A few years ago, my brother-in-law bought a used car with a salvage title because it was significantly cheaper than buying a regular used vehicle. The car had been declared a total loss by the insurance company, but it was later rebuilt and passed inspection.

The problem? Most major insurance companies wouldn’t cover it. The ones that did? They wanted ridiculously high premiums—almost as much as insuring a brand-new car!

Frustrated, he called me and asked, “Is there any way to get affordable insurance for a salvage title car?”

After a lot of research and calling different providers, we found an insurance company willing to offer a reasonable rate for a rebuilt title car. By knowing what to ask for and where to look, he was able to get a policy that cost 40% less than his original quotes.

If you own (or are thinking about buying) a salvage title car, here’s everything you need to know about insuring it affordably and legally.

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What Is a Salvage Title Car?

🚗 A salvage title is given to a vehicle that has been declared a total loss by an insurance company.

This usually happens when:
✔ The car was damaged in an accident beyond the cost of repair.
✔ The vehicle was flooded, stolen, or vandalized and then recovered.
✔ The car was involved in a natural disaster (hurricane, fire, etc.).

📌 What Is a Rebuilt Title?

• A rebuilt title means the salvage car has been repaired and passed state inspections, making it roadworthy again.
• Only rebuilt title cars can be insured and legally driven—you can’t insure a car that still has a salvage title.

But here’s the problem: Even though rebuilt title cars are street-legal, many insurance companies refuse to offer full coverage because they consider them a higher risk.

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Best Companies That Offer Salvage Title Car Insurance

Not all insurers cover rebuilt salvage title vehicles, but these companies are the best options if you need coverage:

1. Progressive – ⭐ Best for Customizable Salvage Title Coverage

✔ Covers Rebuilt Title Cars? Yes, liability and sometimes full coverage.
✔ Best for: Drivers who want flexible policies with optional add-ons.
✔ Why I like it: The Snapshot® program can help lower rates.

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2. GEICO – ⭐ Best for Cheap Liability Coverage

✔ Covers Rebuilt Title Cars? Yes, but usually only liability insurance.
✔ Best for: Drivers who only need the minimum required insurance.
✔ Why I like it: Offers competitive rates for salvage vehicles.

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3. The General – ⭐ Best for High-Risk Drivers with Salvage Cars

✔ Covers Rebuilt Title Cars? Yes.
✔ Best for: People with salvage cars and a high-risk driving record.
✔ Why I like it: Provides instant approval and flexible payment options.

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4. State Farm – ⭐ Best for Personalized Service

✔ Covers Rebuilt Title Cars? Yes, in some states.
✔ Best for: Drivers who prefer working with a local agent.
✔ Why I like it: Offers one-on-one assistance with coverage options.

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5. Farmers Insurance – ⭐ Best for Full Coverage on Rebuilt Titles

✔ Covers Rebuilt Title Cars? Yes, including comprehensive and collision coverage in some cases.
✔ Best for: Drivers who want more than just liability coverage.
✔ Why I like it: One of the few insurers offering full coverage for rebuilt vehicles.

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How to Get Cheap Insurance for a Salvage Title Car

Since not all insurance companies cover rebuilt title cars, follow these steps to find affordable insurance:

✅ 1. Compare Quotes from Multiple Insurers

💰 Savings: Up to $700 per year

• Not every company charges the same rates for salvage cars.
• Get at least 3-5 quotes to find the most affordable option.

✅ 2. Be Ready to Provide Documentation

📄 Required Documents for Salvage Car Insurance:
✔ A copy of the rebuilt title (proving it’s roadworthy).
✔ Photos of the car before and after repairs.
✔ A mechanic’s inspection report.
✔ Proof of passed state safety inspections.

✅ 3. Start with Liability-Only Insurance

💰 Savings: 30-60%

• Full coverage is often not available for salvage cars.
• If your car isn’t worth much, liability-only insurance can be the best way to save money.

✅ 4. Ask About Discounts

💰 Savings: 10-25%
Even with a salvage title, you may qualify for:
✔ Safe Driver Discount – No accidents or tickets in 3-5 years.
✔ Multi-Car Discount – Insuring multiple vehicles under the same policy.
✔ Bundling Discount – Combining home and auto insurance.
✔ Low Mileage Discount – If you drive under 10,000 miles per year.

✅ 5. Consider an Independent Insurance Broker

• Some smaller regional insurers cover salvage cars when big companies don’t.
• An insurance broker can help find local insurers willing to insure rebuilt titles.

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How My Brother-in-Law Got Cheap Salvage Title Insurance

When my brother-in-law needed affordable insurance for his rebuilt car, here’s how we saved him hundreds of dollars:

✔ Checked quotes from Progressive, GEICO, and Farmers Insurance.
✔ Chose GEICO because it offered the lowest rate for liability-only.
✔ Got a mechanic’s inspection report to prove the car was safe.
✔ Applied a low-mileage discount since he drove under 8,000 miles per year.
✔ Paid for 6 months upfront to reduce extra fees.

Final result: His insurance premium dropped from $185 to $109 per month, saving him over $900 per year!

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FAQs About Salvage Title Car Insurance

🔹 Can you get full coverage on a salvage title car?
✔ Sometimes. Some insurers, like Farmers and Progressive, offer comprehensive and collision coverage, but many only offer liability insurance.

🔹 Why is insurance more expensive for salvage title cars?
✔ Insurers consider salvage cars riskier because previous damage could affect performance and safety.

🔹 How can I lower my insurance costs for a rebuilt title car?
✔ Choose liability-only coverage, apply for discounts, and compare multiple quotes to find the best deal.

🔹 Which companies offer the cheapest salvage title insurance?
✔ GEICO, Progressive, and The General tend to have the most affordable options.

🔹 Is a rebuilt title car worth it?
✔ If you get a good deal and it’s been properly repaired, a rebuilt title car can save thousands over buying a regular used car.

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Final Thoughts: Get the Best Salvage Title Car Insurance Today

If you own (or plan to buy) a rebuilt title car, don’t assume you’ll have to overpay for insurance—you still have options.

✔ Compare multiple insurers to find the best rate.
✔ Start with liability-only coverage to keep costs down.
✔ Provide inspection documents to prove your car is safe.
✔ Take advantage of discounts to lower your premium.

By following these steps, you can stay insured at a reasonable cost—just like my brother-in-law did! 🚗💰