Will your insurance company cover a rebuilt title vehicle?

[CarLuver]

I see a lot of late model rebuilt titled vehicles for sale often. 22 /23 models are not uncommon to see. i asked my insurance company if they cover rebuilt title cars and was told negative .

So i am curious if any of the big players cover them . if they do, do they cover for full value?

 

[dishdude]

You don't want a rebuilt car. The odds of it being repaired correctly are slim, they're never discounted enough and it's tough to get rid of them if they turn out to be a disaster. Something older and low value might be worth it, but not a 2022 or 2023.

 

[mrsilv04]

Progressive acts like they may or may not. Their Q&A section is a bit vague if they would extend comp and collision coverage.

What coverages are available for rebuilt title vehicles?​

If your insurance company accepts rebuilt title vehicles, then you can typically get liability coverage as well as any other coverages your state requires, such as uninsured motorist coverage or medical payments coverage and personal injury protection.

Depending on the insurer, you may or may not be able to get comprehensive car insurance coverage or auto collision coverage on your rebuilt title vehicle. This is because rebuilt vehicles may still have damage or issues from the accident that totaled them, making it difficult to tell the difference between old and new damage to the vehicle.

https://www.progressive.com/answers/insurance-salvage-title-car/

 

[BHopkins]

State Farm had no problem covering my E350, which has a rebuilt title.

 

[daves87rs]

Most won’t that I see….

 

[hank2]

I've never stepped in that hole but I've aways heard or read that most insurers will write liability only on an R title.

 

[CKN]

There are several car lots in Utah that specialize in buying totaled vehicles, rebuilding them, and then selling them as "salvaged" vehicles. The prices are not any where near where they should be for such vehicles.

 

[JoelB]

You don't want a rebuilt car. The odds of it being repaired correctly are slim, they're never discounted enough and it's tough to get rid of them if they turn out to be a disaster. Something older and low value might be worth it, but not a 2022 or 2023.

Hail damaged cars have been a great way to get a modern reliable car for cheaper for a long time. So I wouldn't just bundle all branded titles.

 

[whiplash473]

I see a lot of late model rebuilt titled vehicles for sale often. 22 /23 models are not uncommon to see. i asked my insurance company if they cover rebuilt title cars and was told negative .

So i am curious if any of the big players cover them . if they do, do they cover for full value?

My auto insurance (Country Financial) will cover a rebuilt title as comprehensive-only. I am going off of an experience from about fifteen years ago so that may have changed. I have not had a reason to look into it since.

 

[2010Civic]

American Family has no issues insuring our 3 salvage title cars. Including full coverage on one of them.

 

[joekingcorvette]

State Farm will cover rebuilt titles. If anyone hits you and it's their fault they definitely will have to cover the vehicle. Safety recalls also cover rebuilt titles. The only rebuilt title I have is on my Ford F-150 and my brother owns a body shop and repaired it like new.

 

[joekingcorvette]

You don't want a rebuilt car. The odds of it being repaired correctly are slim, they're never discounted enough and it's tough to get rid of them if they turn out to be a disaster. Something older and low value might be worth it, but not a 2022 or 2023.

I disagree. There are lots of theft recovery and hail damage vehicles that appear in salvage lots. There are also lots of light damage vehicles or rear hits that are very easy to repair and turn out looking like new. My little brother owns a body shop and has done hundreds of them for customers through 30 plus years of being in the body shop business.

 

[dishdude]

Hail damaged cars have been a great way to get a modern reliable car for cheaper for a long time. So I wouldn't just bundle all branded titles.

The problem is they generally aren't discounted enough to make it worth driving around a car that looks like a golf ball.

 

[JTK]

NY Central Mutual had no problem covering my salvage/rebuilt title 2016 Chevy Malibu. As long as the process was completed properly for your area, and the title is official, you should be good to go. I checked with my agent before extending an offer for this vehicle last year. Initially he advised me against it, but once I gave him the VIN and he ran it, he saw it was good to go ans said go for it if it's the vehicle you want.

 

[2010Civic]

Wrecked cars can turn out great or complete crap. Just depends on who does the repair.

 

[RhondaHonda]

How many have had a total loss paid on their prior salvage vehicle is the question? I know when I worked in insurance, we’d write collision and comp on them but when the car was totaled in an accident, the value we paid was significantly less than the same vehicle without a prior salvage/rebuilt title.

I don’t believe we charged a reduced premium for these though.

 

[dfarr67]

A friend in the business stated that there was little money in a properly fixed rebuild- so expect shortcuts. Saying that, if it's properly repaired and inspected, I don't see a difference, except when selling.

 

[BHopkins]

I've never stepped in that hole but I've aways heard or read that most insurers will write liability only on an R title.

Hmm. State farm had no problem giving me full coverage, even including 0 deductible on the comp.

This discussion seems to be filled with speculation. A lot of "I heard", and very little personal experience. All those above that are quoting personal experience, are all saying that they were able to get insurance.

 

[Owen Lucas]

How many have had a total loss paid on their prior salvage vehicle is the question? I know when I worked in insurance, we’d write collision and comp on them but when the car was totaled in an accident, the value we paid was significantly less than the same vehicle without a prior salvage/rebuilt title.

I used CCC and I haven't seen any dings for prior accident history / rebuilt. I guess it's company policy though. Would save the insurance company millions across the country though.

I don’t believe we charged a reduced premium for these though.

Ha, I agree, a car's value decreases as it gets older yet insurance continues goes up.

A friend in the business stated that there was little money in a properly fixed rebuild- so expect shortcuts. Saying that, if it's properly repaired and inspected, I don't see a difference, except when selling.

Many totaled vehicles require structural work i.e. frame rail end replacements, center posts, rear body panels, etc.

You want to know how a used car dealer owned body shop does structural replacement work?

They usually don't.

For instance, a frame rail is heated with a torch until it turns cherry red while another tech is pulling on it with the frame machine, if they even have one. Modern UHSS steels are not allowed to be welded on in some cases due to heat from fatigue. These metals become very brittle and the parts are 1 time use only. Unless it was a hail damage total, not worth it.

Hail damaged cars have been a great way to get a modern reliable car for cheaper for a long time. So I wouldn't just bundle all branded titles.

Also a great way to learn the art of paintless dent removal while you are at it!

 

[RhondaHonda]

I used CCC and I haven't seen any dings for prior accident history / rebuilt. I guess it's company policy though. Would save the insurance company millions across the country though.

Ha, I agree, a car's value decreases as it gets older yet insurance continues goes up.


Many totaled vehicles require structural work i.e. frame rail end replacements, center posts, rear body panels, etc.

You want to know how a used car dealer owned body shop does structural replacement work?

They usually don't.

For instance, a frame rail is heated with a torch until it turns cherry red while another tech is pulling on it with the frame machine, if they even have one. Modern UHSS steels are not allowed to be welded on in some cases due to heat from fatigue. These metals become very brittle and the parts are 1 time use only. Unless it was a hail damage total, not worth it.


Also a great way to learn the art of paintless dent removal while you are at it!

We used CCC as well. They’d let us know it had a prior salvage title and then ask if we wanted it run as prior salvage or not. It had a large impact on the value. I think we had a different license # or whatever they called it to run the salvage title vehicles under.

It’s been a long time so I don’t remember the specifics.