There are times when too much damage becomes too much to handle. At that point, your insurance providers may declare your damaged car impossible or too costly to repair or a total loss.
This can happen when the vehicle is damaged beyond any possible repair or the cost of repairs exceeds the car’s value by several thousands of dollars or anywhere between 70% to 90% of said value.
Naturally, those kinds of repairs are far beyond your coverage limits. There’s a chain reaction once a car is declared a total loss -the car insurance policy is dropped, the DMV registers the car as no longer safe to drive, and it is issued a salvage title. From there, you’re at the crossroads of whether to have your car repaired yourself or buy a new one altogether.
What does a Rebuilt Title Mean?
Any car with a rebuilt title had a salvage title at one point. However, mention of the title will still be listed on their vehicle history. Once a salvage title car is repaired and evaluated, it can be issued a rebuilt title. This title certifies that the vehicle has been repaired and works well enough to be street-legal. The car can now qualify for auto insurance coverage, though it may be limited and hard to find.
Requirements for a rebuilt title vary from state to state. One thing that remains consistent about rebuilt titles across the board is that the car’s value will never be the same again. If anything, it will be significantly less -around 20% to 40% less value than before it was declared a total loss.
How Does a Car Get a Rebuilt Title?
Congratulations. By having your car be declared a total loss and issued a salvage title, you’ve completed the first step towards getting a rebuilt title. Rebuilt titles are used in no other context or way than after a salvage title. Getting a rebuilt title can take some time and consume some money -it helps first to assess the damage and decide whether or not it would be worth it.
From there, you will have to:
- Buy the vehicle - Once a car is declared a total loss, the ownership is transferred to a licensed rebuilder or the insurance company to sell for parts. You would have to be the legal owner to repair the vehicle itself.
- Get vehicle repairs - Some certified mechanics specializing in repairing cars declared a total loss. Keep your vehicle papers and documents in order before the vehicle is totaled. This kind of repair may require you to document your car with photos.
- Receive certification inspections - The proper certification and inspection from the Department of Motor Vehicles is the most crucial step in receiving a rebuilt title. You will need your vehicle bill of sale, salvage title, photo documentation, and forms from the DMV. You may have to pay an inspection fee as well.
- File rebuilt title - Now comes the rebuilt title itself. Applying for one typically requires more associated forms and fees. Once the application is accepted, you’ll be granted a rebuilt title. The state where you get your rebuilt title should be the same one where you got the salvage title.
How Do You Get Insurance on a Car With a Rebuilt Title?
Before a rebuilt title, getting auto insurance for a salvage car is possible. Because the vehicle isn’t safe to drive, insurance for salvages is challenging to qualify for. Some difficulties may still be present when applying for rebuilt title insurance. However, it can be easier since the car works in order.
Regardless, some insurance companies will turn you down if your car has a rebuilt or salvage title. At the same time, those that don’t may not even offer full coverage for those types of vehicles. This is because pre-existing damage that it initially sustained may cause some problems in the long term. So, they may not offer comprehensive or collision coverage. On the bright side, this would mean lower monthly rates.
However, receiving more than just liability auto insurance with a rebuilt title with some insurance companies may be possible. More information is typically required, such as a written statement from the auto shop mechanic supporting that the vehicle is fully fixed and in working condition.
Your photo documentation, along with the repair receipts, would also be greatly appreciated. If you bought your rebuilt title vehicle, all these would be given to you at the time of the sale.
Can You Buy or Sell a Car With a Rebuilt Title?
Outside of driving privileges, safety, and insurance coverage, buying and selling cars with titles remains one of the most asked-about topics in the subject.
There’s the car’s value after being declared a total loss. Status shows that rebuilt title cars are worth 20% to 40% less than their standard value. This reduced value and sticker price is why some drivers buy cars with titles to save money.
We’ve mentioned this before. We have yet to mention the possible drawbacks of purchasing a car with a rebuilt or salvage title.
When thinking about buying a rebuilt car, you should consider:
- How the damage occurred - You’ll need to know the specifics of the incident that caused the car to become totaled and be issued the titles. How it happened, what caused it, and the parties involved should be acknowledged.
- Severity of damage - The first reported damage may not be the end of the story. Specific auto damage can cause lasting issues that the driver should always be aware of. This is also extremely important for insurance companies to know.
- Specifics about repairs - Everything about the repair shop that repaired the car to upgrade from salvage to a rebuilt title. The mechanic’s receipt, service number, and written statement should be kept in the car’s glove box.
- Mechanic verification - A written statement from the mechanic who supplied the repairs shows that they are certified and approved to make the fixes. This is important as only some mechanics will do for totaled car repairs.
- Insurance coverage - Now, it’s all a matter of whether or not an insurance company will provide the vehicle with coverage. This may require some poking around at local and national brokers.
Should I Buy a Car with a Rebuilt Title?
There is no middle ground for rebuilt title vehicles. Buying a car with a significant past is right or wrong for you -there’s no in-between. The only two cases in your favor when rebuilding a totaled car are that the damage wasn’t too severe and the value decreased significantly, so you can easily afford it.
Some Damages to be aware of when buying a car with a Rebuilt Title:
- Undercarriage dents - The under region of a car is where all the fuel lines run. Straightening out a dent on the body is more accessible than the undercarriage. So, it helps to look for damage or dents to the fuel lines as it can cause serious problems.
- Defective safety features - Features like the airbag should work without problems. Every safety feature should be repaired or fixed if it doesn’t work to pass the inspection.
- Wheel/tire tread issues - Check your wheel alignment and tire treads for evenness. Having the engine running is one thing, but the car must also be able to move as one with a clean title would.
- Doors and hood won’t close - The car’s locking mechanisms should also function perfectly. This includes all doors, trunks, and hoods. The last thing anyone wants is the hood popping up while driving down a highway.
- Flood damage - Water damage to a car can be hazardous in the long term. Be aware of any wet carpets and molding-like smells from leaves or sand entering the vehicle. If you’re using an air freshener to mask a scent in your car, there might be some mold and flood damage.
Inversely, there are some things to be wary of, such as insurance coverage restrictions and lasting damages. Finding a buyer with the title can be challenging if you’re looking to sell the rebuilt car.
Buying a salvage title car is a gamble because you can only take it so far before it becomes more expensive than buying a new car. Seriously, compare the costs of a new car with a clean title to fixing a total loss and maintaining it; your results may surprise you.
Insurance Navy helps provide quality, low-cost auto insurance options for all drivers regardless of potential blemishes on their driving histories. Contact Insurance Navy today to get a free quote within minutes. Call 888-949-6289 or get free car insurance quotes online.
