You cannot insure a salvage car but you can insure a car with a rebuilt title. However, the process can be trickier than for cars with clean titles. You should also be prepared for higher insurance premiums and additional inspections.
Firstly, you may find that many insurance companies are reluctant to insure a rebuilt car since it was already written off once. However, if you show them that you passed the DMV inspection and have persuasive negotiation skills, some companies will be up to talking to you.
Getting a full coverage may be difficult since it is challenging to assign a value to a rebuilt title car. Most rebuilt cars have 20 to 40% lower value than clean cars so your insurance payout may also be low. The insurer may also not be able to determine whether the damage already existed or happened because of a particular incident, which will make it hard to get optional coverage like collision coverage.
Another big issue is safety concerns as refurbished salvage cars may retain some issues that could not be addressed during their reconstruction. This can lead to a safety risk on the road. This means your car is more likely to result in an insurance claim and the insurance company may order further inspections.
The premium on rebuilt cars is quite high. However, if you know how to negotiate, you may be successful in getting it lowered. Even though it may still be high, it will not bankrupt you.
Don’t be discouraged if you get rejected by some insurance companies. Shop around and you will find others that will be willing to give you coverage. Once you have found one that will give you insurance with a reasonable premium, you will need to get:
- A certified mechanic’s statement confirming the car is safe to go on the road.
- Extensive photos and videos of your car that can help insurers compare the condition of your car in case of damage and you came to make a claim.
- The car’s original repair estimate that will describe all the improvements made to the car and provide proof that the car has been repaired.
Insuring a salvage rebuilt car may be difficult but not impossible, so there is no need for you to step back and be left without a cheap set of wheels.