge more for coverage because they consider rebuilt cars a higher risk.

Additionally, if you have to make a claim, you’ll likely receive a small payout since your car will be of lesser value.

Can you get full coverage insurance on a vehicle with a rebuilt title?

While acquiring liability coverage for a rebuilt car is relatively simple, finding full coverage is considerably more complex. Simply put, most insurance companies either won’t give you full coverage, or they’ll charge you an outrageous price for it.

Full coverage is improbable because it’s challenging to determine the exact value of your car. If you need to make a claim, proving that damage was caused by an accident and wasn’t already there is very challenging.

Another reason why it’s difficult to obtain full coverage is because there could be undiscovered damage on your vehicle that will eventually emerge. Undetected damage to your car might cause future issues and can be quite hazardous.

Due to this risk, it isn’t easy to find a company that offers full coverage. Insurance companies assume that someone with a rebuilt car is more likely to file a claim. With the difficulty of determining the value of a rebuilt car, insurance companies are less willing to provide large payouts.

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What is the best insurance for a vehicle with a rebuilt title?

Even though they are legal to drive, it can be slightly challenging to find a rebuilt title insurance company — particularly one that offers full coverage. If you have an existing insurance policy for another vehicle, you can request that your agent cover your rebuilt car.

If you don’t have insurance, the following companies offer rebuilt title coverage:

• Allstate
• Geico (Geico requires additional inspections before it will insure you)
• MetLife
• Progressive (Progressive offers full coverage in some cases)
• State Farm
• Farmers

These companies have different requirements that they’ll need to see fulfilled before offering you coverage. You’ll likely have limitations on your policy as well. This is why comparing quotes is vitally important when you have a rebuilt car.

How do you get insurance for rebuilt titles?

Getting insurance on a rebuilt vehicle might sound confusing, but it’s not as complicated as you might think. While it certainly takes more effort than a car with a clean title, the process is worthwhile when you can drive your vehicle.

Take the following steps to secure insurance for your rebuilt car:

• Ensure that you have the correct title – You can’t drive a car with a salvage title, so you need to confirm that you have the right title before attempting to obtain insurance.
• Get a certified mechanic’s statement – This statement certifies that a mechanic has thoroughly examined the vehicle for damage and found nothing of concern. This statement will give an insurance company more confidence in providing you coverage.
• Shop for coverage – As stated, not every company will insure a salvage car. It can also be challenging to find coverage beyond liability-only.
• Compare quotes – Rebuilt title insurance costs up to 20% more than insurance for a clean car. If you want to save money, you must research as many companies as possible.

It might sound difficult to endure all these steps, but you don’t have to do it alone. Obtaining quotes online is simple, and once you know which company you want to purchase from, an agent will help you with the details.

Find the Best Insurance for Rebuilt Titles

Cars with rebuilt titles can be a great value, and there’s no reason why you shouldn’t buy one. While rebuilt title insurance quotes aren’t as affordable as insurance for cars with clean titles, you shouldn’t let that prevent you from owning a car.

You can find the most affordable rebuilt title insurance rates by shopping around. If you’re ready to see what quotes might look like for you, enter your ZIP code into our free tool today.

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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