Does a Rebuilt Title Affect Insurance? How and Why? (2025)

What Is a Rebuilt Title?

If your car has a rebuilt title, this means it likely has had some serious damage in its past. At the very least, the vehicle has required repairs deemed so expensive that an insurance company didn’t want to fix it at all.

As a result, the insurer labeled the car a total loss, and your state’s agency for safety in transportation gave it a salvage title. Cars with a salvage title are considered unsafe to drive on public roads in the U.S., although requirements vary by state.

In some cases, cars with a salvage title are beyond repair due to major car accidents or natural disasters, theft or vandalism. They may be stripped, with the spare parts being sold and the rest scrapped. In other cases, someone who sees value in the car restores it to road-ready condition.

However, to legally get on the road, a car with a salvage title has to be given a rebuilt title, which means passing a state-mandated inspection. The requirements are more stringent in some states than others.

Inspection standards for rebuilt titles vary significantly by state. In stricter states, even minor unresolved issues can prevent a vehicle from passing inspection, while others may have more lenient criteria. Researching your state’s specific requirements ahead of time can help you avoid delays and unexpected costs. Additionally, some states may require specific documentation, such as repair receipts or certifications from licensed mechanics, to approve a rebuilt title.

Why Do Rebuilt Titles Affect Insurance Premiums?

Rebuilt titles indicate that a vehicle has a history of significant damage, often making it riskier to insure. Insurance companies face uncertainty about whether all prior issues have been adequately addressed, and potential hidden damage can lead to future claims. Additionally, insurers consider the lower resale value of rebuilt vehicles when calculating coverage costs, which often results in higher premiums.

How a Rebuilt Title Affects Your Insurance Coverage

Insurance options for rebuilt titles are often limited. While liability coverage is generally available, many insurers hesitate to provide comprehensive or collision insurance due to difficulties in assessing the car's true condition and value. For those that do offer full coverage, payouts on claims are typically lower because the vehicle’s value is already diminished from its prior damage.

Getting a Rebuilt Title

To get a rebuilt title and then insurance, a salvage car must receive a statement from a certified mechanic that prior issues have been resolved and the vehicle is road-worthy. Here are the steps you must follow to turn a salvage title into a rebuilt title:

1. Have a certified mechanic inspect your vehicle.
2. Pass your state’s inspection(s).
3. Receive a rebuilt title from your state’s department of motor vehicles.

Once done, you can scout small insurers or some of the largest insurance companies to find the best insurance for your rebuilt title. You must have your driver’s license and vehicle registration. Depending on the insurance company, you also may need the vehicle identification number (VIN), a copy of the rebuilt title and photos of your car.

Insurance companies often require more than just the basic paperwork to provide coverage for a rebuilt title. Repair receipts, photos showing the damage before and after repairs, and details about who performed the work are often requested. Having this documentation ready can speed up the approval process and demonstrate that the vehicle has been restored properly

How Does A Rebuilt Title Affect Insurance?

Many insurers consider vehicles with rebuilt titles to be high risk, viewing them as some of the most dangerous cars on the road. Additionally, fraud around salvage title vehicles contributes to insurance companies losing tens of billions of dollars each year.

A rebuilt title impacts many aspects of the insurance process. First, you need to find an insurer willing to cover your car. Then, you have to determine how much the insurance might cost when you do find it. Finally, you need to worry about the average car accident settlement you may receive.

What Insurance Can a Rebuilt Title Get?

After having the state evaluate the road-readiness of your vehicle, the car may also have to pass an insurance company’s inspection. Some insurers don’t cover rebuilt titles at all, and many of those that do don’t offer full coverage.

Some smaller, regional insurers may also specialize in rebuilt title coverage, offering policies that larger companies might not. These insurers can be a valuable resource if you're struggling to find coverage, though their rates may not always be the lowest available.

Insurers face a few issues with vehicles that have been rebuilt. Even with the best mechanic, there’s no way of knowing if a problem was missed or if one will develop down the road from the previous damage.

In an accident, it may be difficult to know whether an issue resulted from previous or recent damage. Also, insurance companies have a hard time placing a value on a car that’s been totaled before.

Insurance companies may provide liability insurance coverage but not comprehensive and collision insurance. Rebuilt title insurance may include liability coverage, uninsured motorist insurance and personal injury protection. That’s enough auto insurance to get you on the road in nearly every state.

Additionally, you can expect your rebuilt title insurance cost to run high. It’s likely to be about 20% more expensive than the average car insurance cost per month on a clean title.

What Insurance Companies Cover Rebuilt Titles?

Getting the rebuilt title insurance you need may prove to be a challenge, but it won’t be impossible. While liability insurance policies can be easier to find, put in the effort to get a policy with full coverage if that is what you prefer. As you would for insurance for a car with a clean title, comparison shopping is how you can obtain the best possible price.

Here are some of the insurance companies that cover vehicles with rebuilt titles with at least liability insurance and some with full coverage:

• Allstate
• American Family
• Everest
• Farmers
• Geico
• The General
• The Hartford
• Infinity
• Kemper
• Mercury
• National General
• Omni
• Progressive
• Root
• Safeco
• State Farm
• USAA

You might find it advantageous to talk to insurers about their coverage before purchasing a rebuilt vehicle. Knowing what insurance companies expect from rebuilt titles can help your insurance search after buying your car.

When exploring policies, it’s important to ask insurers about their claim processes for rebuilt title vehicles. Claims involving rebuilt cars can be complex, particularly if damage from prior repairs is questioned. Knowing how these claims will be handled can help you avoid surprises and ensure you’re choosing an insurer that meets your needs

Find Auto Insurance with ConsumerShield

Are you ready to start your search for a low-price car with a rebuilt title? You can learn even more about getting insurance for a rebuilt title from the professionals at ConsumerShield.