Rebuilt Title Insurance: Understanding the Basics

When a vehicle has been damaged beyond repair or declared a total loss, it is given a salvaged title. But what happens next? Can the vehicle be rebuilt and put back on the road? The answer is yes, but it comes with a catch – the title will now read “rebuilt,” and it will require specific insurance coverage. In this article, we will explain what rebuilt title insurance is, what it covers, and where you can get it.

What is Rebuilt Title Insurance?

Rebuilt title insurance, also known as salvage title insurance, is a special type of insurance coverage designed for vehicles that have been rebuilt and have a rebuilt title. This type of insurance is necessary because rebuilt vehicles can often have hidden damage or mechanical issues that may not be immediately apparent when the vehicle is purchased. Because of this, most insurance companies will not provide standard coverage for these types of vehicles.

The coverage provided by rebuilt title insurance is similar to standard auto insurance. However, it takes into account the fact that the vehicle has been previously damaged and rebuilt. The insurance will typically cover liability, collision, and comprehensive coverage, depending on the policy you choose.

What Does Rebuilt Title Insurance Cover?

Rebuilt title insurance is designed to provide coverage for vehicles that have been previously damaged and rebuilt. This type of insurance will typically cover the following:

Where Can You Get Rebuilt Title Insurance?

Not all insurance companies offer rebuilt title insurance. However, there are still several options available. You can start by checking with your current insurer to see if they offer this type of coverage. If they do not, you can contact other insurance companies that specialize in insuring rebuilt vehicles.

It is important to note that rebuilt title insurance can be more expensive than standard auto insurance. This is because these vehicles have a higher risk of being involved in an accident due to the previous damage they have sustained. However, it is still necessary to have this type of insurance coverage if you plan to drive a rebuilt vehicle on public roads.

FAQ

What is a rebuilt title?

A rebuilt title is a type of title given to a vehicle that has been previously declared a total loss due to damage or theft. The vehicle has been repaired and inspected, and it is now deemed roadworthy again. However, the title will now read “rebuilt,” which can affect the resale value of the vehicle.

What is the difference between a salvaged title and a rebuilt title?

A salvaged title is given to a vehicle that has been declared a total loss by the insurance company due to damage or theft. A rebuilt title is given to a salvaged vehicle that has been repaired and inspected and is now deemed roadworthy again.

Can you insure a rebuilt title vehicle?

Yes, you can insure a rebuilt title vehicle. However, you will need specific insurance coverage designed for these types of vehicles, such as rebuilt title insurance.

Is rebuilt title insurance more expensive than standard auto insurance?

Yes, rebuilt title insurance can be more expensive than standard auto insurance. This is because these vehicles have a higher risk of being involved in an accident due to the previous damage they have sustained.

Can you finance a rebuilt title vehicle?

Yes, you can finance a rebuilt title vehicle. However, it can be more difficult to obtain financing for these types of vehicles, and the interest rates may be higher due to the increased risk involved.

Conclusion

If you are considering purchasing a rebuilt title vehicle, it is important to understand the insurance requirements and the coverage available. Rebuilt title insurance is a necessary type of coverage that can protect you in the event of an accident or theft. Make sure to shop around and compare quotes from different insurance companies to find the best coverage at the most affordable price.