Insuring a Salvage Title Car

A car with a salvage title or salvage certificate has been deemed a total loss by an insurance company — often after a serious accident. States and insurers can have varying definitions of a totaled car, but it typically means a car needs repairs that cost between 60% and 90% of its full cash value.

But in some cases, salvage title cars can’t be restored. These vehicles are declared non-repairable by insurers and can only be used for spare parts. If a salvage title car can be restored, it may be eligible for a rebuilt title, which you’ll need if you want to get insurance.

Getting a Rebuilt Title for a Salvaged Car

There are several steps to the process of getting a rebuilt title for a salvage title car:

1. Get your vehicle checked by a private mechanic. A certified mechanic’s statement is the best way to determine that all prior issues have been addressed and the car is in perfect working condition.
2. Pass a state inspection on the vehicle. Different states will have varying criteria about what will allow a rebuilt car to pass an inspection.
3. Get the rebuilt title from your state’s department of motor vehicles (DMV). Once the car has passed state inspection, your state’s DMV should upgrade its title status.

Insurance providers may have their own safety inspections for your vehicle, but once these are completed, you can buy coverage for the car and drive it legally.

Once you’ve restored a salvage title car and secured a rebuilt title for it, you can start exploring your insurance options. Some carriers won’t offer any coverage for cars with rebuilt titles. Others will provide minimum liability insurance but won’t offer comprehensive coverage or collision coverage. This is because there may still be underlying issues related to prior accidents, and it can be harder to tell the difference between old and new damage.

Factors That Affect Insurance Costs

Expect to also pay more for the coverage that you find for your rebuilt title vehicle.
The price you pay will depend on a range of factors that include the following:

• Age: Teenage drivers and males under 25 typically pay the highest auto insurance rates, as they’re statistically more likely to get into car accidents.*
• Gender: Men often pay more than women for car insurance based on crash statistics. 
• Marital status: Married drivers generally pay less for an auto insurance policy.
• Location: Densely-populated cities tend to have more accidents, car thefts and vandalism, so drivers in these areas often pay higher auto insurance rates.
• Credit history: A lower credit score means you pay more for car insurance in many states.
• Driving record: If you have a driving history free of at-fault accidents, moving violations and driving under the influence (DUI) convictions, you’ll pay less for auto coverage.
• Type of vehicle: In the case of a car with a rebuilt title, the types of previous damage and repairs are especially important. An insurer may determine that a rebuilt title vehicle is susceptible to major damage from even a minor accident.

*According to the Insurance Institute for Highway Safety (IIHS), 2022

As with any clean title vehicle, it’s best to compare car insurance quotes from multiple providers to find the best deal on auto coverage.

Not every company offers salvage title insurance. Thankfully, some of our top-rated providers do cover these unique cases. Since insuring a rebuilt title can be expensive, it’s important to look at companies that give you many opportunities to save on auto insurance, from special discounts to safe-driving programs. State Farm, Geico and Progressive all provide salvage title insurance and offer multiple discounts.

*Ratings are determined by our editorial review team. Learn more about our scoring methodology below.

Keep in mind that you may not be able to buy full coverage insurance with collision and comprehensive protection in every case. Call a local insurance agent to verify what types of coverage are available for formerly salvage-titled vehicles in your state. It’s also smart to compare quotes from multiple providers to ensure the best rates.

#1 State Farm: Best Customer Experience

State Farm is the most popular car insurance provider in the U.S. It’s also known for having affordable rates and excellent customer service. The company’s Drive Safe & Save™ usage-based program allows customers to save up to 30% on their premiums for safe driving habits.

You can also unlock savings by installing additional safety features and completing defensive driving courses. State Farm holds an A+ rating from the Better Business Bureau (BBB) and a A++ rating for financial strength from AM Best.

Keep reading: State Farm insurance review

#2 Geico: Best for Budget-Conscious Drivers

Geico consistently offers a wide range of coverage options for some of the lowest rates among national providers. In addition to giving drivers the chance to save through Geico’s usage-based insurance program DriveEasy, the company awards discounts for driving accident-free, bundling policies, taking defensive driving courses and more. Geico also has an A++ financial strength rating from AM Best and boasts an A+ rating from the BBB.

Keep reading: Geico insurance review

Compare: State Farm vs. Geico

#3 Progressive: Best for Tech-Savvy Drivers

Progressive also offers affordable rates across a spectrum of coverage options. The company’s usage-based program Snapshot® helps you earn discounts for safe driving behaviors. You can also save money by having multiple policies, listing more than one vehicle on your policy and having continuous coverage through Progressive or any other company. AM Best gives Progressive an A+ rating for financial strength.

Keep reading: Progressive insurance review

Compare: Geico vs. Progressive

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials:

• 800 hours researched
• 45 companies reviewed
• 8,500+ consumers surveyed

*Data accurate at time of publication.