If you own a salvage title car or a rebuilt title car, you may not be aware of whether it can be properly insured. Traditional car insurance policies aren't sold to cover salvage titles, and not every insurance company will want to take the risk to insure even a rebuilt title. Fortunately, with just a bit of effort, you can still get coverage for a rebuilt title car.
An independent insurance agent can make finding rebuilt title insurance easy. They'll make sure you get equipped with all the coverage you need for your vehicle. But for starters, here's a closer look at salvage title vehicles and rebuilt title car insurance.
Key Takeaways - Salvage Title Insurance
Salvage title vehicles cannot be legally driven or insured, so salvage title car insurance doesn't actually exist.
Rebuilt title vehicles can be driven and insured, but coverage options are limited, and many carriers don't offer rebuilt title insurance.
USAA, Progressive, Allstate, and American Family are the best companies for rebuilt title insurance in 2026.
You can convert a salvage title vehicle to a rebuilt title so it can be legally driven and insured.
Working with a local independent insurance agent is highly recommended, as they can shop and compare rebuilt title insurance quotes and policy options from multiple carriers for you to find the best deal.
What Is a Salvage Title Car?
"Salvage title" refers to a vehicle that an auto insurance carrier has declared to be worth less than the cost to repair it, due to extreme damage. According to Keith Griffin, an automotive journalist and president of the New England Motor Press Association, "A salvage title is given to any vehicle that has sustained damage worth 75% or more of its value. For example, if you drive a 2002 Honda Civic worth $9,415 and it suffers $7,061 in damage in a collision, it’s going to be branded with a title stamped 'Salvage.'" Some states call this a "junk title" rather than a salvage title.
Salvage titles are issued by the state when a vehicle's repair costs reach 60%-90% of its total value. However, these threshold limits vary by state. For example, Texas has a 100% threshold, Florida's is 80%, New York's is 75%, and Oklahoma's is 60%.
The salvage title brand stays with the vehicle for the rest of its time on the road, from owner to owner. You cannot change it once it has the brand of a salvage vehicle. This practice is in place to protect consumers from buying a car that may have structural flaws or compromised safety features. In fact, car insurance companies won't write a policy for a salvage title car unless it gets rebuilt and then officially inspected.
Cars may be classified as salvage titles after they've been involved in an accident and totaled, or even after they've been stolen and badly damaged. But the end result is the same: the damage to the vehicle would cost more to repair than the car is worth.
Common Reasons a Vehicle Receives a Salvage Title
The following are the most common reasons a vehicle would receive a salvage title branding:
- Serious damage from an accident or a natural disaster (e.g., hurricane, flooding)
- Has a manufacturing defect
- Has an altered odometer
- Has been stolen and badly damaged, then recovered
Your independent insurance agent can help you insure a salvage title car properly. They know where to find the best salvage title insurance in your area.
Types of Totaled Cars That Qualify for a Salvage Title
The following vehicles most often qualify for a salvage title:
- Collision-damaged cars
- Flood-damaged cars
- Hail-damaged cars
- Stolen cars that have been paid off by insurance and later recovered by law enforcement
- Cars vandalized with spray paint, those that have suffered rolling damage, or those that have major dents and breakages
Any of these situations could cause the car to be proclaimed a total loss. According to the Kelley Blue Book, cars with salvage titles typically have 20% to 40% less value than an equivalent, non-salvaged car. Once you buy the car, have it rebuilt, and pass a state inspection, you can then apply for a “rebuilt title” to drive on public roadways.
What Is a Rebuilt Title Vehicle?
While the term "rebuilt title" varies a bit from state to state, it's generally used to describe vehicles that were once branded as salvage and then underwent repairs or restorations. A rebuilt title car or reconditioned title car still falls under the auspices of the salvage brand, and in most cases, it's a crime to sell a rebuilt vehicle without stating that it was once under a junk or salvaged title.
