can salvage cars be insured

[Lily]

Yes, you can insure a salvaged car, but it is significantly more challenging and comes with major limitations compared to insuring a vehicle with a clean title. The key is finding an insurance provider willing to underwrite the policy, and you should expect to pay higher premiums for drastically reduced coverage, typically only liability insurance.

Understanding a Salvage Title A car is branded with a salvage title when an insurance company deems it a "total loss" after an accident, theft, or natural disaster. This means the cost of repairs would exceed a certain percentage (often 75-90%) of the car's pre-accident value. A salvaged car has been significantly compromised.

The Challenges of Insuring a Salvaged Car Most standard auto insurers, like State Farm or Geico, are hesitant to insure salvaged vehicles due to the unknown history of repairs and potential for hidden structural or safety issues. If they do offer coverage, it will almost certainly be limited to state-mandated liability coverage, which pays for damage you cause to others. They will typically refuse to offer comprehensive or collision coverage, which would protect your own salvaged vehicle.

A common prerequisite is a rebuilt title. After a salvaged vehicle is repaired, it must pass a rigorous inspection by your state's DMV or a similar authority to be re-branded as "rebuilt." This inspection verifies the car is roadworthy. Even with a rebuilt title, your insurance options will be limited.

Cost and Coverage Considerations Expect premiums to be higher because the insurer views the car as a higher risk. The vehicle's diminished value is another critical factor. In the event of another accident, the insurance payout would be based on the salvaged car's much lower actual cash value.

Insurance Company	Typical Salvaged Car Policy	Key Requirement	Potential Coverage Limitations
Standard Insurers (e.g., Geico)	Often refused; liability-only if accepted	Rebuilt Title	No Comprehensive/Collision
Non-Standard/Specialty Insurers	More likely to offer policies	Detailed repair receipts & photos	Stated value policies possible
Progressive	May offer liability and limited physical damage	Vehicle Inspection	Higher deductibles, lower payouts
The General	Specializes in high-risk auto insurance	Rebuilt Title	Basic liability coverage
State Farm	Varies by agent; often liability-only	Proof of repairs and safety	Excludes certain pre-existing damage

Your best bet is to shop around with non-standard insurers and be prepared to provide extensive documentation of the repairs. The bottom line is that while insuring a salvaged car is possible, it requires extra effort and comes with significant compromises on cost and coverage.

[Miles]

You can, but it's a headache. My buddy bought a salvaged Mustang thinking he got a great deal. When he tried to insure it, every major company turned him down flat. He finally found a smaller, specialty insurer, but they’d only give him liability. So if he crashes it, his own car isn't covered. It’s a big risk. You’ll pay more for a lot less protection.

[LeGrant]

From a repair standpoint, the main issue is verifiable quality. Insurance companies are skeptical because they don't know who fixed the car or if it was done correctly. If you have a salvaged vehicle, your strongest negotiating tool is a complete paper trail. Keep every receipt for parts and labor, especially for critical safety components like the frame and airbags. A professional rebuild certification can sometimes make a difference in convincing an insurer to offer slightly better terms.

[EmilioLynn]

I’d be very cautious. The problem isn't just getting insurance; it's what happens if you need to use it. If your salvaged car is stolen or wrecked, the insurance payout will be a fraction of what you paid. They base it on the car's value as a salvaged vehicle, which is extremely low. You could easily be left with a loan balance and no car. It often makes more financial sense to put that money toward a car with a clean title.