Whether your commercial vehicle was totaled and declared a salvage or you bought a salvage title from a salvage auction, you’ll need to get the vehicle insured if you intend to repair it. But there are a few steps you need to take before you can insure and drive your heavy duty salvage. In this guide, we’ll explore the differences between a salvage title and a rebuilt title, how much insurance for a rebuilt salvage title can be, and how to get your rebuilt salvage title insured.
What is a Salvage Title?
A vehicle is issued a salvage title when it experiences enough damage to be considered a total loss by an insurance company. This means that the cost to repair the vehicle surpassed the total value of the vehicle itself. Semi-trucks, construction equipment, and commercial vehicles with salvage titles cannot be insured unless they are issued a rebuilt title.
Salvage Title vs. Rebuilt Title
A rebuilt title differs from a salvage title in that it indicates the vehicle has been approved to be driven in a given state. Vehicles with rebuilt titles were previously listed as salvaged, but they were repaired and rebuilt and then tested to ensure they were safe to drive again.
Can You Insure a Vehicle With a Rebuilt or Salvage Title?
You cannot get insurance for a vehicle with a salvage title. The only way to reinsure a salvage title is to restore the vehicle and get a rebuilt title. The vehicle must pass state inspections before it can be considered roadworthy.
How Much Does Insurance Cost for a Salvage or Rebuilt Title?
Insurance policies are typically more expensive for rebuilt titles than clean titles. Most insurance companies assume further issues will arise in rebuilt vehicles due either to poor workmanship or neglect to fix necessary issues. Additionally, many insurance companies do not insure rebuilt titles at all. This means insurance companies that do insure rebuilt titles can charge more because they have very little incentive to charge competitive rates.
How to Get Insurance for a Rebuilt Salvage Title
Though more difficult than insuring a vehicle with a clean title, it is nonetheless possible to secure insurance for a rebuilt salvage title. Follow these steps to get salvage title insurance.
1. Make Sure You Have a Salvage Title
Whether you own the vehicle before it was damaged or bought it from a salvage company, you should make sure you have a salvage title. You typically need to coordinate with your insurance company to apply for one through your state's DMV, but some states may vary.
2. Rebuild the Vehicle
Next, make the necessary repairs to your salvage title so it can be roadworthy once again. Most states will require your rebuilt vehicle to be inspected by a certified mechanic before you can apply for a rebuilt title. Contact your local DMV and your insurance provider to learn their requirements and what kind of documentation they will need.
3. Secure a Rebuilt Title
Once you have made the necessary repairs to your salvaged vehicle and have it inspected, you can apply for a rebuilt title through your state’s DMV.
4. Review Insurance Coverage Options
After your rebuilt title is secured, you can review any insurance options available to you. Keep in mind that some insurance companies do not offer coverage for rebuilt salvage titles. Always compare quotes and shop around, as insurance policies for rebuilt titles can be more expensive than clean title policies.
5. Take Pictures of Your Rebuilt Title Vehicle
Take pictures of your vehicle once it’s been rebuilt. These will serve as “before” evidence in case you get into an accident and need to make a claim.
On the Road Again
Insuring your salvage title vehicle is possible once you’ve completed the necessary repairs. 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!