In most states, a car must pass several inspections to ensure that all safety features work correctly before a vehicle can receive a rebuilt title. A vehicle's rebuilt title history permanently appears in its CARFAX/AutoCheck records. Rebuilt title vehicles have values that are 20%-40% less than a clean-title equivalent.
How to Convert a Salvage Title to a Rebuilt Title
There are a few steps you can take if you'd like to remove a salvage title from your vehicle and convert it to a rebuilt title:
- Complete repairs and documentation: For a salvage title to become a rebuilt title, the first critical step is to have the vehicle repaired. Keep all related documentation to submit to your state.
- Pass a state inspection: Your vehicle will need to be officially inspected to determine its new rebuilt status. These inspections cost an average of $50-$200. Keep a copy of the inspection report if your vehicle passes.
- Submit paperwork to the DMV: Submit any documentation related to the vehicle's repairs and salvage inspection to your local DMV to apply for your rebuilt title.
- Receive the rebuilt title: If your vehicle is approved, you'll receive your rebuilt title. The entire process takes an average of two to eight weeks to complete.
What Are the Disadvantages of Buying a Car with a Rebuilt Title?
Buying a rebuilt title vehicle or repairing a salvage title vehicle to transform it into a rebuilt title can come with various risks. Some of the key disadvantages of rebuilt title cars include:
- Pricey auto insurance
- Reduced vehicle value
- Increased difficulty in finding enough auto coverage
- Difficulty securing auto loans
- Permanently listed on the vehicle's CARFAX record
- Difficulty reselling the vehicle
Not all insurers are willing to insure rebuilt title vehicles. Make sure to consider this potential drawback when determining if a rebuilt title vehicle is a good choice for you.
What Is Salvage Title Insurance? (And What It Isn't)
Salvage title car insurance isn’t a type of auto coverage. In fact, salvage titles cannot be driven on roadways and cannot be insured at all. You must repair the vehicle sufficiently to obtain a rebuilt title in order to legally drive and insure it. Salvage title insurance is not a distinct product.
Salvage title insurance, which is really rebuilt insurance, is simply car insurance applied to a vehicle with a rebuilt title. Most insurance companies will sell you a basic liability insurance policy for your rebuilt title automobile. This is reasonable when you consider that the car passed a state registration inspection. Plus, you are not at a higher risk of hitting another driver because your car has a rebuilt title.
Can You Insure a Salvage or Rebuilt Title Car?
A rebuilt title car can be insured. But if you've been asking, "Can you get full coverage insurance on a salvage title?" the answer is no. It's not possible to insure a salvage title vehicle at all. There is no way you can get car insurance for a salvage title vehicle.
However, if you've been asking, "Can you get full coverage on a rebuilt title?" the answer is yes, but with a caveat. Rebuilt titles can be difficult to insure because not all car insurance companies want to take the risk of offering a full coverage policy for a rebuilt title car. But with the help of an independent insurance agent, you can easily find rebuilt title insurance in your area.
| Vehicle Title | Full Coverage Available? | Minimum Coverage Available? |
|---|---|---|
| Salvage | No | No |
| Rebuilt | Yes | Yes |
Another option is to just get liability coverage. Liability is the easiest policy to buy for your rebuilt title auto. Liability insurance will safeguard you when an accident happens, and you’re at fault. Adding comprehensive insurance and collision insurance to your coverage is possible, but it can be a bit more complicated. Again, an independent insurance agent can help you find the coverage you need.
Coverage Availability for Clean Titles vs. Salvage and Rebuilt Titles
The type of car insurance coverage you can get for your vehicle depends on the type of title it has. You're also not legally allowed to drive junk titles or salvage titles on the road. The table below demonstrates driving eligibility and coverage options by vehicle title.
| Car Title | Can It Be Legally Driven on the Road? | Liability-Only Coverage Available | Full Coverage Available? | Is It Financeable? |
|---|---|---|---|---|
| Clean Title | Yes | Yes | Yes | Yes |
| Salvage Title | No | No | No | No |
| Rebuilt Title | Yes | Usually | Sometimes | Sometimes |
| Junk Title | No | No | No | No |
How Much Does Rebuilt Title Insurance Cost?
