Does A Rebuilt Title Affect Insurance?

What is a Rebuilt Title?

A rebuilt title is issued by a state motor vehicle agency when a vehicle has been declared a total loss, salvaged, and repaired. The vehicle is then inspected by the state, and if it passes, is issued a rebuilt title, which is branded with the words “rebuilt” or “salvage.” A rebuilt title lets potential buyers know that the vehicle was once declared a total loss and repaired.

Does a Rebuilt Title Affect Insurance?

The short answer is yes. Rebuilt titles can have an effect on your car insurance rates and coverage. Insurance companies often view rebuilt titles as a red flag and may increase your rates or deny you coverage altogether.

Insurance companies look at a few specific factors when it comes to rebuilt titles and insurance. The first factor is the age of the vehicle. The older the vehicle, the more likely it is to be viewed as a risk. The second factor is the type of damage the vehicle sustained. If the vehicle sustained major damage such as a totaled engine or frame damage, the insurance company may view it as too much of a risk and deny coverage.

What Can You Do to Get Insurance on a Rebuilt Title?

If you have a rebuilt title, there are a few things you can do to get insurance coverage. The first is to shop around for the best rates. Different insurance companies may view the same vehicle differently, so it is important to compare rates and coverage from multiple companies.

The second tip is to emphasize the safety features of the vehicle. Insurance companies are more likely to offer coverage on vehicles that have features such as anti-lock brakes and airbags.

The third tip is to make sure the vehicle is in good condition. If the vehicle is in good condition, it is more likely to be viewed as a safe vehicle and receive better coverage and rates.

What Else Can You Do?

Another option is to look into specialty insurance companies. These companies specialize in insuring vehicles with salvage titles and may be able to offer coverage at a lower rate than traditional insurance companies. It is important to check with the insurance company to make sure they will provide coverage for a vehicle with a rebuilt title.

Additionally, you can look into gap insurance. Gap insurance covers the difference between what the insurance company pays out and what you owe on the vehicle in the event of a total loss. This can be beneficial if you still owe money on the vehicle and the insurance company pays out less than you owe.

Conclusion

In conclusion, a rebuilt title can affect your car insurance rates and coverage. Shopping around for the best rates and emphasizing the safety features of the vehicle can help you get the best coverage for your vehicle. Additionally, specialty insurance companies and gap insurance can also provide coverage for vehicles with rebuilt titles.