A “rebuilt title” is a type of branded vehicle title issued after a vehicle that was previously declared a total loss has been repaired and approved for use on public roads. Before receiving a rebuilt title, the vehicle typically carries a salvage title because the cost to repair the damage was considered greater than a certain percentage of its value, depending on state laws or the insurer's guidelines. Once the repairs are completed and the vehicle passes the required state inspection, the title may be changed to rebuilt.
Understanding what a rebuilt title is can help drivers make informed decisions when buying, selling, or insuring a previously damaged vehicle.
How does a vehicle get a rebuilt title?
A vehicle may receive a salvage title after sustaining enough damage for an insurer to determine that repairing it is not economically practical. Once a vehicle has a salvage title, it generally cannot be legally registered or driven until it has been repaired and meets the requirements established by the state.
After repairs are completed, the vehicle may be submitted for a state inspection. If it passes the inspection and satisfies the applicable standards, the title may be changed from salvage to rebuilt. Inspection procedures and qualification requirements vary by state, so the process is not the same everywhere.
How may a rebuilt title affect auto insurance?
A vehicle with a rebuilt title may have different insurance options than a vehicle with a clean title. When considering insurance for a rebuilt title, some insurers may offer liability coverage while limiting or declining collision or comprehensive coverage. Available coverage and policy terms often depend on the insurer and the vehicle's condition.
It is a good idea to ask an insurance agent which coverages are available for the vehicle with a rebuilt title and whether any restrictions or additional requirements may apply before purchasing a policy.
What is the difference between a salvage title and a rebuilt title?
Understanding the difference between salvage and rebuilt title designations can make it easier to evaluate a used vehicle's history.
- Salvage title: The vehicle was declared to be a total loss and has not yet been repaired and approved for road use.
- Rebuilt title: The vehicle has been repaired and passed the required state inspection. Although the vehicle has been approved for use, both title designations remain part of the vehicle's permanent history.
To learn more about branded titles and how they may affect insurance, visit the Infinity Insurance Agency, Inc. (IIA) Knowledge Center article on salvage retention title.
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Whether you're buying a vehicle with a rebuilt title or already own one, understanding your insurance options can make the process easier. IIA partners with more than 20 trusted insurance carriers, giving drivers access to a variety of personal auto insurance options. If you have questions about coverage for a rebuilt-title vehicle, our experienced Spanish-bilingual agents are ready to help.
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