Will my insurance company reject a rebuilt title?

If you have purchased a car with a rebuilt title, you may be curious whether you will be able to find insurance coverage. There are insurance options for most salvage and rebuilt titles, but you may find that it’s difficult to learn how to buy auto insurance for a rebuilt title.

Whether you are able to find proper insurance for your rebuilt title depends on why the car was totaled, when the vehicle was totaled, and whether your car has been fully repaired and has passed all the necessary state inspections in order for you to drive safely.

What is a rebuilt title?

A rebuilt title indicates that, at some point, a car has been declared a total loss. If you have a salvage or a rebuilt title, that vehicle was previously owned and operated by someone else and was considered damaged beyond repair.

Most people who purchase a rebuilt title do so because it is often cheaper than buying a new car or even a used vehicle of a similar make and model. Rebuilt titles can be less expensive due to their previous condition. The good news about a rebuilt title is that it has likely been fully repaired. Otherwise, it would be considered a salvage title.

A salvage title is essentially a legal document issued by the Department of Motor Vehicles (DMV) in a certain state. Often, once a car is declared a total loss, it is relinquished — with its salvage title — to the insurance company. Once the car is purchased and repaired, it must be inspected by the DMV. If it passes inspection, the salvage title turns into a rebuilt title.

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What does a rebuilt title mean when it comes to insurance?

Most insurance companies will want to know if you have a rebuilt title. Because cars with rebuilt titles have been declared a total loss, they are considered more of a risk. This means that some insurance companies will require higher premiums for coverage, and some companies will reject coverage altogether. If you have a salvage title, you may not be able to find car insurance at all.

You will find it easiest to search for liability coverage for your rebuilt title, as this is the least amount of coverage you are legally required to have while driving. Insurance companies will be more likely to sell you liability coverage on a rebuilt title because it poses less of a risk.

How much is liability coverage for a rebuilt title?

How much you will pay for liability coverage on your rebuilt title depends on several factors. Some insurance companies may charge a lot more to cover rebuilt titles, but some don’t focus as much on the nature of the vehicle’s title history.

The major factors that impact how much you will pay for car insurance often include:

• Your age
• The make and model of the vehicle
• Your driving history
• Your credit history
• Where you live
• Your gender
• Your marital status

The table below reveals the average annual liability rate for each state in the U.S.

Car insurance coverage will cost less if you only carry liability coverage. If you are able to find an auto insurance company that offers collision or comprehensive coverage on your rebuilt title, you can expect to pay more for coverage.

What are the best companies to insure rebuilt titles?

There are various companies that are willing to insure rebuilt titles, depending on the age of the car and what initially happened to damage it. Some of the best companies for insuring rebuilt titles include:

Before you decide to select any of the companies listed above, it’s a good idea to shop around for car insurance coverage with multiple companies. When you compare auto insurance quotes online, you will be able to determine which company offers the best coverage at the most affordable rates.