Rebuilt Title – A rebuilt title is a type of vehicle title that indicates that the car has been repaired after being declared a total loss by an insurance company. A car with a rebuilt title may have been damaged by an accident, fire, flood, theft, vandalism, or other causes.
Buying and insuring a car with a rebuilt title can be challenging, but not impossible. Here are some tips on how to do it safely and legally.
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What is a Rebuilt Title?
A rebuilt title is issued for a car that previously had a salvage title, which means that it was so badly damaged that it was not worth repairing. A salvage title car cannot be driven on public roads or registered in most states. However, if the car is fixed and passes a safety inspection, it can qualify for a rebuilt title, which allows it to be registered and driven again. The car’s history as a salvage vehicle remains a permanent part of its record, which may affect its value and insurance options.
How to Buy a Car with a Rebuilt Title
Buying a car with a rebuilt title can be risky, as there is no guarantee that the repairs were done properly or that the car is safe and reliable. However, there are some steps you can take to minimize the risks and find a good deal.
Do your research
Before you buy a car with a rebuilt title, you should check its history report using its vehicle identification number (VIN). You can use online services like CARFAX or AutoCheck to get the report, which will show you the details of the damage, the repairs, the inspections, and the previous owners. You should also check the state laws and regulations regarding rebuilt titles, as they may vary from state to state.
Inspect the car
You should always inspect the car yourself or hire a professional mechanic to do it for you. You should look for signs of structural damage, rust, corrosion, leaks, electrical problems, airbag deployment, and other issues that may affect the safety and performance of the car. You should also test drive the car and check its brakes, steering, suspension, transmission, engine, and other components.
Negotiate the price
Cars with rebuilt titles typically have lower values than similar cars with clean titles. You can expect to pay 20% to 40% less for a rebuilt title car than for a comparable clean title car. However, you should also consider the quality and extent of the repairs, the condition and mileage of the car, and the demand and supply of the market. You should compare prices from different sources and negotiate with the seller to get the best deal.
Get a warranty
If possible, you should get a warranty from the seller or the repair shop that covers any defects or problems that may arise after you buy the car. A warranty can give you some peace of mind and protection in case something goes wrong with the car. However, not all sellers or repair shops offer warranties for rebuilt title cars, so you may have to look around or pay extra for one.
How to Insure a Car with a Rebuilt Title
Insuring a car with a rebuilt title can be difficult, as some insurance companies may refuse to cover them or charge higher premiums for them. However, there are some ways you can increase your chances of getting insurance for your rebuilt title car.
Shop around
Different insurance companies have different policies and criteria for insuring rebuilt title cars. Some may only offer liability coverage, which pays for the damages you cause to others in an accident. Others may offer comprehensive and collision coverage, which pay for the damages to your own car in an accident or other events like theft or fire. You should compare quotes from multiple insurance companies and see what they offer for your rebuilt title car.
Provide documentation
To prove that your rebuilt title car is safe and roadworthy, you should provide documentation from the state agency that issued the rebuilt title, the repair shop that fixed the car, and the mechanic that inspected the car. You should also provide photos of the car before and after the repairs, receipts of the parts and labor costs, and any other evidence that shows the quality and extent of the repairs.
Maintain your car
To keep your insurance rates low and avoid claims, you should maintain your car regularly and follow the manufacturer’s recommendations for service and maintenance. You should also drive safely and obey traffic laws to avoid accidents and violations that may increase your risk profile.
Pros and Cons of Buying a Car with a Rebuilt Title
Buying a car with a rebuilt title has some advantages and disadvantages that you should weigh before making your decision.
Pros:
Lower price
One of the main benefits of buying a car with a rebuilt title is that you can save money compared to buying a similar car with a clean title. Depending on the condition and quality of the repairs, you may be able to get a good deal on a relatively new or well-equipped car.
Environmental impact
Another benefit of buying a car with a rebuilt title is that you are giving a second life to a car that would otherwise be scrapped or sold for parts. By doing so, you are reducing the environmental impact of producing and disposing of cars, as well as saving energy and resources.
Cons:
Uncertainty
One of the main drawbacks of buying a car with a rebuilt title is that you may not know the full extent and quality of the repairs or the potential problems that may arise in the future. Even if the car passes a safety inspection, there may be hidden or latent defects that could compromise its safety and reliability. You may also have trouble finding a reputable mechanic who is willing and able to service your car.
Lower value
Another drawback of buying a car with a rebuilt title is that it will have a lower resale value than a similar car with a clean title. This means that you may have difficulty selling your car or getting a good trade-in value for it. You may also have to disclose the rebuilt title status to potential buyers, which may deter them from buying your car.
Insurance issues
A third drawback of buying a car with a rebuilt title is that you may have trouble getting insurance for it or paying higher premiums for it. Some insurance companies may not cover rebuilt title cars at all or only offer limited coverage for them. Others may charge higher rates for them, as they consider them to be riskier and more likely to be involved in accidents or claims.
