When a vehicle is totaled (usually by insurance) it gets a salvage title and cannot get a license plate, be driven on the roads or insured. Sometimes, people may buy these automobiles, get them repaired, pass state inspections, re-register the title and get a license plate for it. Then, these cars are clearly marked on the title as rebuilt but they can be driven and insured, although it may not be as easy, costs more and may only get limited coverage.
Most companies would offer state required minimum insurance coverage so that an auto with a rebuilt title can legally be driven. However, buying full coverage with Collision and Comprehensive for a car with rebuilt title can be tricky. You will find that not many carriers would offer reasonable quotes and some will not quote.
Naturally, they are worried about the quality of fixes carried out to make the vehicle roadworthy again and pass the inspections. The job may have been done professionally with utmost care but it is hard to confirm. That is why insuring an auto that was previously damaged beyond repair is riskier and this results in higher premiums, even if it passed the inspections and got a rebuilt title.
Another problem is that it is difficult to value these autos. They must be cheaper but how much? As a general guide, you should expect up to 50% discount in comparison to a car of the same make, model and age but with a clean title. Nevertheless, you should stay away from them if you have any doubts or don’t buy them without getting it inspected by a mechanic.
Most companies will ask why the automobile was totaled and may want to see details of the work carried out. So, it is best to learn as much as possible about the circumstances before getting quotes. Most online quote forms would allow you to enter vehicle modifications and salvage details so that the company can consider them while pricing the risk. Besides, they would be able to see its history when you give them the Vehicle Identification Number.
These reports can help in the future if you ever have an accident and have collision coverage. A policy will probably exclude previous damages and therefore you may need to prove that repairs required are not related to previous accidents.
Furthermore, you should remember that your car’s actual market value would be lower in comparison to similar ones with a clean history. Therefore you will most likely receive less money if it is stolen or written off again.
Insurance companies are known to write off an auto with cosmetic problems like few dents only. Some body shops purchase them, rebuild, get it inspected by a state designated facility and re-register. In most cases, the title clearly states that the vehicle has been damaged beyond repair before.
So, it may be an attractive proposition for some people who want a cheap automobile. However, you will probably have to sell it cheap too or you will be the last owner. Also, some people may be thinking about buying back their auto after it is written off.
A few states classify vehicles according to the level of damage. If it is classified as scrap you won’t be allowed to restore it. But you may be able to purchase it if it is classified as repairable. Then, you probably want to know how much insurance pays for a totaled car and how much it would cost you to buy it back.
Arranging a car insurance policy for a rebuilt auto requires more work and can be more expensive but you can still find coverage. You just need to shop around a little bit harder and look at the special terms and conditions for restrictions and exclusions before accepting a quote. Also, you have to accept the risk that you may not be able to get Collision coverage for it.
It is best to get its VIN and get a few vehicle insurance quotes before buying a car with a rebuilt title. This saves you guessing and making an expensive mistake. If you know what you are doing and have a chance to inspect the auto and its papers properly, you may be able to get a bargain. Otherwise, it may turn out to be junk.