When purchasing a vehicle with a rebuilt title, one of the most important considerations is insurance. Many insurance companies are hesitant to provide full coverage for rebuilt title cars, and those that do often charge higher premiums. This guide will explore the cost of rebuilt title insurance, what coverage options are available, and how to find the best insurance policy for your vehicle.
What is Rebuilt Title Insurance?
A rebuilt title is issued to a car that was previously declared a total loss by an insurance company but has since been repaired and deemed roadworthy. Insuring a vehicle with a rebuilt title can be more expensive and complex than insuring a car with a clean title.
How Much Does Rebuilt Title Insurance Cost?
The cost of insurance for a rebuilt title car varies based on several factors, including the insurance provider, the type of coverage, the vehicle’s make and model, and your driving record. On average:
- Liability-Only Coverage: $50 – $150 per month
- Comprehensive & Collision Coverage: $100 – $300 per month
- Full Coverage: Can be up to 20-40% more expensive than a clean title policy
Since rebuilt cars have a history of damage, insurance companies may charge higher premiums or limit coverage options.
What Coverage Can You Get for a Rebuilt Title Car?
Insurance coverage for a rebuilt title vehicle typically includes:
- Liability Coverage: Covers damages to other vehicles and property in an accident.
- Comprehensive Coverage: Covers damages from non-collision events like theft, fire, or weather.
- Collision Coverage: Covers repair costs if the car is damaged in an accident.
- Uninsured/Underinsured Motorist Coverage: Protects against accidents with uninsured drivers.
Some insurers may only offer liability coverage, while others provide comprehensive policies with restrictions.
Will a Rebuilt Title Affect Insurance?
Yes, having a rebuilt title will affect insurance costs and availability. Some insurers may decline coverage, while others may only offer liability insurance. Full coverage is often more expensive due to the car’s prior damage history.
Can You Get Comprehensive Insurance on a Rebuilt Title?
It depends on the insurance provider. Some insurers may offer comprehensive coverage, but it often comes with limitations and higher premiums compared to a clean title vehicle.
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Certified Rebuilt Title
A certified rebuilt title means the car has passed a state inspection and is considered roadworthy. Some insurance companies prefer certified rebuilt vehicles over standard rebuilt title cars as they have undergone a more rigorous assessment.
Salvage Car Insurance Cost
Salvage title cars (not yet rebuilt) are much harder to insure, and most insurance companies offer minimal coverage. If a salvage vehicle is repaired and converted to a rebuilt title, insurance costs can still be higher than those for a clean title car.
What Does Rebuilt Title Mean?
A rebuilt title is issued when a previously totaled vehicle has been repaired and passed an inspection. It indicates that the car is roadworthy but has a history of severe damage.
What is a Salvage Title on a Car?
A salvage title is given to a vehicle deemed a total loss by an insurance company. These cars cannot legally be driven until they are repaired, inspected, and rebranded as rebuilt title vehicles.
Financing a Rebuilt Title
Financing a rebuilt title car can be more challenging than financing a clean-title vehicle. Many lenders hesitate to provide loans due to the car’s prior damage history. However, some banks and credit unions may offer financing with stricter terms.
Car Insurance Premiums for Rebuilt Titles
Premiums for rebuilt title vehicles are typically 20-40% higher than those for clean title cars. The increase depends on factors like the extent of prior damage, repair quality, and insurance company policies.
How to Lower Rebuilt Title Insurance Costs
If you’re looking to save on insurance for your rebuilt title car, consider the following:
- Shop Around: Compare multiple quotes from different providers.
- Increase Your Deductible: A higher deductible can lower your monthly premium.
- Bundle Policies: Combine auto insurance with home or renters insurance for discounts.
- Drive Safely: A clean driving record helps reduce rates.
Conclusion
Although insurance for a rebuilt title car can be more expensive, you can find affordable coverage by researching different providers and understanding your options. While some insurers may only offer limited policies, liability coverage is usually available, and full coverage can be obtained with higher premiums.
FAQs
Q: Can you get full coverage on a rebuilt title car?
A: Yes, but not all insurance companies offer it, and the cost may be higher.
Q: Why is rebuilt title insurance more expensive?
A: Insurers consider rebuilt title vehicles to have a higher risk due to previous damage and repairs.
Q: Which insurance companies cover rebuilt title cars?
A: Progressive, Geico, State Farm, and Allstate are known to offer coverage, but availability varies by state.
Q: How can I reduce my rebuilt title insurance cost?
A: Shopping around, increasing deductibles, and maintaining a good driving record can help lower costs.
