Sunday, May 26, 2024

Best Insurance Companies for Cars with Salvage Titles

Finding insurance can be tough if your car has a salvage title. However, some insurers specialize in covering rebuilt cars that formerly had salvage titles.

Some of the best and biggest car insurance companies that offer insurance for cars with rebuilt titles include USAA, GEICO, State Farm, Progressive, and other leading insurers.

You may need special insurance if your car has a rebuilt title or salvage title. Here are some of the best insurance companies for cars with salvage titles.

What Is a Salvage Title?

Cars that were declared a total loss or involved in an accident may receive a salvage title.

If a car is declared a total loss after an accident, for example, the insurer might take possession of the vehicle and pay the policyholder the value of the vehicle. Then, the insurer auctions the car in a salvage auction, and anyone can buy the car. The car now has a salvage title, which means it has significant damage.

You cannot insure a car with a salvage title. Cars with salvage titles are not safe to drive. They often have serious damage, and they’re not considered roadworthy.

However, if you rebuild a car with a salvage title car and make it roadworthy, then you can get insurance for that vehicle. In this situation, the vehicle has a rebuilt title, and you can buy insurance for that vehicle.

You Must Obtain a Rebuilt Title to Buy Car Insurance

You cannot buy insurance for a car with a salvage title. Instead, you can only buy insurance for cars with rebuilt titles.

To receive a rebuilt title, a professional must repair your vehicle and complete regulatory safety inspections. If the professional verifies the car is safe to drive, then the title can be changed to rebuilt status. That means the car can safely be driven on public roads again.

Before driving a rebuilt title car on public roads, you need to buy car insurance for that vehicle. Many insurers offer insurance for rebuilt title cars.

How Rebuilt Title Car Insurance Works

Rebuilt title car insurance works differently than ordinary car insurance, which is why some companies do not offer insurance to cars with salvage titles or rebuilt titles.

Insurance companies may only provide liability insurance to cars with rebuilt titles, for example, and they may not provide collision or comprehensive coverage. That means your insurance protects other people you may injure in an accident, but it does not cover damage to your own vehicle.

However, insurance for rebuilt title cars varies between companies. Some companies offer full coverage car insurance, while others avoid offering rebuilt title car insurance entirely.

Most of America’s largest insurance companies offer insurance for cars with rebuilt titles. GEICO, State Farm, Progressive, and other market leaders all offer rebuilt title car insurance, for example.

The Best Insurance Companies for Cars with Salvage Titles

You cannot buy car insurance for a car with a salvage title. However, you can buy car insurance for cars with a rebuilt title.

In fact, buying car insurance for a car with a rebuilt title is similar to buying car insurance for any vehicle. Although the insurance policy itself is different, you may work with the same major providers – like GEICO, State Farm, and other leading insurers.

Some of the best and biggest companies offering insurance for rebuilt title cars include:

State Farm and GEICO are the two largest car insurance companies in the United States. They also offer some of the cheapest prices in the country. Although they have average reviews for claims satisfaction and customer service, these companies offer decent rebuilt title car insurance at fair prices.

If you qualify for USAA membership, then USAA may be the best rebuilt title car insurance provider. USAA offers some of the best prices and best claims satisfaction ratings in the United States.

How to Buy Rebuilt Title Car Insurance

If you have a rebuilt title car and want to buy the best insurance possible, then consider the following:

Compare Quotes from Multiple Providers: Whether you’re insuring a car with a rebuilt title or an ordinary title, it’s important to compare quotes from multiple providers. The more quotes you get, the better of an idea you get for the average price of rebuilt title car insurance. Some of the above companies may charge a fortune for rebuilt title insurance because they know you have few options, while others are surprisingly affordable.

Consider Classic Car Insurance: Some classic cars have rebuilt titles. They’re perfectly restored and safe to drive, but they have rebuilt titles because they were previously involved in a loss before being repaired. In this situation, you may want to compare classic car insurance quotes. Some companies beyond those listed above offer classic car insurance, for example, to protect your vehicle. As long as the insurer knows you have a rebuilt title classic car, you should be able to buy classic car insurance.

Provide the Insurer with Additional Documentation: Your insurer may need before-and-after photos of your vehicle and documents proving your vehicle is safe to drive. Unlike ordinary car insurance, rebuilt title insurance is for cars that were previously involved in a serious accident. For example, insurers need to verify what damage is pre-existing to provide you with an accurate estimate on insurance premiums. Insurers may request statements from mechanics, for example, a repair estimate from the original owner, or photos and videos of the vehicle before providing insurance.

Be Prepared to Switch Insurers: Some of America’s largest insurers offer rebuilt title car insurance. However, others avoid offering rebuilt title car insurance. You may be rejected if you try to buy rebuilt title car insurance from your current provider. You may need to switch providers or buy insurance from a separate company for your rebuilt title vehicle.

How Much Does Rebuilt Title Car Insurance Cost?

According to our research, the average rebuilt title car insurance policy costs around $114 per month or around $1,368 per year.

Rebuilt title car insurance tends to be more expensive than liability-only car insurance policies but cheaper than full coverage policies.

Most rebuilt title insurance policies only include liability coverage, as insurers are hesitant to provide full coverage car insurance (which includes collision and comprehensive coverage to protect your own vehicle).

The cost of rebuilt title car insurance varies widely based on location, state insurance laws, driving history, and other factors. Some drivers pay as little as $500 per year for rebuilt title car insurance, while others pay over $2,000.

Other Frequently Asked Questions

How does a salvage title affect insurance?

Vehicles with salvage titles cannot be legally driven on public roads, so you cannot purchase insurance for a car with a salvage title. You can buy insurance for a car with a rebuilt title, although that insurance may not include comprehensive and collision coverage.

How much does a salvage title increase insurance?

Cars with a salvage title cannot be covered by insurance. However, cars with a rebuilt title cost $1,200 to $2,000 per year for liability-only coverage.

How do you get a salvage title cleared?

You can clear a salvage title by repairing a vehicle to a point where it passes an inspection. After passing multiple inspections and paying the requisite DMV fees, you can switch your car to a rebuilt title from a salvage title.

How much does a salvage title devalue a car?

Salvage titles tend to make a car 20% to 40% less valuable, on average, according to Kelley Blue Book.

How do you register a salvage title?

You register a salvage title by contacting the DMV and providing the original title certificate, the bill of sale for the car, a valid driver’s license or ID, and payment for the required title fees.

How do you turn a rebuilt title into a clean title?

You cannot legally turn a rebuilt title into a clean title. Despite what some online rumors state, there is no possible way to turn a rebuilt title into a clean title.

Final Word on the Best Car Insurers for Cars With Salvage Titles

No car insurance company in the United States offers insurance for cars with salvage titles.

However, many insurers offer insurance for cars with rebuilt titles. If you repair a car with a salvage title, then it may get a rebuilt title. In this situation, you can buy rebuilt title car insurance from major providers like GEICO, State Farm, Progressive, and The Hartford, among other well-known insurers.

To learn more about rebuilt title car insurance or to find the best salvage title car insurance today, check any of the providers listed above.


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