There's typically a 20%-40% surcharge added to your auto insurance premium if you insure a rebuilt title vehicle. So, if you've been asking, "Does a rebuilt title affect insurance rates?" the answer is yes, but the rebuilt title insurance surcharge percentage varies by insurer. Your independent insurance agent can help you learn more about how to insure a car with a rebuilt title through your carrier.
So, does a salvage title affect insurance costs? Keep in mind that salvage titles cannot be insured or legally driven on roadways at all. For vehicles that can be insured, auto insurance costs are based on factors such as the car’s year, make, and model.
Of course, the driver’s record has a big influence on the final premium, too. This is no different for rebuilt title cars. Even though your vehicle’s value has been downgraded, you shouldn't expect to receive a special discount. On the contrary, many insurance companies add a surcharge when the insured vehicle has a rebuilt title due to the increased risk factor. An independent insurance agent will be able to secure a variety of rebuilt title insurance quotes and give you the best pricing options.
Factors that affect your rebuilt title insurance premium
Like many people, you're likely wondering how to get cheap car insurance for your rebuilt title. Several factors can affect your rebuilt title vehicle's auto insurance premiums, including the following:
- Prior damage type
- Repair quality
- Vehicle age
- Vehicle value
- Driver record
- State minimum coverage requirements
- Credit score (where allowed)
A local independent insurance agent can help you find the most affordable rebuilt title insurance in your area.
What Insurance Companies Cover Rebuilt Titles in 2026?
It's not possible to insure a salvage title vehicle, but you can sometimes find coverage for a rebuilt title car. So, while you won't find a list of salvage title insurance companies, you can find one for rebuilt title insurance.
However, it’s been estimated that 20% to 30% of car insurance companies won't offer rebuilt title insurance. But if you know where to look, you can still find the coverage you need for your rebuilt title car. The table below can help you compare car insurance for rebuilt titles by carrier.
| Top Car Insurance Companies | Full Coverage Available? | Minimum Coverage Available? | Special Requirements |
|---|---|---|---|
| Progressive | Yes, but limited | Yes | Vehicles must undergo case-by-case underwriting reviews |
| Allstate | Yes, but limited | Yes | Agent consultation required before approval |
| American Family | Yes, but limited | Yes | Availability varies by region |
| USAA | Yes | Yes | Only available to military members, veterans, and their families |
These top-rated car insurance companies offer coverage for rebuilt titles. An independent insurance agent can help you secure a policy from one of these outstanding carriers.
How to Save Money on Rebuilt Title Insurance
There are a few ways you can save money on your rebuilt title auto insurance, such as by trying any of the following easy tips:
- Bundle your auto insurance with home insurance or another policy to save 15%-25%.
- Ask about good driver discounts if you have a clean record.
- Complete an approved defensive driving course to earn a 5%-10% discount.
- Insure multiple vehicles on the same policy to earn savings of up to 35%.
- Ask about a low-mileage discount if you drive fewer than 7,500 miles per year.
- Ask about safety feature discounts if your vehicle is equipped.
- Improve your credit score if you live in a state where credit is allowed as a rating factor.
- Switch to minimum coverage if you drive an older or low-value vehicle.
Your independent insurance agent can also help you save as much money as possible on your car insurance.
What Documentation Do You Need to Insure a Rebuilt Title Car?
Car insurers will probably ask you to submit copies of the following documents before issuing a policy for a rebuilt title:
- Rebuilt title document
- State vehicle registration
- Vehicle Identification Number (VIN)
- Mechanic’s report or appraisal
- Photos of the vehicle (required for full coverage)
- Original repair estimate from the rebuilder
- Phone quotes, not online quotes, are required by most carriers
The insurance company may perform its own inspection as well. In addition, the car insurance company may review the resources below to learn more details about your rebuilt title:
- The National Insurance Crime Bureau (NICB) to confirm the vehicle is listed as having a salvage or rebuilt title
- The National Motor Vehicle Title Information System (NMVTIS) for a review of the vehicle history and condition
- CARFAX when verifying the vehicle’s history and condition
If you have any further questions about the process of insuring your rebuilt title, contact your independent insurance agent.
