If your vehicle has been issued a salvage title after being declared a total loss, you may be wondering how (and if) you’ll be able to get a car insurance policy to drive it again.
We’ve got the answers here!
Can you get insurance on a salvage title?
Technically speaking, no, you cannot insure a car with a salvage title.
If a vehicle has a salvage title it means that it has been damaged to the point where the owner or the insurance company has reported to the DMV that it is no longer fit for driving on the road.
In many cases, the total loss declaration is a result of the cost of repair being more than the cost to replace the vehicle with a new one.
Insurance for Rebuilt Title Cars
However, if the salvage vehicle is sufficiently repaired and inspected, you can get a rebuilt or repaired title, which will allow you to register and insure it again.
A vehicle with a salvage title that has been updated to a rebuilt title status can be covered by an insurance policy.
In fact, if you want to register and legally drive a rebuilt salvage car, you will need to get car insurance for it.
Be aware though, many insurance providers will place restrictions on the types of coverages and limits you’ll be able to purchase for a rebuilt salvage vehicle.
Does a Salvage Title Affect Insurance Rates?
Unfortunately, a vehicle that has a salvage title history will be more expensive to insure.
Since there may still be underlying damage or issues on a rebuilt salvage car, insurance companies will deem it as riskier to insure.
You can expect your rates for available coverages to be a bit higher than the rates for a vehicle with a clean title.
In some cases, your rates may be up to 20% more than comparable coverage for a clean title car.
It definitely pays to shop around and compare quotes from different providers if you are trying to insure a salvage title vehicle.
Full Coverage Insurance for a Salvage Title
Most insurance providers will not offer full coverage policies if a car has had a salvage title.
This means that comprehensive and collision coverage may not be available for you.
The reason being, that in the event of a crash or other damage to the vehicle, it may be hard for the insurance company to determine if the damage is new or existing from the previous salvage status.
Considering the value of a salvage/rebuilt car is going to be considerably less than a clean title vehicle, full coverage insurance is typically not necessary nor a wise purchase.
However, you will be able to get the coverage required to register and drive your vehicle, including:
- Liability coverage.
- Uninsured/underinsured motorist coverage.
- Medical payments/PIP, if applicable.
When you do find the right provider, they may ask you to provide a few additional details in order to issue your policy, such as:
- Mechanic’s certificate of inspection.
- Current photos of the car and major repairs.
- Repair estimates and receipts.
Again, be sure to compare salvage title insurance quotes from a few different providers to get the best coverage and the best price.
Learn more about salvage titles and vehicle history with these related articles and resources: