You generally cannot insure a car with a salvage title because it isn't roadworthy or legally drivable, so insurance companies won't provide coverage. However, you can insure a rebuilt title car with significant limitations. When your car sustains major damage and your insurer declares it a total loss, your state's DMV issues a salvage title, ending any possibility of insurance. Insurance becomes available only after you repair the vehicle, and a state inspection converts it to a rebuilt title. Rebuilt title cars receive coverage after passing state safety inspections, but you'll pay 20% to 40% more than clean title rates and face restricted coverage options.
Can I Insure a Car With a Salvage or Rebuilt Title?
Updated: February 4, 2026
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Key Takeaways
Salvage title automobiles, unlike vehicles with rebuilt titles, can't be insured or driven legally because they're declared total losses by state DMVs when damage exceeds 60 to 90% of the vehicle's value.
Rebuilt title insurance costs 20 to 40% more than clean title coverage, adding $180 to $480 annually, depending on coverage type.
State Farm and GEICO offer the best and least expensive comprehensive coverage options for rebuilt titles, including full coverage with comprehensive and collision when vehicles meet documentation requirements.
Most insurers only provide liability-only coverage for rebuilt titles, which meets state minimums but doesn't cover damage to your own vehicle.
Can You Get Insurance on a Salvage or a Rebuilt Title Car?
Salvage vs. Rebuilt Title: What's the Difference?
The key difference is that salvage means damaged beyond economic repair, while rebuilt means the car was fixed and certified safe to drive again. Salvage titles are issued by your state when repair costs reach 60% to 90% of your car's value (the exact threshold depends on your state). The vehicle can't be driven on public roads and can't be insured. You can buy or sell salvage title vehicles, but they're typically sold to rebuilders or salvage yards. Rebuilt titles are issued after repairs, provided your salvage vehicle passes a state safety inspection. You can now legally drive it and obtain insurance, though coverage options are limited and premiums are 20% to 40% higher than clean-title rates.
Which Insurance Companies Cover Rebuilt Titles?
Securing insurance for rebuilt-title vehicles requires research, as most companies either refuse coverage outright or impose severe limitations. A handful of major insurers write policies, each with distinct requirements and restrictions.
State Farm and GEICO stand out in the rebuilt title insurance market with full coverage options (liability, comprehensive, and collision) for vehicles that pass inspection and documentation requirements. State Farm relies on certified mechanic inspections, while GEICO prioritizes extensive documentation of repair photos.
Available | Available | Mechanic inspection required | |
Available | Available | Photos + extensive documentation | |
Limited | Available | Case-by-case underwriting review | |
Limited | Available | Agent consultation required | |
Limited | Available | State-specific restrictions apply | |
Limited | Available | Regional availability varies | |
Available | Available | Military members only; competitive rates |
What Coverage Options Are Available for Rebuilt Titles?
Most insurance companies that accept rebuilt titles offer liability coverage that meets state minimum requirements, plus state-mandated coverages like uninsured/underinsured motorist coverage (UM/UIM) and personal injury protection (PIP) or medical payments coverage (MedPay) where required. Full coverage—which adds comprehensive and collision coverage to protect your own vehicle from damage—comes from just a handful of insurers.
How to Get Insurance for a Rebuilt Salvage Title Car
Getting coverage requires more documentation than for standard policies, and not all insurance companies offer rebuilt-title coverage. You'll need state certification proving your vehicle passed a safety inspection, detailed repair records, and a mechanic's roadworthiness statement. Online quotes aren't available—you'll need to contact insurance companies by phone.
- 1Ensure your car has a rebuilt title
Your state's safety inspection and DMV certification convert salvage status to rebuilt. Insurance companies refuse salvage title coverage entirely, so you can't get insured without completing this conversion first.
- 2Get a professional inspection
A certified mechanic needs to inspect your vehicle and document its roadworthiness in writing. Budget $150 to $300 for a comprehensive pre-insurance inspection. Repair any safety problems before applying because insurers often run their own inspections and reject applications when issues surface.
- 3Gather required documentation
Start with your rebuilt title certificate, which proves you passed the state inspection, and a mechanic's safety statement confirming roadworthiness. You'll need your original repair estimate detailing the extent of the damage and the scope of the repair, plus before-and-after photos showing the transformation. Add DMV VIN verification to every repair receipt, including itemized parts and labor costs. Some insurers also require an appraisal to establish current market value (expect to pay $200 to $500 for a professional appraisal if required).
For full coverage applications, you'll need additional documentation:
- Certified mechanic inspection reports confirming roadworthiness
- Before-and-after photos showing damage extent and the repair quality
- Detailed repair documentation, including parts receipts and labor records
- Vehicle appraisals establishing current market value (some insurance companies)
- 4Choose your coverage level
Match coverage to your vehicle's value and budget. Liability-only satisfies state minimums without covering your vehicle's damage and works best for older, low-value rebuilt cars. Full coverage adds comprehensive and collision coverage to your liability policy and makes sense for newer, higher-value rebuilt vehicles, despite costing 20% to 40% more than clean-title premiums.
- 5Contact multiple insurance companies
Online quotes aren't available for rebuilt titles, so you'll need to call insurance companies directly. Contact at least three insurance companies to compare options and pricing. We recommend starting off with State Farm, GEICO, and Progressive for the most competitive rates and full coverage availability.
- 6Submit application and documentation
Provide all necessary paperwork and answer questions about damage history, repairs, and current condition. Underwriting takes one to two weeks, and you may need to schedule a physical inspection if your insurer requires one.
How Much Does Rebuilt Title Insurance Cost?
Rebuilt title car insurance costs 20 to 40% more than clean title coverage. Here's the bad news about pricing—and how much more you'll actually pay. Our analysis of 15 major insurers found that liability-only coverage increases by 10 to 20%, while full coverage jumps by 20 to 40% when available. The exact cost depends on your vehicle's damage history, the quality of its repair documentation, make and model, and your driving record
Coverage Type | Cost Increase | Monthly Impact | Annual Impact |
|---|---|---|---|
Liability Only | 10%–20% higher | +$15–25/month | +$180-300/year |
Full Coverage | 20%–40% higher | +$25–40/month | +$300-480/year |
What Affects the Cost of Rebuilt Title Insurance?
Premiums are higher for rebuilt titles because auto insurance providers can't verify that all repairs meet manufacturer specifications, even with inspection certificates. Prior severe damage may compromise vehicle safety in future accidents, and distinguishing new damage from pre-existing issues complicates claims processing.
State Requirements for Rebuilt Title Insurance
Your state determines when a vehicle receives a salvage title and what's required to convert it to rebuilt status. States with lower damage thresholds (60-70% of vehicle value) create larger pools of rebuilt vehicles that insurers price competitively. Most states use a 75% threshold, under which rebuilt title insurance costs 20% to 40% more than clean title insurance. States with higher thresholds (80-100%) produce fewer rebuilt titles with more severe damage, leading insurers to be cautious about offering full coverage.
How State Requirements Affect Rebuilt Title Insurance
Every insurer runs independent risk assessments regardless of state requirements. Your state's rebuilt title inspection approval doesn't guarantee full coverage access or standard pricing. State-specific rebuilt title requirements live with your Department of Motor Vehicles or insurance department. Requirements vary widely across states, so understanding your local process helps you assemble the proper documentation before applying.
Can You Get Car Insurance on a Salvage or Rebuilt Title: Bottom Line
You can't insure a salvage title car since these vehicles can't be legally driven, but rebuilt title coverage becomes possible after repairs and a state inspection. State Farm and GEICO offer full coverage options, while most other insurers provide liability-only coverage, with premiums running 20% to 40% higher than those for clean titles. Budget an extra $200 to $400 annually and gather your rebuilt title certificate, mechanic's inspection report and repair receipts before comparing quotes from at least three insurers by phone. Claim payouts reflect diminished market value at 20% to 40% less than clean titles.
Insuring a Car With Rebuilt or Salvage Title: FAQ
Purchasing insurance for cars with salvage or rebuilt titles can be challenging but is possible, as some major insurers provide coverage. We answer common questions about the process:
What documents do I need to insure a rebuilt title car?
You'll need these documents when applying for rebuilt title insurance:
- Rebuilt title certificate proving the car passed state inspection
- Mechanic's safety statement confirming roadworthiness
- Repair receipts showing all parts and labor
- Before-and-after photos documenting damage and repairs
- VIN verification from DMV
- Appraisal report (some insurers require a current market value assessment)
- Your driver's license and personal information
- Previous insurance records (if applicable)
For full coverage applications, insurers typically require more extensive documentation than liability-only policies. Have all documents ready before contacting insurers to streamline the application process.
How much is a rebuilt title car worth for insurance purposes?
Rebuilt title cars are worth 20 to 40% less than clean title vehicles according to Kelley Blue Book. This reduced value directly affects insurance claim payouts.
For example, if a comparable clean title vehicle is worth $15,000, the same car with a rebuilt title is worth $9,000 to $12,000. If your rebuilt title vehicle is totaled, your insurance payout is based on this lower actual cash value, not the clean title value.
The exact value reduction depends on the vehicle's original damage severity, repair quality, age, make and model. Some insurers conduct independent appraisals before providing full coverage to establish the vehicle's insurable value.
Can you get liability-only insurance on a rebuilt title?
Yes, most major insurance companies offer liability coverage for rebuilt title cars. Liability-only coverage is easier to obtain than full coverage and meets your state's minimum insurance requirements.
State Farm, GEICO, Progressive, Allstate, Farmers, American Family and USAA all provide liability coverage for rebuilt titles. You'll still pay 10 to 20% higher premiums compared to clean title liability coverage, but availability is much broader than full coverage options.
Liability-only coverage protects others when you cause accidents but doesn't cover damage to your own rebuilt title vehicle. This option works well for older rebuilt title cars with lower value where full coverage costs don't justify the limited claim payout potential.
What's the difference between salvage and rebuilt title for insurance?
Salvage title cars can't be insured because they're not roadworthy and can't be legally driven. Your state's DMV declares a vehicle as salvage when damage costs exceed 60 to 90% of its value (depending on state), marking it as a total loss.
Rebuilt title cars can be insured after repairs and state inspection, though with limitations. Most insurers offer liability-only coverage, with full coverage availability limited to select companies like State Farm and GEICO. Premiums run 20 to 40% higher than clean title coverage.
The key difference: salvage titles indicate current total loss status with no insurance options, while rebuilt titles confirm the vehicle passed inspection and qualifies for insurance, albeit with restrictions and higher costs.
Can you drive a car with a salvage title?
No, you can't legally drive a car with a salvage title on public roads in any state. A salvage title means your state's DMV has declared the vehicle a total loss due to damage exceeding 60 to 90% of its value (percentage varies by state).
Salvage title vehicles also can't be insured, registered for road use or obtain license plates. These cars can only be sold for parts, used in rebuilding projects or transported to repair facilities.
To drive the vehicle legally, you must repair it and have it pass your state's safety inspection to receive a rebuilt title. Only after obtaining rebuilt title status can you register, insure and drive the vehicle on public roads.
What is a salvage title?
A salvage title is issued when your insurer declares your car a total loss. This happens when repair costs exceed the vehicle's pre-damage value (typically 60 to 90% of actual cash value, depending on your state) or when the car's parts are worth more than repairing it.
Salvage title vehicles can't be driven on public roads, can't be insured and can't be registered. These cars are typically sold at auction for parts or purchased by rebuilders who repair them to qualify for a rebuilt title status.
What is a rebuilt title?
A rebuilt title is issued after a salvage vehicle is repaired and passes your state's safety inspection. This new title certifies the car as roadworthy and makes it eligible for insurance, though with limitations and higher premiums.
Rebuilt title vehicles can be legally driven, registered and insured, but they permanently retain the rebuilt designation. This affects resale value (20 to 40% lower than clean titles) and insurance options throughout the vehicle's life.
How long does it take to get insurance for a rebuilt title car?
Obtaining insurance for a rebuilt title car typically takes one to three weeks, from the initial application to policy activation. The timeline breaks down as follows:
- Documentation gathering: 3-7 days (collecting rebuilt title certificate, mechanic inspection, photos, repair receipts)
- Contacting insurers: 1-2 days (calling multiple companies for quotes)
- Underwriting review: 7-14 days (insurer evaluates your application and documentation)
- Physical inspection: 1-3 days if required (some insurers conduct their own vehicle inspection)
- Policy activation: 1-2 days after approval
Having all documentation ready before contacting insurers significantly speeds up the process. Applications for full coverage typically take longer than those for liability-only policies due to additional underwriting requirements.
Best Companies for Salvage or Rebuilt Title Car Insurance: Our Review Methodology
Rebuilt title vehicles challenge drivers searching for affordable insurance. Most insurers reject these cars entirely or offer only bare-minimum liability coverage at inflated rates. This research identifies which companies provide genuine coverage options for rebuilt titles and what drivers should expect when applying.
We reviewed policies from more than 15 major insurers to understand how they treat rebuilt title vehicles. Our research documented whether companies offer liability-only coverage, extend full coverage under certain conditions or decline coverage altogether.
Our data sources:
- Direct outreach to insurer customer service teams for details not available online, such as inspection requirements or state-specific restrictions
- Regulatory data from the National Association of Insurance Commissioners (NAIC) to account for state-level differences in rebuilt title rules
- Independent evaluations from AM Best and J.D. Power to assess financial strength and customer satisfaction
Our test profile: We used a consistent driver profile to test insurer willingness and pricing: a 40-year-old male driver with a clean driving record who drives a Toyota Camry LE with 12,000 miles annually. This profile was adjusted for coverage type (liability vs. full coverage) and state requirements to reflect how rebuilt title status changes insurance availability.
Coverage categories: Our analysis focused on liability-only coverage (the minimum required by state law, often the only option for rebuilt title cars) and full coverage with 100/300/100 limits and $1,000 deductible (offered by select insurers if vehicles pass inspection and meet specific conditions).
This approach highlights insurers that provide real options for rebuilt title vehicles, helping drivers save time and avoid dead ends when searching for coverage.fac
Salvage or Rebuilt Title Car Insurance: Related Articles
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Kelly Blue Book. "Frequently Asked Questions." Accessed March 27, 2025.