Can You Insure A Car With A Salvage Title?

Thinking about buying a salvage car because it’s a steal? Or maybe your own car was slapped with a salvage title after an accident, and now you’re left wondering: Can I insure it, or am I about to face a whole new set of headaches and costs? If you’re worried about protecting your wallet (and your ride), you’ve come to the right place.

Insuring A Salvage Car: What You Need to Know

Insuring a salvage car is not as simple as insuring a vehicle with a clean title. A salvage title means the car was declared a total loss by an insurance company due to significant damage from an accident, flood, or theft. While these vehicles can be repaired and returned to the road, insurance companies view them as high risk. This makes finding coverage more challenging, and the options you do find may be more limited and expensive than you’d expect.

Insuring a salvage title car usually starts with getting the vehicle inspected and rebranded as a ‘rebuilt title’ car. Only then will most insurers even consider offering coverage. Even so, not all insurance companies are willing to provide policies for salvage or rebuilt vehicles, and those that do may only offer basic liability coverage.

Is It Possible to Insure a Car With a Salvage Title?

If your car has just been issued a salvage title, or you’re thinking about buying a salvage title car, you’re probably asking: Is it possible to insure a car with a salvage title? The answer is yes–but with important caveats.

When a car is declared salvage, your existing insurance policy has most likely been canceled, since it was considered a total loss. If you repair the car and it passes a state inspection, it can be issued a rebuilt title, which makes it eligible for insurance again. However, most insurers will only offer liability coverage, and obtaining full coverage (comprehensive and collision) is rare and comes with strict limitations.

If you’re purchasing a salvage title car, you’ll need to:

• Complete all necessary repairs.
• Pass a state-mandated inspection to obtain a rebuilt title.
• Provide documentation of repairs and inspection to your insurer.

Be prepared for higher premiums and fewer coverage options. Some insurers specialize in salvage vehicle insurance, so it’s worth shopping around.

Buying a Salvage Title Car: Insurance Challenges and Solutions

Buying a salvage title car comes with unique insurance challenges. The main hurdle is convincing an insurer that the car is safe and roadworthy. Most states require a thorough inspection before you can register and insure a rebuilt salvage car. You’ll need to provide detailed documentation of all repairs, and some insurers may want photographs or even their own inspection.

Insurance options for salvage title cars are limited. Many large insurers will only offer liability coverage, which meets state legal requirements but won’t protect your investment if the car is damaged again. Some smaller or specialized insurers may offer broader coverage, but this is the exception rather than the rule.

If you’re considering buying a salvage title car, do your research ahead of time. Contact insurers before you buy to see what coverage is available and what documentation they’ll require.

How Much Does Salvage Car Insurance Cost?

Insuring a salvage car is almost always more expensive than insuring a similar car with a clean title. Insurance companies see salvage vehicles as higher risk, both because of their history and the potential for hidden damage. As a result, premiums can be 20–50% higher than for a comparable clean-title car.

The actual cost of salvage car insurance depends on several factors:

• The car’s value after repairs.
• Your location and state regulations.
• The insurer’s policies regarding salvage vehicles.
• The extent and quality of repairs.

Keep in mind that if your salvage car is totaled again, the payout will be based on its diminished value and not its pre-accident worth.

What Coverage Can You Get for a Salvage Title Car?

Coverage options for salvage title cars are limited. Most insurers will only offer liability insurance, which is required by law if you plan to drive the car on public roads. Comprehensive and collision coverage are rare, and when available, they come with strict conditions and exclusions, especially for any future claims related to the original damage.

If you want more than basic liability, you’ll need to:

• Ensure the car passes a rigorous inspection.
• Provide thorough documentation of repairs.
• Shop around for insurers willing to offer broader coverage.

Even then, expect exclusions and limitations. Always read your policy carefully and ask your insurer to clarify what is and isn’t covered.

State Laws: Do Salvage Title Cars Need to Be Insured?

Whether or not you need to insure your salvage title car depends on how you plan to use it and your state’s laws. If you want to register the car and drive it on public roads, you’ll need at least the minimum liability insurance required by your state. If the car is being stored and not driven, insurance typically isn’t required, but you won’t have any protection against theft or if damage occurs during storage.

State regulations vary, so it’s important to check with your local DMV. Some states have specific requirements for insuring and registering rebuilt salvage vehicles, including additional inspections or documentation.

Tips for Getting Salvage Title Car Insurance

Finding insurance for a salvage title car can be challenging, but it’s not impossible. Here are some steps to improve your chances and potentially save money:

• Start by gathering all documentation related to the car’s repairs and inspections.
• Reach out to multiple insurers, including those that specialize in salvage or rebuilt vehicles, and be prepared to answer questions about the car’s history. 
• If you’re only planning to drive the car occasionally, ask about limited-use or storage policies, which can sometimes be more affordable. 
• Don’t forget to compare quotes to ensure you’re getting the best possible deal.

If you’re struggling to find coverage, consider working with an independent insurance agent who has experience with salvage vehicles. They can help you navigate the process and find insurers willing to work with your unique situation.

FAQs: Salvage Cars and Insurance

Q: Can a salvage title car be insured?
A: No, you cannot insure a car with a salvage title. Once the car is repaired, inspected, and issued a rebuilt title, liability coverage is available.

Q: Can I get full coverage on a salvage title car?
A: No, you can’t get full coverage (comprehensive or collision) on a car with a salvage title. However, once the car has been issued a rebuilt title, some insurers may offer comprehensive and collision coverage, although options are limited, and restrictions or higher premiums often apply.

Q: Is insurance required for a salvage title car?
A:Not necessarily. If you plan to drive it, yes. If it’s not registered or driven, insurance may not be required.

Q: What documentation will I need?
A: You’ll need proof of repairs and a passed inspection for a rebuilt title.

Final Thoughts

You can’t insure a car with a salvage title, but once it’s repaired and given a rebuilt title, insurance becomes possible–expect fewer options and higher rates. If you’re buying a used car with a rebuilt title, the same rules apply. Do your homework, compare quotes, and know what you’re getting into before you hit the road.