Can I Insure a Car With a Salvage or Rebuilt Title?

No, you can't insure a salvage title car. They're illegal to drive on public roads. 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.

You can get insurance once a salvage car is repaired and passes state inspection to receive a rebuilt title. However:

• Most insurers only offer liability coverage for rebuilt titles, which meets state requirements but doesn't cover your vehicle's damage
• Full coverage is harder to find for rebuilt titles, and most insurers offer liability-only
• Premiums cost about 20% more than standard rates
• Payouts are reduced due to lower vehicle value

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.

Getting insurance for a rebuilt title car means dealing with more paperwork than usual, but don't worry—we've broken it down into manageable steps. Here's what you'll need to do based on MoneyGeek's research with major insurers:

Rebuilt title car insurance costs about 20% more than clean title coverage. MoneyGeek's analysis of 15 major insurers we surveyed found liability-only coverage increases 10 to 20%, while full coverage jumps 20 to 40% when available.

Cars with rebuilt titles are worth 20 to 40% less according to Kelley Blue Book, meaning lower claim payouts. Like other high-risk driver situations, rebuilt titles require more research to find affordable coverage. For example, a 2018 Honda Civic with clean title insurance costs $1,200/year versus $1,440/year for rebuilt title coverage. The bottom line is to budget an extra $200 to $400 annually and expect reduced payouts.

Finding an insurer willing to cover your rebuilt title can be difficult. But, several major companies do offer coverage, and knowing which ones can save you time and money.

State Farm and GEICO offer the most comprehensive coverage options, including full coverage with comprehensive and collision coverage. Progressive, Allstate, and Farmers primarily provide liability-only policies, with full coverage determined on a case-by-case basis. USAA offers competitive rates but is exclusive to military members.

All insurers require your rebuilt title certificate, registration and proof of repairs. For full coverage, expect to provide mechanic inspections, photos and repair documentation. Most companies require phone quotes, so prepare to explain your vehicle's history and compare at least three insurers.

Every state handles rebuilt titles differently. We contacted DMV offices nationwide to see what you're up against:

Note: State requirements change frequently. Verify current requirements with your local DMV.

MoneyGeek's car insurance calculator simplifies the quotes comparison process by providing quick quotes from multiple companies with just a few details. Our 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.

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 non-repairable, 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.

Key Points:

• Junk-title cars aren't meant to be driven and are usually uninsurable regardless of repairs
• Clean-title cars are easiest to insure with the widest coverage options and lowest premiums
• Rebuilt titles permanently affect insurability and value, even with quality repairs
• State laws vary on whether junk titles can ever be converted to rebuilt status

You can't insure a salvage title car, but rebuilt title coverage is possible with higher costs and limited options. Expect 20 to 40% premium increases and reduced claim payouts. State Farm and GEICO offer the best coverage options, but prepare thorough documentation and budget for additional expenses before deciding.

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.

MoneyGeek analyzed insurer policies, financial ratings and customer experience data to determine which companies provide the best coverage for rebuilt or salvage title vehicles. This guide explains how insurers handle these vehicles, what coverage options are available and what drivers should expect when shopping for a policy.

Study Overview

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.

Data Sources and Depth

To build a complete picture, we combined three 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.

Driver Profile

To test insurer willingness and pricing, we used a consistent driver profile:

• 40-year-old male driver

• Clean driving record

• Drives a Toyota Camry LE

• Annual mileage: 12,000 miles

  This profile was adjusted for coverage type (liability vs. full coverage) and state requirements to reflect how rebuilt title status changes insurance availability.

Coverage Options Reviewed

Our analysis focused on two categories:

• Liability-only coverage: The minimum required by state law, often the only option for rebuilt title cars.
• Full coverage (100/300/100 with $1,000 deductible): Offered by select insurers if vehicles pass inspection and meet specific conditions.

Why This Approach Works

Unlike generic quote tools, this methodology is tailored to rebuilt title vehicles. It highlights insurers that provide real options for these cars, helping drivers save time and avoid dead ends when searching for coverage.