Can I Get Full Coverage on a Rebuilt Title?

A rebuilt title indicates a vehicle has undergone significant repair after being declared a total loss by an insurance company. While it is generally possible to obtain some form of insurance for these vehicles, securing “full coverage,” which typically includes comprehensive and collision, can present challenges. Insurance providers often approach rebuilt vehicles with increased scrutiny due to their prior damage history.

Understanding Rebuilt Titles

A rebuilt title signifies that a vehicle was once deemed a “total loss” by an insurance company but has since been repaired and passed a state-mandated inspection. Vehicles receive a salvage title first, indicating they are not safe for operation on public roads due to substantial damage from incidents like accidents, floods, or theft. This initial classification means the cost of repairs exceeded a certain percentage of the vehicle’s pre-damage value, as determined by the insurer.

Once a salvage vehicle undergoes repairs to restore it to a roadworthy condition, it can be submitted for a state inspection. This inspection process verifies that the repairs meet safety standards and that the vehicle is structurally sound. Upon successful completion of this inspection, the salvage title is converted to a rebuilt title. The rebuilt title acts as a permanent marker in the vehicle’s history, signaling past significant damage. This means the vehicle is now legally drivable and can be registered for use.

Insurance Considerations for Rebuilt Titles

Insurance companies view vehicles with rebuilt titles differently than those with clean titles due to risks from their damage history. The primary concern for insurers is the potential for hidden damage or lingering issues that may not have been fully resolved during the repair process. This makes it difficult for them to accurately assess the vehicle’s true value and the extent of any new damage should another incident occur.

Obtaining “full coverage,” which combines comprehensive and collision insurance, can be challenging for rebuilt title vehicles. Comprehensive coverage protects against non-collision incidents like theft, vandalism, or natural disasters, while collision coverage handles damage from accidents. Many insurers are hesitant to offer these types of coverage because determining whether new damage is distinct from pre-existing damage is complex. Some companies may refuse to provide comprehensive and collision coverage, or they may offer it with significant limitations or higher premiums.

Despite these difficulties, liability coverage is almost always obtainable for rebuilt title vehicles. Liability insurance is legally required in most states and covers damages or injuries you cause to others in an accident. While some major insurers may offer full coverage for rebuilt vehicles, this is not universally true, and options can vary widely. The perceived higher risk often translates into increased insurance costs for these vehicles, even when comprehensive and collision coverage is secured.

Steps to Obtain Insurance

Before contacting any insurance providers, gather all relevant documentation related to the vehicle’s repair and title conversion. This includes detailed repair records, receipts for all parts purchased, and photographs taken before and after the repairs. It is also important to have all documentation from the state inspection that resulted in the rebuilt title, as this verifies the vehicle’s roadworthiness.

When you are ready to seek coverage, be transparent with potential insurers about the vehicle’s rebuilt title status. Approach a variety of providers, including large national carriers and independent insurance agents who may work with multiple companies. Some insurers may require a physical inspection of the vehicle by their own appraiser or a third-party expert to assess its condition and confirm the quality of repairs. This inspection helps the insurer determine the vehicle’s current market value and the level of risk involved.

During the quoting process, compare premiums, the specific coverages offered, and any limitations or exclusions that apply. Be prepared for potential requirements for additional documentation or follow-up questions from the insurer. Once an application is submitted, there may be a waiting period for approval as the insurer reviews all provided information.