Can You Insure a Rebuilt Title

Can you insure a rebuilt title or they don't do that? If you own a rebuilt title car or plan to buy one, this article is for you.

Before getting to it, we try to explain what a rebuilt title is and the difference between a rebuilt title and a salvage title. Which one is better to buy?

Let's get to the answers:

  • What is a Rebuilt Title

  • What are Different Titles of Cars

  • What are Pros and Cons of Having a Rebuilt Title

  • Can You Insure a Rebuilt Title

  • How to Get Rebuilt Title Car Insurance

  • Final Thoughts on Can You Insure a Rebuilt Title

What is a Rebuilt Title?

Suppose a natural disaster, vandalism, theft, or an accident has caused your auto insurance company to declare your vehicle a total loss. In that case, it doesn't necessarily mean it's the end of the road for your vehicle.

In many instances, cars that have been written off by insurance providers are retired from use, never to hit the road again. But this isn't true in all cases. In certain situations, if they rebuilt a salvaged car, it can return to duty as a source of daily transportation.

If a car has had an everyday life, meaning that it's never been in a severe accident, never had the odograph rolled back, and was never repurchased by the manufacturer because of a defect, they say it has a clean title.

Clean title is free of any title brands that denote special status and warn buyers of a possible problem with the vehicle.

If a given vehicle has been in a severe accident and is totaled, meaning a total loss because of accident damage by an insurance company. In that case, they replace their clean title with a salvage one. The salvage title lets buyers know that there has been an accident and that the car may not be safe to drive.

Once they fix a vehicle after earning a salvage title, they give it a rebuilt title. In many cases, a rebuilt title is only provided after the car has been totally fixed, and only after it gets inspected by the organization that issues titles for cars.

If the repairs were satisfactory to that jurisdiction, to reflect the repairs that were performed and note that the car is now fixed, they would change the salvage title to rebuilt.

What are Different Titles of Cars

Before buying a car, you should determine if the given vehicle has a clean, salvage, or rebuilt title. Often, you can decide which type of title a car has by the title's color. However, the color designations vary by different countries.

In many countries, it's like this:

  • A green-color title is clean;

  • A blue-color title is a salvage;

  • And finally, an orange-color is rebuilt salvage.

You typically can't purchase a salvage car, unless you're authorized to do so. But you can buy a rebuilt salvage from any private seller.

As mentioned earlier, the rebuilt title is different from a salvage title. It shows that, though the car was previously declared a salvage, it has passed the necessary qualifications to be driven in your state.

There's nothing inherently wrong about a vehicle with a rebuilt salvage title, and many are reconstructed to the factory standards. The rebuilds quality can be hard to determine unless you're quite familiar with cars.

Since each country has its standards for a rebuilt title status, it's essential to get your inspection done. Some states don't require tests beyond checking for ordinary parts and basic functionality of the car.

A reliable mechanic can help you understand if there are any significant problems with the car, or if it's road-ready. So if you have such a car in your hand, it's better to visit a mechanic first.

It's common for cars with reconditioned or restored titles to have a subtle number of refurbished parts, but there shouldn't be concern as long as the pieces are in good condition, and none are missing.

What are Pros and Cons of Having a Rebuilt Title

Buying a previously-damaged car can be a risky move, but it could also be a smart move if you know what you're doing. One pro of vehicles with a salvage or rebuilt title is that they generally cost much less than cars with clean titles.

According to a study in this matter, salvage or rebuilt vehicles typically cost 20 to 40% less than the same type of vehicle with a clean title. Isn't it a great advantage to buying a rebuilt title car?

On the other hand, buying a car with a rebuilt title can lead to more long-term costs if the repairs were not up to par. When you buy a salvage reconstructed vehicle, you're accepting that extensive damage has occurred to the car.

In some cases, there may still be unseen or even undisclosed damages that could arise someday. As said earlier, it's better to have a mechanic take a look at the car you want to buy.

Likewise, even if the given car has been fully repaired, you may have trouble finding insurance for it. In many cases, those carriers who insure vehicles with a rebuilt title will charge the same premium as a clean title car, even if your vehicle is worth much less.

Can You Insure a Rebuilt Title or a Salvage Title?

As mentioned earlier, compared to vehicles with clean titles, the same car with a rebuilt title could have up to 40% less value because it underwent significant damage, and not everyone buys such a car!

Of course, you can legally buy or sell a vehicle with a salvage title. Still, it's generally illegal to drive these cars on the road, so it's not possible to obtain car insurance on a salvage vehicle unless it's to or from a reliable vehicle inspection site.

If your car has a rebuilt title, the situation changes. It's legal to drive a vehicle with a rebuilt title, and some insurance companies offer coverage for these cars, but not all providers offer coverage for cars that once had a salvage title. Among those that do, coverage options may be limited, and full coverage may not be possible.

Companies that write insurance policies for vehicles with rebuilt titles tend to offer liability insurance. It's harder to find an insurance provider that will provide the owner the option of adding on comprehensive and collision coverage.

How to Get Rebuilt Title Car Insurance

Some insurers won't cover rebuilt title cars, even if you want liability insurance, so maybe you have to shop around with multiple carriers. Here we have some suggestions that may be useful for your quest.

If you want full-coverage insurance, with comprehensive coverage, you'll need to contact several insurers to get different quotes:

  • When shopping for rebuilt car insurance, it's suggested to compare at least three to four quotes;

  • Not every company will charge more for rebuilt title vehicles, but some of them will add a surcharge of up to 20%;

  • If the amount that you're paying for car insurance is more than the amount you saved by purchasing a rebuilt car, then you may want to reconsider your decision.

Once you've found a reliable insurer that will cover rebuilt salvage cars, you should typically provide them with the following to get a quote and then purchase a policy:

  • Certified mechanic's statement: Most insurers want this to verify that the car is in good working order;

  • Photos of your car: Pictures of your vehicle and video, in some cases, will be necessary if you want full coverage insurance. The images act as "before" images that the insurer can compare damage to if you make a claim;

  • Your car's original repair estimate: When you buy a rebuilt title car, the initial repair estimate should be given to you because it details the damages and improvements made to the vehicle. You can provide the insurance company proof that all damage has been repaired by getting the original repair estimate from the rebuilder or the insurance company that totaled the car.

To answer, Can you ensure a rebuilt title or not, should say first you have to search for a reliable insurance company that insures rebuilt cars, but once you found one and provided the above documents, you're good to go.

Final Thoughts on Can You Insure a Rebuilt Title

Can you insure a rebuilt title or no, is the question we tried to answer in this article. First, we explained different aspects of rebuilt titles and then talked about insurance companies and their policies regarding rebuilt titles.

Vehicles with salvage titles have been declared a total loss, so you can't drive them on public roads, and you can't purchase insurance for them. However, once they refurbish, fix, and test it, it can qualify for a rebuilt title, meaning it can be registered, driven, and even sold.

The insurance fee is vital here. So if the amount you're paying for insurance is more than the amount you saved by purchasing a rebuilt car, you may want to reconsider your decision.

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