Once a vehicle is no longer drivable, it is most likely not possible. However, it is possible to get car insurance for a vehicle with a salvage or rebuilt title. If you’ve been wondering what steps to take to get car insurance for a salvage or rebuilt title, you are in the right place.
In this article, we will give a detailed and comprehensive explanation of how to get car insurance for salvage or rebuilt title and other useful information that would help increase your knowledge regarding this subject matter.
What is a Salvage or Rebuilt Title?
Generally, salvage tittles are issued to cars that suffered total loss during an accident. Cars will receive salvage title from insurance companies if the cost of repair and other value exceeds the pre-damage value.
There are several factors that insurance companies use in determining whether a car is totally at risk. Some of the factors include:
- If the damage is severe.
- If the vehicle was stolen and the remains were uncovered.
- If the amount of damage done to the car is beyond the car’s value, ranging between 60% and 90%.
On the other hand, a rebuilt title is issued for cars that have a salvage title but have been repaired over time and are considered eligible for car insurance after passing all the state-required inspections, signifying that the car has been insured and is worth driving.
Companies That Offer Rebuilt or Salvage Title Insurance
There are a variety of companies that offer car insurance for salvage or rebuilt title. Once your vehicle has been inspected and repaired, you can get car insurance from any of the following companies:
- State Farm
- American Family
- Farmers
- Infinity
- Kemper
- Root
- USAA
Kindly note that USSA is only available to individuals in the military as well as their dependents. Beyond the ones mentioned above, there are other companies that offer rebuilt or salvage title insurance. So, you can shop around and decide on the one that aligns with your needs and interests.
How to Get Insurance for a Salvage or Rebuilt Title
If you’re wondering what steps to take when in need of auto insurance that offers coverage for salvage or rebuilt tile, worry less; we got you. Highlighted below are steps on how to get insurance for salvage or rebuilt title:
• Assess your needs and decide on the type of coverage you want
The first step to take before getting insurance for a salvage or rebuilt title is to figure out which type of coverage you need, and this can be a little bit complicated, especially for cars with a salvage or rebuilt title.
Ensure to consider the worth of your car and the premium cost of additional coverage to decide what type of coverage you need. It makes sense if you use this rationale to assess your need and the cost attached.
• Shop around for insurance companies that offer salvage or rebuilt title
Although we have helped to curate a list of some reputable companies that offer insurance for cars with salvage title, it is important to compare prices and weigh the worth of each company. By doing this, you will be able to decide on the specific company to purchase the insurance from.
There are certain insurance companies that impose a surcharge of up to 20% on vehicles with salvage or rebuilt title, which can adversely increase the cost of purchasing auto insurance.
There are also some that limit the type of coverage available, so it is important to opt for an insurance company that offers full coverage for cars with salvage or rebuilt title.
• Get a certified mechanic’s statement
Most often than not, insurance companies will request a mechanic statement in order to prove that the salvage or rebuilt vehicle is in safe hands and in good condition.
The insurance company will assess whether the car has been fully repaired to the point where it is considered insurable; hence, you need to get a statement from a mechanic who has done a general check on it. Ensure that the car is being inspected by a trusted mechanic before purchasing it.
• Provide an estimate for the repair
You most definitely can’t skip the process of providing an original estimate for the cost of repair associated with rebuilding the car. Insurance companies will request a summary of the types of damages the car has incurred over time and the original estimate that covers the rebuilt or salvaged car.
This would prove to the insurance company that the damages done to the car have been properly fixed, taken care of, or need further repair.
• Take visual documentation of the car
When getting auto insurance for a salvage or rebuilt car, you may need to provide photo proof that showcases the condition of the car before and after the coverage is purchased. Insurance companies will then use this as a reference for future claims and consideration for other types of coverage.
Does it cost more to get car insurance for a salvage or rebuilt title?
There are various factors that affect the cost of car insurance that provides coverage for salvage or rebuilt title. Out of many of the factors, one is the insurance company you wish to purchase this type of coverage from.
Others typically include the circumstances surrounding the car’s salvage or rebuilt title. For instance, the rates of accidents caused by the policyholder will definitely increase.
