When it comes to wanting salvage insurance, your heavy-duty salvage must first be deemed a total loss by an insurance company and issued a salvage title by your state’s motor vehicle agency. There are many advantages to a salvage title, such as the opportunity to use the commercial vehicle’s parts, restore it to your standards, and also acquire it for a relatively low price. However, you can’t legally insure a salvage title until it earns a rebuilt title. 

What is a salvage title? 

Salvage titles are issued to commercial vehicles that an insurance company deems a total loss or severely damaged after an accident. A vehicle may also receive this title if the cost of repairs and its value for parts exceed market value.

 In contrast, commercial vehicles never considered salvaged have a clear title, also known as a clean title. Typically, clear title vehicles cost less to insure and have higher resale values than those with a salvage title.

What is considered “totaled” depends on the insurance company. In some instances, there may be no actual damage to the integral structure of the vehicle, such as its frame or engine. While states and insurers calculate total loss differently, there are several common factors to determine what is a total loss. A commercial vehicle is typically considered totaled if:

The Differences Between a Salvage and Rebuilt Title

The state gives a salvage title to a vehicle that has been deemed a total loss by a commercial vehicle insurance provider. If your heavy-duty salvage is repaired and passes inspection, it’s eligible to receive a rebuilt title. A rebuilt title is awarded when a vehicle that was once salvaged has been refurbished and deemed ready for the road. However, keep in mind that not all heavy-duty vehicles with a salvage title can be restored. In these cases, it is declared “non-repairable,” meaning you can only use it for its parts.

An easy way to determine the type of vehicle you have is by looking at the title’s color:

Can a salvage title be insured?

You cannot insure a commercial-grade vehicle with a salvage title because it’s not considered roadworthy. However, unless your insurance company deems your heavy-duty salvage as non-repairable, you can restore it. In this case, it’s branded with a rebuilt title once it passes state-required inspections and can be insured.

You may find that insurance options for rebuilt title vehicles, especially commercial-grade, are limited. Insurance options for rebuilt titles are typically more expensive, and not all companies cover these types of vehicles. In this case, some insurers may only sell liability-only coverage. 

Liability-only insurance means that an insurance company won’t pay for any physical damages that the vehicle incurs, but will cover the driver of another vehicle if you are in an accident that is your fault. While most insurance providers are hesitant to offer a full coverage policy, it is possible to get collision and comprehensive insurance. However, the premiums may be more expensive and the policy may not cover the full value of the car if it’s totaled again. Nevertheless, having insurance is necessary to operate your vehicle.

How to Get Salvage or Rebuilt Title Insurance

The process of obtaining salvage insurance is often more challenging than covering a vehicle with a clean title. Taking the following steps can help simplify the process: 

While you can't get salvage insurance for a salvage title vehicle, you can insure a vehicle with a rebuilt title. However, if the damages are deemed too extensive, your insurance company may declare your vehicle as non-repairable, meaning you can only use it for parts.

It’s crucial to have a secondary inspection performed by a certified mechanic before trying to insure your heavy-duty salvage. This helps ensure that any unaddressed issues from the rebuild process are identified. Most insurance companies will require this second opinion before deeming your commercial vehicle road ready.

When looking for salvage insurance, you may find fewer options to purchase insurance for your rebuilt title. Insurance options for rebuilt titles are typically more expensive, with some providers’ premiums costing up to 20% more. 

Get on the road again with Heavy Salvage.

Getting salvage insurance is possible once you’ve completed the necessary steps needed to take your vehicle from a salvage title to a rebuilt title. At Heavy Salvage, you can find all the parts you’ll need to rebuild your semi-truck, construction equipment, or commercial vehicle and get it roadworthy once again. Our team is always ready to help you with your salvage needs. Contact us today!