Updated: March 27, 2025
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A salvage title is given to a car declared a total loss by an insurer, while a rebuilt title is issued to a repaired salvage car that passes state inspections.
You can’t register or insure a car with a salvage title; it needs a rebuilt title first.
Most insurers hesitate to offer full coverage for rebuilt-title cars but may provide minimum coverage.
A salvage title is issued when an insurer declares a car a total loss, often because repair costs exceed its pre-damage value or parts’ worth.
A rebuilt title follows after the car is repaired and passes state inspections, marking it as roadworthy and insurable.
Car title colors indicate status:
A total loss means a car is too costly or unsafe to repair. Insurance companies use several factors to determine whether a car is a total loss. States and insurers calculate total losses differently, but they typically consider a vehicle totaled if:
Even if repaired, a total-loss car requires special checks to be legally driven, insured and given a rebuilt title.
You can’t insure a salvage-title car because it’s not roadworthy. However, if it’s repairable, you can restore it and get a rebuilt title after passing state inspections. Once rebranded, the vehicle becomes eligible for insurance. Below are some steps to find a policy:
You can insure a vehicle with a rebuilt title, but extensive damage may prevent coverage, limiting the car's use to parts only.
A secondary inspection by a certified mechanic is essential before insuring a rebuilt car. State inspections may overlook issues, but a mechanic can ensure the vehicle is safe to drive. This step helps identify unaddressed restoration problems early, and most insurers require a second opinion to confirm the car’s roadworthiness.
Insurance options for cars with rebuilt titles are limited, as many insurers refuse to cover them. Local agents can help identify companies willing to provide coverage. Since rebuilt cars have lower market values, opting for minimum coverage can help you avoid overpaying.
Getting full coverage for a rebuilt title is possible but challenging. Insurers often require additional inspections and specific conditions to be met due to uncertainty about pre-existing damage. Even when available, full coverage premiums can be up to 20% higher. If insurance costs exceed the car’s value, consider whether driving the vehicle is worthwhile.
When applying for insurance on a rebuilt-title car, you'll need to provide specific documentation to meet insurer requirements:
Having this information ready can streamline the application process.
Compare quotes from at least three auto insurance companies to find the best policy. Once you have the quotes, review each policy carefully for potential limitations or exclusions that could impact your coverage.
Insurance options for rebuilt-title cars are often limited. Some insurers may offer only minimum coverage, while others might refuse coverage entirely. Although obtaining full coverage, including collision and comprehensive, is possible, it typically comes with higher premiums and lower payouts after an accident.
Comparing quotes from at least three providers ensures an accurate estimate of your car insurance premiums. MoneyGeek's calculator simplifies this process by providing quick quotes from multiple companies with just a few details.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Apr 23, 2025
| Insurance Carrier | MoneyGeek Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 | 83 /of 100 | $118 | |
| 4 | 83 /of 100 | $129 | |
| 5 | 79 /of 100 | $133 | |
| 6 | 77 /of 100 | $151 |
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
According to Kelly Blue Book, cars with salvage or rebuilt titles typically have market values 20% to 40% lower than those with clean titles. Their history of damage and repair makes them riskier, often resulting in higher premiums.
The exact value depends on the damage, repair quality and the car's make and model. For a precise estimate, have a certified mechanic or professional appraise your car.
Not all insurers cover cars without clean titles. If you’re insuring a rebuilt-title car, consider these companies:
Meeting insurer requirements is essential for eligibility, and coverage often includes limitations. Comparing quotes ensures you find a policy that suits your needs.
A salvage title and a rebuilt title represent different stages in a car’s history, each with specific impacts on insurance, market value and legal use. A vehicle with a salvage title can be repaired and, if it passes inspection, may qualify for a rebuilt title.
However, not all salvage-title vehicles are repairable. Some are deemed "nonrepairable," meaning they can only be used for parts and can't be insured. The table below shows the differences between these types of car titles.
Aspect | Salvage Title | Rebuilt Title | Clean Title | Junk Title |
|---|---|---|---|---|
Insurance treatment | Limited to minimum coverage (if available); deemed as total loss and not roadworthy | Comprehensive and collision coverages may be available after repairs and inspection, but options are limited and premiums higher. | Full range of coverage options, including comprehensive, collision and liability at standard premiums | Uninsurable because it's deemed beyond repair |
Market value | Much lower than clean titles; often sold for parts or to be rebuilt | Higher than salvage titles but less than clean titles | Highest market value; considered the standard for vehicle sales | Minimal value; typically sold for scrap or parts only |
Legal usage | Can't be driven on public roads or insured but can be sold for parts or as a rebuilding project | Can be legally driven on public roads and eligible for insurance, though often at higher rates | Allowed on all public roads and meets all state regulations for operation | Not allowed on public roads; considered unfit for operation |
Purchase and use | Can be bought, but mainly for parts or to be rebuilt — not for regular driving and can't be insured | Can be bought, driven and sold after passing state inspection | Can be bought, driven and sold without restrictions | Can be bought, but only for scrap or parts; not for driving |
Junk-title cars aren't meant to be driven. They are usually sold for parts or scrap metal, can't be registered for road use and are uninsurable. Restoring a junk-title car requires extensive repairs and passing strict state inspections to prove roadworthiness. However, some states never allow a junk title car to be retitled as rebuilt, regardless of repairs, leaving it uninsurable.
A clean-title car hasn't suffered major damage or been declared a total loss by an insurer. Unlike salvage or rebuilt-title vehicles, clean-title cars are easier to insure, face fewer restrictions and qualify for standard premiums. They also cost less to insure and have higher resale values than salvage-title cars.
In most states, a car with a salvage title can't be legally driven. These titles indicate that the vehicle is a total loss and typically can't be insured or registered. Some states make exceptions if the car is repaired and passes safety inspections, but regulations vary.
Insuring a car with a salvage title is usually impossible. The vehicle must be repaired, pass a state inspection and receive a rebuilt title to qualify for insurance. Even then, options are limited, premiums are higher, and some insurers may offer only minimum coverage. This article explains how to convert a salvage title to a rebuilt title and provides tips for obtaining insurance.
Purchasing insurance for cars with salvage or rebuilt titles can be challenging but is possible, as some major insurers provide coverage. MoneyGeek addresses common questions about the process to simplify it.
Full coverage insurance for a rebuilt-title car is possible but difficult to find, and affordable options are rare. Many insurers hesitate to offer full coverage because it's harder to determine if damage is from an accident or pre-existing issues. Minimum coverage is more commonly available.
Insurance premiums for rebuilt-title cars are typically higher than those for clean-title vehicles. Insurers assume drivers of rebuilt-title cars are more likely to file claims, leading to premiums that can be up to 20% higher. Limited coverage options also reduce competition, causing insurers to charge higher rates.
Insurance is available only for rebuilt or clean-title cars. While you can insure a rebuilt-title car, the process is more complex. A certified mechanic must inspect the vehicle to confirm it's safe to drive. Even after passing inspection, coverage options are limited. Many insurers don't cover rebuilt-title cars, and those that do often provide minimum policies rather than full coverage.
Overview
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
