Rebuilt title insurance is a standard auto insurance policy that covers a repaired total loss vehicle. Rebuilt title insurance applies to cars that insurers totaled, repair shops rebuilt, and state inspectors approved. Rebuilt title cars create three risks for car owners: hidden structural damage, reduced resale value, and limited coverage options. According to CCC Intelligent Solutions, 23.1% of auto claims became total losses in 2025. No insurer covers a car that still carries a salvage title. Premiums for a rebuilt title car run about 20% higher than premiums for a clean title car. Insurance Navy helps car owners compare rebuilt title insurance quotes across the United States. This guide explains rebuilt title insurance costs, coverage options, state inspections, and carrier approval steps.
Table of contents
- What is a Salvage Title Car?
- Rebuilt Title vs. Salvage Title: What's the Difference?
- What Coverage Can You Get on a Rebuilt Title?
- Liability Coverage
- Can You Get Full Coverage on a Rebuilt Title?
- Steps to Insure a Salvage Title Car (Salvage to Rebuilt to Insured)
- Which Insurance Companies Cover Rebuilt Titles?
- Insurance Costs for Salvage and Rebuilt Title Vehicles
- Why Does Insurance Cost More for Salvage and Rebuilt Title Vehicles?
- Factors That Affect Insurance Rates for Rebuilt Title Vehicles
- How to Save on Insurance for a Salvage or Rebuilt Title Vehicle
- Is Insuring a Rebuilt Title Car Worth It?
- Frequently Asked Questions
- Can you get insurance on a salvage title car?
- Can I get full coverage on a salvage title car?
- Do you need to apply for a rebuilt title to drive salvage vehicles?
- What if I don't disclose the salvage title to my insurer?
- Do rebuilt salvage cars cost more to insure?
- Does a rebuilt title affect insurance?
Rebuilt title insurance is a standard auto insurance policy written on a car that an insurer declared a total loss, a repair shop rebuilt, a state inspector approved, and the state re-titled as rebuilt. No insurer will insure a car that still carries a salvage title.
Once the car has a rebuilt title, most insurers will write liability coverage. Some insurers add comprehensive and collision coverage after their own inspection. Premiums for a rebuilt title car run about 20% higher than premiums for the same car with a clean title. The salvage title is the stage between the total loss and the rebuilt title. A salvage title car is neither drivable nor insurable.
Rebuilt title insurance is not a separate product. No insurer sells a policy called salvage title insurance. This guide covers what a salvage title is, how a salvage title becomes a rebuilt title, which coverages and insurers are available, what a policy costs, and how to get a policy approved.
What is a Salvage Title Car?
A salvage title is issued to a vehicle declared a total loss by an insurance company after suffering significant damage such as flood, vandalism, or a severe collision.
A car does not need repair costs above its market value to be declared a total loss. Each state sets its own total loss threshold. Illinois declares a total loss when damage exceeds 33 1/3% of the car's fair market value. Nevada declares a total loss when the repair cost reaches 65% of the car's fair market value. California uses a judgment test, "uneconomical to repair," with no fixed percentage. After the insurer pays the actual cash value, the state issues a salvage certificate instead of a clean title.
Vehicles with salvage titles are no longer roadworthy. Their value drops significantly due to the hidden risks of repairs not done correctly. Auto insurers usually sell these vehicles at auction or to a salvage yard for scrap parts.
If you keep a totaled car instead of surrendering the car to the insurer, the insurer pays the actual cash value minus your deductible and minus the car's salvage value. The state then reissues the title as a salvage title.
However, a salvage vehicle can be rebuilt and restored to roadworthy condition. A licensed repair specialist must do the extensive repairs and ensure the vehicle meets state safety and functionality standards.
Once it passes the state inspection, the salvage title is replaced with a rebuilt title, and the vehicle is now legally drivable.
Check the repair history and the available car insurance options before you buy a rebuilt title car.
Rebuilt Title vs. Salvage Title: What's the Difference?
Both rebuilt and salvaged title vehicles have been badly damaged and are more expensive to fix than to replace the car. But the main difference is the repair status.
A salvage title car has not been repaired, drivable, or insurable. A rebuilt title car has been restored, inspected, and deemed roadworthy. It can be insured and driven.
Before buying a car, always check if it has a clean, salvage, or rebuilt title. Some states use color-coded titles to identify the type of title:
Green Title - clean title with no significant damage history.
Blue Title - salvage title the car is a total loss.
Orange Title - rebuilt title: the salvage car has been repaired and meets state safety standards.
Title color codes vary by state, so always check the car's title history before you buy.
What Coverage Can You Get on a Rebuilt Title?
Insurers offer fewer coverage options on a rebuilt title car than on a clean title car. The narrower choice reflects the car's total loss history.
Liability Coverage
Liability auto insurance is required in all states except New Hampshire, so it's one of the more common coverage options for cars with rebuilt titles.
Most insurers that do offer policies for rebuilt cars only provide liability car insurance so the vehicle can be driven legally.
Property damage coverage pays if you're found at fault in an accident that damages another car or property.
Can You Get Full Coverage on a Rebuilt Title?
Yes. Some insurers write comprehensive and collision coverage on a rebuilt title car. Most of those insurers require an inspection of the finished repairs first, and the coverage costs more than the same coverage on a clean title car. Insurers hesitate because of the claim payout. Collision and comprehensive claims pay the car's actual cash value. Actual cash value is the car's depreciated market value at the time of the loss, not the purchase price and not the repair cost. A rebuilt title lowers that market value. The insurer has a harder time pricing the risk, and you receive a smaller payout if the car is totaled again.
