Insuring a salvage title car is possible, but it's more challenging and expensive than insuring a car with a clean title. The primary hurdle is finding a company willing to offer full coverage; many major insurers will only provide the state-mandated minimum liability insurance. For full coverage, you'll likely need to work with a specialty insurer and provide documentation like a detailed vehicle inspection and proof of repairs.
The main reason for the difficulty is the inherent risk. A salvage title is issued when a car has been damaged to the point where the cost of repairs exceeds a certain percentage (e.g., 75-90%) of its pre-accident value. This means the vehicle's structural integrity and safety systems may have been compromised, making it a higher risk for future claims.
Your path to insurance depends heavily on the car's post-repair condition. If it has been fully and professionally restored, some insurers may consider it. A third-party inspection verifying the car's roadworthiness is often required. The cost will be higher—typically 10-20% more than for a comparable clean-title vehicle—due to the perceived risk.
Below is a comparison of potential insurance scenarios for a salvage title car versus a clean title car.
| Insurance Scenario | Salvage Title Car | Clean Title Car |
|---|
| Liability-Only Insurance Availability | Limited; specialty insurers only | Widely available from all major carriers |
| Full Coverage (Comprehensive/Collision) Availability | Very limited; requires extensive documentation and inspection | Standard offering from all insurers |
| Average Annual Premium Increase (Estimate) | +18% | Baseline (0% increase) |
| Required Pre-approval Documentation | Vehicle inspection report, repair receipts, photos | Typically just VIN and vehicle details |
| Insurer's Perceived Vehicle Value | Significantly diminished (20-40% of clean title value) | Standard market value |
If your goal is simply to make the car street-legal, pursuing minimum liability coverage is your most straightforward option. However, if you've invested in a high-quality restoration and want to protect that investment, be prepared for a more involved process with a specialty provider.
