How Does a Rebuilt Title Affect Your Car Insurance?

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Written by Michelle Lambright Black Edited by Nick Versaw

Updated February 21, 2024

Some insurance companies may be willing to cover vehicles that have rebuilt titles. Depending on the insurer, you may be able to purchase a car insurance policy with liability insurance, and some companies may even offer you full coverage if you have a rebuilt title.

That being said, it’s typically more expensive to insure a car with a rebuilt title. You may also have a harder time finding insurers that offer coverage for these vehicles.

So if you’re in the market for a new car, it’s typically easier and cheaper to get insurance coverage on a vehicle with a clean title.

Discover how salvage and rebuilt titles could affect your insurance rates, find insurance companies that might be willing to insure a vehicle with one, and learn other helpful tips related to these types of cars.

Can You Get Insurance for a Salvage or Rebuilt Title Car?

Unfortunately, it’s nearly impossible to get insurance for a car with a salvage title. Most car insurance companies won’t offer even basic liability insurance for a vehicle in this condition.

But if you have a car with a rebuilt title, you should have more options. More insurance companies may be willing to insure these types of vehicles. But in some cases, liability insurance may be your only option for a vehicle with a rebuilt title.

Other car insurance companies might be willing to offer you comprehensive or collision insurance on certain vehicles, but you shouldn’t expect the best rate if you have a rebuilt title.

Salvage title vs. rebuilt title: What’s the difference?

A vehicle’s title contains important details about its history — especially when you’re buying a used car. If a vehicle has a salvage or a rebuilt title, it means it’s experienced extensive damage at some point in the past. In fact, the damage was so severe that an insurance company deemed the vehicle a total loss.

Let’s take a closer look at the difference between a salvage title and a rebuilt title.

Salvage title

A vehicle can become a salvage title vehicle for a few different reasons. For example, if you get into a major accident and an insurance adjuster determines that the cost of fixing your car is more expensive than its market value, your insurer may total the car and designate it as a salvage vehicle.

Another scenario that might lead to a salvage title is vandalism or theft. Again, if you or the police recover the car and an adjuster finds it has enough damage to total it, your vehicle may be given a salvage title.

Rebuilt title

When you put in work to repair a vehicle with a salvage title, it may eventually qualify for a rebuilt title. A rebuilt vehicle must pass inspection by a local or state motor vehicle agency to confirm that it’s safe to drive on public roads.

But even if it’s totally fixed, the rebuilt title designation remains to warn potential buyers that the vehicle had extensive repairs and was at one point declared a total loss.

How Does Having a Rebuilt Title Affect Your Insurance Rates?

Buying a car with a rebuilt title could save you a significant amount of money on the purchase price. But it’s important to keep in mind that you’ll likely pay higher rates on your car insurance when you purchase a rebuilt vehicle. The addition of higher premiums could offset your potential savings and put a strain on your monthly budget, especially if you plan on owning the car for a long time.

Insurance premiums can vary depending on your insurer, vehicle, location, and other factors. Even so, it’s not unusual to pay as much as 20% more for car insurance on a rebuilt-title car compared to one that has a clean title. Insurers typically charge more to offset the added risk associated with these types of vehicles.

How to Get Car Insurance with a Rebuilt Title

When you purchase a car with a rebuilt title, you’ll have to purchase at least the minimum insurance your state requires before you can legally drive it. Driving without car insurance could result in fines, points on your driver’s license, and even possible jail time.

Before you buy rebuilt-title car insurance, it’s a good idea to shop around and compare quotes from multiple insurance companies.

You should also understand that the car insurance shopping and purchasing process will be different in this situation than it would be if you were buying traditional car insurance for a vehicle with a clean title.

For example, you may have to provide proof that your vehicle has passed a state inspection to qualify for coverage. Your insurer might even request additional information, like your vehicle’s maintenance record, in order to offer you a policy.

Insurance companies that cover rebuilt-title cars

Several large insurance companies won’t deny coverage just because a car has a rebuilt title. But whether you’re able to find an insurer that’s willing to cover your rebuilt-title car is largely a case-by-case situation.

Some insurers may require an in-person inspection for these types of vehicles before they’re willing to offer you a policy. Others may offer only liability car insurance on rebuilt-title cars, but not comprehensive, collision, or full-coverage insurance. And there may be other outside regulations or company-specific stipulations you’ll need to satisfy to set up coverage for a rebuilt-title vehicle as well.

Some of the better-known car insurance companies that may cover rebuilt-title cars include State Farm, Progressive, and GEICO. Although you can likely find rebuilt-title insurance with one of these auto insurance companies (or possibly others), the type of coverage you’re able to purchase depends on the insurer you choose, your vehicle, the type of damage that occurred, and the extent of repairs. Your specific coverage needs will also come into play.

Your best bet in this situation is to shop around and compare multiple coverage options to see what’s available. Reaching out to your insurance agent could be a good place to start. You could also consider speaking to a customer service agent from your current insurance company to start a quote.

FAQs About Rebuilt Titles and Auto Insurance

Finding coverage for a car with a rebuilt title can be a tedious process. To help you get started, we’ve answered some of the most common questions about insuring rebuilt-title cars.

Can you get insurance on a car with a salvage title?

Most likely, no. It’s almost impossible to find an auto insurance company that’s willing to offer coverage for a vehicle with a salvage title. These vehicles are often deemed unsafe to drive on public roads without significant repairs.

Is insuring a car with a rebuilt title more expensive?

Yes, it’s usually more expensive to insure a car that has a rebuilt title. You can typically save money when you buy a car with a rebuilt title, but the trade-off is that you’ll pay higher premiums on your car insurance — sometimes rates that are as much as 20% higher (or more) compared to a similar vehicle with a clean title.

Are rebuilt-title cars harder to insure?

Yes. Not all auto insurance companies are willing to cover cars with rebuilt titles. Also, you may be able to find only certain types of insurance coverage (e.g., liability only) for these vehicles, depending on the insurance company.

Does Progressive insure rebuilt titles?

Yes, Progressive covers cars with rebuilt titles, but only in certain situations. If you want to know whether Progressive will insure your rebuilt-title car, you’ll need to reach out to a customer service representative to review your specific situation and see whether you and your vehicle qualify for coverage.

Can you insure a rebuilt title in Georgia?

It depends. Although you can’t insure a vehicle with a salvage title in Georgia, once you repair the vehicle and it passes inspection to qualify for a rebuilt title, the story changes. Vehicles that have passed the rebuilding inspection in Georgia may qualify for a new license plate, and it’s possible to receive insurance coverage on these cars if you can find an insurance company that’s willing to cover you.

Sources

Chase, “Buyer beware: What is a rebuilt title?,” accessed February 9, 2024.

Michelle Lambright Black Personal Finance Writer

Michelle Lambright Black is a credit expert, freelance writer, and founder of CreditWriter.com. She has more than 20 years of experience writing and speaking about credit and money, and focuses on helping families and small business owners make smart, informed decisions about their credit, money, and financial products (including insurance). Michelle's work has appeared in publications such as Yahoo! Finance, Reader's Digest, Parents, FICO, Forbes, Bankrate, The Seattle Times, MarketWatch, BuySide from Wall Street Journal, USA Today, and more.