Collision coverage covers damage to your car from a crash with another vehicle or object.
Comprehensive coverage covers non-collision related damage, such as theft, vandalism, fire, hail, or a fallen tree.
Compare the annual premium for comprehensive and collision coverage with the car's actual cash value before you buy full coverage.
Steps to Insure a Salvage Title Car (Salvage to Rebuilt to Insured)
Insuring a salvage title vehicle requires getting it roadworthy and insured. Since insurance companies limit coverage for rebuilt cars due to previous damage and uncertain repair history, you need to do it right.
Inspect and Document the Vehicle - Inspect the car's exterior, interior, and mechanical components. Take pictures or videos of the car at the time of purchase and record any visible damage and needed repairs.
Get a Certified Mechanic's Statement - Hire a licensed mechanic to perform a complete vehicle inspection. Once repairs are completed, ask for a written statement that the vehicle is roadworthy and meets safety standards.
Apply for Rebuilt Title - Apply to your state's Department of Motor Vehicles for a rebuilt title. Each state has different requirements, including inspection fees, paperwork, and emissions testing. A rebuilt title is required before the vehicle can be registered or insured.
Shop for Car Insurance - Get quotes from 3 to 4 insurance providers. Many insurers only offer liability coverage for rebuilt vehicles. If comprehensive and collision coverage is available it may have much higher premiums than a car with a clean title.
Submit Required Documents to Your Insurer - Provide necessary paperwork, including a certified mechanic's statement, pictures or videos of the car, and the repair costs of the damages and repairs done.
Buy a Car Insurance Policy - Once the insurer approves your application, buy the policy to you have the required coverage to drive the vehicle legally. Insuring a rebuilt salvage title car can be challenging. Still, you can increase your chances of getting insured with proper documentation and research.
Which Insurance Companies Cover Rebuilt Titles?
Availability changes by state and by carrier underwriting. The list below is a starting point for quotes, not a guarantee.
Non-standard and High-risk Specialists - Insurance Navy quotes rebuilt title cars with multiple carriers in a single call. You can compare a liability-only quote against a full-coverage quote before you buy.
Standard Insurers - While some regular insurers may offer limited coverage for rebuilt vehicles, the situation varies. Be prepared to shop around and compare policies; many standard insurance companies won't cover vehicles with a salvage history.
Ask each carrier 2 questions before you request a quote: does the carrier insure rebuilt titles in your state, and does the carrier offer full coverage on them? Carriers that offer full coverage ask for the rebuilt title, the state inspection report, before-and-after photos, and the mechanic's statement before they quote.
Insurance Costs for Salvage and Rebuilt Title Vehicles
Insuring a rebuilt title car costs about 20% more than insuring the same car with a clean title. Insurers also offer fewer coverages on a rebuilt title car.
Why Does Insurance Cost More for Salvage and Rebuilt Title Vehicles?
Limited Coverage Options - Fewer insurers offer comprehensive and collision coverage on a rebuilt title car, and the insurers that do charge more for it.
High Risk for Insurers - A rebuilt car may have hidden mechanical or structural damage from the original total loss that the repair did not fully fix. Hidden damage raises the chance of future breakdowns and accidents, and insurers price that risk into the premium. A rebuilt title also lowers the car's resale value.
Factors That Affect Insurance Rates for Rebuilt Title Vehicles
Vehicle Condition - A well-maintained car is considered lower risk and may qualify for better car insurance rates. Poorly repaired or aging vehicles may cost more.
Vehicle History - A car's accident history, mileage, and past repair records play a part in determining risk. If a vehicle has been totaled before, insurers may not want to insure it or charge more.
Driving Record - Your personal driving history impacts car insurance costs. A clean driving record can get you lower rates, while accidents or traffic violations may result in higher rates or limited coverage.
State Regulations - Each state has different car insurance requirements for rebuilt title vehicles, and some insurers only offer coverage in specific states. If you move, you may need to find a new insurer that covers rebuilt cars in your new location.
How to Save on Insurance for a Salvage or Rebuilt Title Vehicle
Get Multiple Quotes - Since coverage varies by insurer, get at least three to four quotes to find the best rate.
Raise Your Deductible - A higher deductible will lower your monthly car insurance premium. Still, you'll pay more out of pocket if you file a claim.
Look for Discounts - Some insurers offer policy bundling discounts, defensive driving course discounts, or low mileage discounts.
Insuring a salvage or rebuilt title vehicle is more expensive and difficult, but researching options, maintaining the vehicle, and looking for discounts can help you save overall.
Is Insuring a Rebuilt Title Car Worth It?
Usually yes, as long as the policy stays proportional to the car's value. Once the car has a rebuilt title, minimum liability coverage is easy to get and lets you drive the car legally.
Whether comprehensive and collision coverage are worth the money depends on the car's actual cash value.
If the annual premium for comprehensive and collision comes close to the payout you could expect from a total loss, buy liability coverage only.
Compare insurance quotes before you buy a salvage or rebuilt title car. Some rebuilt title cars cost too much to insure, and some find no insurer at all.
Get a Rebuilt Title Insurance Quote from Insurance Navy
If you're looking for cheap car insurance coverage, Insurance Navy can help. Call an insurance agent at 888-949-6289 for a free auto insurance quote.
Quotes are also available via our website and mobile app. Get your car insured today and drive worry-free tomorrow.