Is it Worth Buying a Car with a Rebuilt Title
Yes, the advantages of buying a car with a rebuilt title are
- Lower price: Cars with rebuilt titles are typically much cheaper than cars with clean titles. This is because insurance companies often total cars that have suffered even relatively minor damage.
- Good condition: If the repairs were done properly, a rebuilt car can be in just as good condition as a car with a clean title. In some cases, the repairs may have even been made to a higher standard than the original manufacturing standards.
In conclusion, Buying and insuring a car with a rebuilt title can be a viable option for some buyers who are looking for a cheaper and greener alternative to buying a new or used car with a clean title. However, it also involves some risks and challenges that require careful research, inspection, negotiation, and maintenance. You should weigh the pros and cons of buying a car with a rebuilt title and decide if it is worth it for your needs and budget.
Rebuilt Title: Frequently Asked Questions (F&Qs)
What is salvage in insurance?
In insurance, “salvage” refers to the property that remains after it has been partially damaged by an insured peril or the amount for which it can be sold at the end of its useful life or after it is damaged beyond repair. When the insurer pays a claim for a damaged item, it takes ownership of the item and may sell it to reduce its loss. The insurer may also collect the amount of a paid claim from a negligent third party or his insurer, which is called subrogation.
In property insurance, salvage value will be subtracted from any loss settlement if the insured retains the damaged property. In such a situation, the claim shall be paid in full and the insurer shall become the owner of the salvage.
For the insurer to salvage the item, the owner must first express an intent of abandonment in writing. Once that process is complete, the insurance company could choose to take full possession of the damaged property after paying out its insured value to the policyholder.
Can you insure a rebuilt title in NJ?
Yes, you can insure a car with a rebuilt title in New Jersey. However, there are some limitations. A salvage title means that the car has been declared a total loss and cannot be driven on the road. A rebuilt title means that the car has been repaired and inspected, and can be driven legally. Most insurance companies will only offer liability coverage for rebuilt title cars and may require proof of the title status and inspection information.
To transform your salvage title into a rebuilt title in New Jersey, you’ll have to undergo a salvage state inspection. If it’s declared safe to drive by a state-certified mechanic, the DMV will issue the car a salvage/rebuilt title.
Insurance companies such as State Farm and Geico offer full-coverage insurance for rebuilt title cars. Progressive, Allstate, and Mercury also offer policies for rebuilt title cars, but there may be restrictions, such as only providing liability coverage.
Can you insure a rebuilt title in Georgia?
Yes, you can insure a car with a rebuilt title in Georgia. However, there are some limitations. A salvage title means that the car has been declared a total loss and cannot be driven on the road. A rebuilt title means that the car has been repaired and inspected, and can be driven legally. Most insurance companies will only offer liability coverage for rebuilt title cars and may require proof of the title status and inspection information.
Can you insure a rebuilt title in Idaho?
Yes, you can insure a car with a rebuilt title in Idaho. However, there are some limitations. A salvage title means that the car has been declared a total loss and cannot be driven on the road. A rebuilt title means that the car has been repaired and inspected, and can be driven legally1. Most insurance companies will only offer liability coverage for rebuilt title cars and may require proof of the title status and inspection information.
To transform your salvage title into a rebuilt title in Idaho, you’ll have to undergo a salvage state inspection. If it’s declared safe to drive by a state-certified mechanic, the DMV will issue the car a salvage/rebuilt title.
Insurance companies such as State Farm and Geico offer full-coverage insurance for rebuilt title cars. Progressive, Allstate, and Mercury also offer policies for rebuilt title cars, but there may be restrictions, such as only providing liability coverage.
How do I get a rebuilt title in Florida?
To get a rebuilt title in Florida, you need to follow these steps:
- Salvage Title: The vehicle must have a salvage title first, which is issued when the repair costs are 80 percent or more of the vehicle’s value before the damage.
- Repairs: Repair the vehicle and keep all receipts or bills of sale for all major component parts.
- Inspection: The vehicle must pass an inspection by the Florida Highway Safety and Motor Vehicles Department. This includes a physical inspection and VIN verification of the vehicle, which can be performed by a licensed dealer, public notary, police officer, local tax collector, or DHSMV agent.
- Documentation: Submit documentation of the car repairs to the Florida Department of Highway Safety and Motor Vehicles (FLHSMV/DHSMV). This includes:
- Completed application for Certificate of Title (Form HSMV 82040)
- Statement of Builder (Form HSMV 84490)
- Original Florida title (or duplicate title, if you’ve lost the original) or out-of-state title
- Proof of ownership documents
- Photographs of the salvage car before repairs
- Fees: Pay a fee of at least $117.25 plus Florida sales tax to cover the inspection and title fees.
- Application: Once your car passes inspection, you can take your application to the local tax collector’s office for a rebuilt title.
After these steps are completed, a decal stating its rebuilt status will be affixed to your car. It is a crime to remove this decal. This process certifies that the vehicle is once again safe and roadworthy.