Title Washing: A Fraud Warning for Salvage Car Buyers
"Title washing" refers to the illegal act of re-registering a vehicle in another state to obtain a clean title. This process is illegal in all states. It's critical to check your vehicle's VIN through NICB or CARFAX before you buy it. A vehicle's salvage history is permanent.
Should You Buy a Car with a Rebuilt Title?
It depends on a few factors. First, consider whether this vehicle will be your daily driver or a secondary car. You might not want a rebuilt title as your everyday commute vehicle. Whether you want to buy a rebuilt title should also depend on the repair quality of the specific car. Buying a rebuilt title that's undergone a shoddy repair job can end up costing you a lot more in the long run.
Also, consider if your insurance company will offer at least your state's minimum required coverage for a rebuilt title vehicle. Overall, buying a rebuilt title might lead to higher long-term costs if you need to schedule more repairs than you would for a vehicle with a clean title. It can also be much more difficult to resell a rebuilt title than a clean title.
FAQs About Salvage and Rebuilt Title Car Insurance
Can you insure a car with a salvage title?
No. Salvage title vehicles cannot be legally driven or insured. The vehicle must receive a rebuilt title after undergoing repairs and passing a state DMV inspection before it can be legally insured and driven.
How much more does rebuilt title insurance cost than clean title insurance?
Usually 20%-40% more. This adds about $180-$480 per year, on average. Minimum liability coverage for a rebuilt title vehicle starts at $55 per month. Some insurers add a flat 20% surcharge on rebuilt title insurance.
What insurance companies offer full coverage for rebuilt titles?
Many carriers don't offer full coverage for rebuilt titles. However, Progressive and Allstate offer limited case-by-case full coverage for rebuilt titles. Most carriers offer only liability coverage.
How do you convert a salvage title to a rebuilt title?
You'll need to fully repair the vehicle, pass a state inspection, submit relevant paperwork to your local DMV, apply for the rebuilt title, and then wait to receive it if you're approved. The average timeline for the full process ranges from two to eight weeks.
Can a salvage title ever become a clean title?
No, this is illegal in every state. A vehicle carriers its salvage history in CARFAX?AutoCheck/NMVTIS permanently, so beware of illegal title washing fraud. The only thing you can do is convert a salvage title to a rebuilt title.
Is it worth buying a car with a rebuilt title?
It can be, if your savings will outweigh the costs. Rebuilt titles sell for 20%-40% of the market value less than a clean-title equivalent. Consider several factors when making the decision to buy a rebuilt title, such as higher insurance costs, limited financing options, reduced resale opportunities, and required coverage limits in your state. Rebuilt titles can be a better option for a secondary or occasional-use vehicle, rather than a daily commuter car.
What documentation do you need to get insurance on a rebuilt title?
You typically need your rebuilt title certificate, state registration, VIN, certified mechanic report, vehicle photos, and original repair estimate. Some insurers require photos of the vehicle as pre-loss baseline for full coverage.
The Benefits of Working with an Independent Insurance Agent
Independent insurance agents are experts at insuring vehicles of all kinds, including rebuilt titles. They'll make sure you get set up with all the car insurance you need to fully protect your rebuilt title. Your agent can get phone quotes from multiple carriers for you, so you don't have to put in the extra effort to insure your rebuilt title. And since they shop and compare policy rates and options from multiple carriers for you, they'll also make sure you walk away with the best blend of coverage and cost.
Sources
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https://www.moneygeek.com/insurance/auto/can-i-insure-a-car-with-a-salvage-or-rebuilt-title/
https://www.valuepenguin.com/how-get-car-insurance-salvage-title#rebuilt
https://auction.ridesafely.com/remove-salvage-title-get-rebuilt-title/