Salvage Title Insurance: Coverage for Salvage & Rebuilt Titles Explained

Short Answer: You cannot insure cars with salvage titles, but once the car is repaired, inspected, and issued a rebuilt title, you can insure it. Rebuilt title insurance typically comes with higher premiums and less coverage than regular auto insurance. Below, we explain the difference between salvage and rebuilt titles, plus list the insurance companies that do and do not insure rebuilt cars.

Salvage Title Insurance

Salvage titles are assigned when an insurance company designates a car as a total loss. Salvage titles can apply under several different circumstances, including recovery after auto theft or severe damage from an accident, hail, or flooding.

Cars with salvage titles are typically sold for well below market value. However, because salvage vehicles are unsafe for driving on public roads, you generally cannot insure a car with a salvage title. To insure a salvage car, you would need to repair the damage and have the car inspected by a licensed state inspector. Once the car passes inspection, it can receive a rebuilt title, making it eligible for insurance.

Insuring a Rebuilt Title

Generally, if you have a rebuilt (previously salvaged) car, you can expect to pay slightly higher insurance premiums than you would for a car with a “clean title” — one that has never been declared a total loss.

You’ll also be less likely to get the same level of coverage for a rebuilt title car than you would get for a car with a clean title. While some companies will provide comprehensive coverage for rebuilt vehicles, others will offer liability-only or liability and collision insurance for cars that were previously salvaged.

Your state laws may also affect insurance for rebuilt title cars. Each state has different regulations regarding salvage cars and rebuilt titles, so before you seek insurance quotes, you should check with your state’s DMV office.

Insurance Companies That Cover Rebuilt Titles

Below, we provide the list of companies that offer coverage for rebuilt title cars, along with what types of coverage they offer. Keep in mind that coverage may vary by state and the specific car you want to insure, so it’s a good idea to contact the insurance companies directly about coverage for your vehicle.

21st Century Insurance

  • Types of rebuilt title insurance offered: Liability, collision
  • Comprehensive coverage available? No
  • Source: Licensed insurance agent
  • Get a quote

Allstate

  • Types of rebuilt title insurance offered: Liability only
  • Comprehensive coverage available? No
  • Source: Licensed insurance agent
  • Get a quote

Farmers Insurance

  • Types of rebuilt title insurance offered: Liability only
  • Comprehensive coverage available? No
  • Source: Licensed insurance agent
  • Get a quote

GEICO

  • Types of rebuilt title insurance offered: Liability, collision
  • Comprehensive coverage available? Yes
  • Source: Licensed insurance agent
  • Get a quote

Liberty Mutual

  • Types of rebuilt title insurance offered: Liability, collision
  • Comprehensive coverage available? Yes
  • Source: Licensed insurance agent
  • Get a quote

Nationwide

  • Types of rebuilt title insurance offered: Liability only
  • Comprehensive coverage available? No
  • Source: Licensed insurance agent
  • Get a quote

Progressive

  • Types of rebuilt title insurance offered: Liability
  • Comprehensive coverage available? Yes, but coverage excludes damage resulting from fire, theft, vandalism, or collision
  • Source: Licensed insurance agent
  • Get a quote

Safeco Insurance

  • Types of rebuilt title insurance offered: Liability, collision
  • Comprehensive coverage available? Yes
  • Source: Licensed insurance agent
  • Get a quote

State Farm

Note: State Farm will not provide coverage for any vehicle that it has previously identified as a total loss. However, it will insure vehicles with rebuilt titles if they were designated a total loss by another insurance company.

  • Types of rebuilt title insurance offered: Liability, collision
  • Comprehensive coverage available? Yes
  • Source: Licensed insurance agent
  • Get a quote

Insurance Companies That Don’t Cover Rebuilt Titles

Most smaller insurance companies will not insure cars with previously salvaged titles because of the high risks associated with rebuilt vehicles. Larger insurance companies can usually absorb the risks because of the high number of policies they hold, but some national insurance companies will not cover rebuilt cars.

Insurance companies that don’t cover rebuilt titles include:

  • Direct Auto Insurance
  • Esurance
  • The Hartford
  • Travelers

For more about car insurance, check out our article about buying car insurance online with a checking account.