When buying a used vehicle, finding one with a salvage title can seem like a great deal because it’s usually cheaper than a clean-title car. But here’s the thing — getting car insurance for a salvage title vehicle is not as simple as insuring a regular one. Insurance companies treat these cars differently, and it’s important to understand how that affects your coverage, premiums, and claim options.
This article breaks down everything you need to know about getting car insurance for a salvage title, the challenges that come with it, and the best way to protect your investment.
What Is a Salvage Title Car?
A salvage title is given to a vehicle that has been declared a total loss by an insurance company — usually after a major accident, flood, fire, or theft recovery. That means the cost to repair the car was higher than its actual market value.
After being declared a total loss, some owners or repair shops fix these cars and bring them back to working condition. Once the vehicle passes state inspection, it receives a rebuilt title, which allows it to be legally driven again.
However, insurance companies still consider rebuilt or salvage title cars risky, which affects the kind of car insurance coverage you can get.
Can You Get Car Insurance for a Salvage Title Vehicle?
You can’t usually insure a car with a salvage title until it’s been repaired and re-certified as roadworthy. Once it becomes a rebuilt title, you can apply for insurance, but options may be limited.
Many major insurance companies don’t offer full coverage on salvage or rebuilt title vehicles. They may provide liability coverage only, which covers damages you cause to others in an accident — not your own car.
This limitation happens because insurers have difficulty assessing the true value and safety of a previously totaled car. Since the vehicle’s damage history is extensive, determining its current worth or how it might perform in another crash can be uncertain.
Types of Coverage You Can Get for a Salvage Title Car
While car insurance for salvage title vehicles can be tricky, you still have a few coverage options depending on the insurer:
- Liability Coverage:
This is the minimum insurance required in most states. It pays for injuries or property damage you cause to others in an accident. Almost every insurer will offer this for a rebuilt title car. - Comprehensive and Collision Coverage:
These protect your car against theft, vandalism, or accidents. However, not every company offers these for salvage title vehicles. Even if they do, payouts are typically limited because the car’s resale value is much lower. - Uninsured/Underinsured Motorist Coverage:
Some insurers might include this to protect you if another driver without proper insurance hits your rebuilt car.
The type of coverage you can get will depend on your car’s condition, the repairs done, and the insurer’s policies in your state.
Why Insurers Are Cautious About Salvage Title Cars
Insurance companies see salvage title cars as high-risk. These cars have already been through major damage, and even after repairs, it’s hard to know how safe they truly are.
For example, airbags might not deploy properly, or the frame could have hidden weaknesses. Plus, it’s difficult to calculate the car’s actual cash value after being rebuilt, which makes it risky for insurers to pay out claims.
As a result, many insurers offer only basic coverage or may charge higher premiums.
How to Get Car Insurance for a Salvage Title Vehicle
If you own or plan to buy a rebuilt title car, here’s how to improve your chances of getting insured:
- Gather Complete Repair Documentation:
Keep records of all repairs, inspections, and parts replacements. This helps prove that the car is safe and roadworthy. - Get a Professional Inspection:
Have an independent mechanic inspect the vehicle. A detailed inspection report can increase your chances of qualifying for better coverage. - Shop Around and Compare Quotes:
Not all companies treat salvage titles the same. Some insurers specialize in covering rebuilt vehicles, so comparing rates is crucial. - Be Honest About the Title Status:
Always disclose that your car has a rebuilt or salvage title. Hiding it could lead to denied claims later. - Consider Paying Out of Pocket for Repairs:
Since coverage is limited, it might make more sense to handle smaller repairs yourself instead of relying on full coverage.
Best Insurance Companies for Rebuilt Title Cars
While not all insurers handle car insurance for salvage title vehicles, a few companies are known to consider them on a case-by-case basis. These may include:
- Progressive
- State Farm
- GEICO
- Farmers
- Allstate
These companies often require detailed inspection reports before approving coverage. Be prepared for slightly higher premiums and limited coverage options compared to clean-title vehicles.
Is Buying a Salvage Title Car Worth It?
Buying a salvage title car can save you thousands upfront, but it comes with trade-offs. You might face higher insurance costs, limited coverage, and lower resale value.
If you’re buying one, make sure:
- The damage wasn’t structural.
- The repairs were professionally done.
- You’ve verified the title status through a trusted source like Carfax.
For many buyers, the low purchase price can make up for the insurance challenges — but only if you plan to keep the car long-term.
Final Thoughts: Protecting Your Salvage Title Car
Getting car insurance for a salvage title isn’t impossible, but it does require extra effort and research. Always start by repairing and certifying the car, then look for insurers who accept rebuilt titles.
Compare quotes from multiple companies, provide complete documentation, and be realistic about coverage expectations. Even if you can only get liability insurance, that’s enough to keep you legally protected on the road.
Owning a salvage title vehicle comes with extra responsibility, but with the right insurance strategy, you can still drive with peace of mind.