How to Insure Your Rebuilt Vehicle

The process of insuring a rebuilt title car is more difficult than that of insuring a vehicle with a clean title, as reconditioned salvage vehicles often pose a higher risk of insurance claims and safety issues in the future. However, some insurance companies will allow you to insure a previously salvaged vehicle once you repair and rebuild it, even with these concerns in mind.

How can you insure a car with a rebuilt title? To obtain insurance on a previously salvaged vehicle, you will need to shop around until you find a company that agrees to write you an insurance policy.

Many insurers will agree to writing a basic liability insurance policy that allows you to legally drive the rebuilt vehicle in the state where you live, but few insurers will sell comprehensive or full coverage insurance policies to owners of previously salvaged vehicles. To learn more about insuring a salvage title car and to explore the different steps you must take to properly insure your rebuilt vehicle, review the information below.

How much does rebuilt title insurance cost?

While average car insurance rates vary by vehicle type, the state in which you live and other factors such as your age and gender, most drivers pay around $1,426 per year on insuring a motor vehicle, or $713 per month. However, high risk auto insurance policies cost more, including those for previously salvaged vehicles. Some companies will charge you as much as 20 percent more to insure a rebuilt vehicle.

If the average cost of insuring a vehicle is $1,426 per year, purchasing a liability policy for a previously salvaged vehicle could easily exceed $1,711 per year. While you may be able to acquire a previously salvaged car or truck for less money than you would purchase a vehicle with a clean title, the cost of insuring it will typically be higher.

In addition to the higher cost of car insurance per month or year, keep in mind that previously salvaged vehicles are more difficult to sell or trade-in in the future. Therefore, the lower cost of purchasing a previously salvaged vehicle may not be worth the hassle of owning and insuring the rebuilt car or truck for many years to come.

Before purchasing an insurance policy for your rebuilt car or truck, it is important to shop around for a lower rate if the cost of insuring the rebuilt car or truck exceeds the amount you saved by purchasing the previously salvaged vehicle in the first place.

Finding cheap car insurance for salvage title vehicles is not always easy but comparing quotes from at least three different insurance companies will increase your chances of getting a better deal on your insurance premiums.

How can you insure a rebuilt title vehicle?

To obtain rebuilt car insurance coverage, you can get started by shopping around and obtaining quotes from multiple insurance companies.

Approximately 20 to 30 percent of automobile insurance companies refuse to insure previously salvaged vehicles. Therefore, it is important to shop around until you find a company that agrees to write you a policy at an affordable rate. Keep in mind that some companies will offer you insurance discounts if you meet certain requirements.

However, contacting an existing automobile insurance provider may be a good starting point for you if you own and operate other types of motor vehicles.

Once you find an insurance company that covers rebuilt title vehicles, you will typically need to present the following documents in order to get an accurate quote:

• A certified statement from your mechanic, as this verifies that the previously salvaged vehicle is in working condition
• An original repair estimate for the previously salvaged vehicle, as this proves that the vehicle was repaired if it suffered any damages
• Receipts for any vehicle repairs

When you purchase insurance salvage cars, you must obtain proof of the vehicle repair and maintenance from the seller. If the seller of the rebuilt vehicle will not provide you with this documentation, you will not be able to insure the car or truck in the state where you live, and you will not be able to drive the vehicle legally.

Before obtaining car insurance quotes for rebuilt titles, make sure you obtain all the information you need in order to insure the previously salvaged motor vehicle in the state where you reside.

Can you get full coverage on a rebuilt title vehicle?

If you wish to obtain full coverage on salvage title vehicles, you must also provide the insurance company with photos of the car or truck before and after it was repaired and rebuilt. If you make an insurance claim after your rebuilt vehicle sustains damages, your insurance company will need to review the before and after photos of the automobile before settling the claim.

Moreover, obtaining full coverage for rebuilt title vehicles is difficult, as most insurers are hesitant to write comprehensive or collision policies for previously salvaged cars and trucks. Since the vehicle was once deemed to be unfit for public operation, the chances of it causing an accident or breaking down are much higher.

While specific rules will vary depending on the insurer, you will typically only be able to obtain a basic liability insurance policy that protects you from financial responsibility if you injure another individual or damage his or her personal property.

Moreover, getting an auto loan for salvage title vehicles is not easy, as it can be difficult to determine the resale value of a rebuilt car or truck. Therefore, you typically need to purchase rebuilt vehicles with cash.

Can a salvage title car be insured?

Salvage title insurance is a term that is often used interchangeably with rebuilt insurance coverage, but salvage and rebuilt vehicles are not the same thing. Rebuilt insurance coverage is only available to previously salvaged vehicles that have been repaired, rebuilt and inspected, while salvage title vehicles cannot be insured or driven until they are repaired and rebuilt.

You cannot insure a vehicle with a salvage title, but you may purchase a basic liability policy for a rebuilt title car or truck if you wish to drive the repaired motor vehicle on public roadways. However, rebuilt vehicles are riskier to insure, and you will need to shop around until you find an insurance company that agrees to write you a policy. If you have a “junk car,” it may be better for you to sell it for parts than to try to insure it unless you are familiar with complex car repairs.