Insuring a salvage title car is possible, but it requires more effort and specialized providers. The key is to find an insurance company that specializes in non-standard or high-risk auto policies. You will likely only be able to obtain liability coverage, which is the minimum required by law in most states to cover damage you cause to others. Comprehensive and collision coverage for the salvage car itself is extremely rare and often not cost-effective.
The process begins with a salvage vehicle inspection. Many states mandate this inspection to verify the car is roadworthy before it can be re-titled as "rebuilt" and become eligible for insurance. You'll need to provide documentation, including the salvage title and receipts for parts and repairs.
Your premiums will be higher than for a car with a clean title. Insurers view salvage vehicles as higher risk due to their unknown repair quality and potential for hidden damage. The vehicle's insured value will also be significantly lower, typically 50-80% of a comparable clean-title car's value, as the salvage brand permanently diminishes its resale worth.
| Consideration | Key Details | Impact on Insurance |
|---|
| Coverage Type | Liability is primary option; physical damage coverage is rare. | Limits protection mainly to third-party damages. |
| Vehicle Inspection | Often required by state DMV to obtain a "rebuilt" title. | Mandatory step before most insurers will offer a policy. |
| Insurance Providers | Mainstream companies often decline; specialty insurers are needed. | Requires shopping around with non-standard carriers. |
| Premium Cost | Generally 20-50% higher than for a clean-title vehicle. | Increased ongoing expense due to perceived higher risk. |
| Vehicle Value | Insured value is drastically reduced (e.g., 60% of clean title value). | Total loss payout would be minimal. |
Be prepared to provide extensive documentation and shop around. The best approach is to contact insurers that explicitly advertise coverage for salvaged or rebuilt vehicles.
