Yes, a rebuilt title can affect insurance. As not all insurance companies cover cars with a rebuilt title. So, insurance for a rebuilt title car is more expensive and it provides less coverage.
Got a cheap car with a rebuilt title? Thinking about purchasing it?
Hold on a second, buddy. As you need to think about getting auto insurance too. So, does a rebuilt title affect insurance?
Well, we are about to find out. Because in this post I am going to honestly answer whether a rebuilt title affects insurance. If so then how, how to get insurance for rebuilt title car, and Should you buy a car with a rebuilt title? So, stick here till the end.
Let’s start by understanding what a rebuilt title is and why it can affect insurance.
What Is A Rebuilt Title?
A rebuilt title is given to used vehicles that have been previously declared “totaled” or actual total loss by an auto insurance company and have been repaired to a roadworthy condition.
In a lifecycle, a car faces several accidents and if it’s insured then it receives coverage. However, sometimes a car might face a deadly accident and goes into an unrepairable condition. At that point, an auto insurance company declares the car a salvage title. Meaning it is not in a roadworthy condition.
It is illegal to drive a salvage title car. But a dealer or mechanic can buy these salvage title cars and restore them to roadworthy conditions. After passing a safety and anti-theft inspections from the state authority auto insurers give salvage title cars a “rebuilt title”.
So, in simpler terms, a rebuilt title indicates that the vehicle has been repaired and rebuilt and may carry a history of prior damage. The value of a vehicle with a rebuilt title is lower than a clean title car.
So, if you plan to buy a reconditioned car, then this is how you find the title of a car before buying
- Green= Clean Title.
- Blue= Salvage Title.
- Orange = Rebuilt Title.
So, does a rebuilt title affect insurance?
Does A Rebuilt Title Affect Insurance?
Yes, a rebuilt title affects insurance. Because most insurance companies do not offer insurance coverage for a rebuilt title car. It might not be as profitable for them in the long run.
On the other hand, it’s hard to get full coverage insurance for rebuilt title car. But how does it affect insurance?
How Does A Rebuilt Title Affect Insurance
A rebuilt title can increase insurance premium and also decreases insurance coverage.
As rebuilt tile cars had a previous severe accident history so, it becomes risky to insure these cars. Because these cars might need more maintenance and safety features might not work properly. So, most insurance companies do not offer insurance for rebuilt title vehicles.
However, some insurance companies take advantage of this situation and sell insurance premiums for rebuilt titles at a higher rate. As a result, insuring a car with a rebuilt title becomes more expensive.
Moreover, most of the time rebuilt title cars do not get full insurance coverage no matter what auto insurance package you purchase. With a rebuilt title, your stolen car insurance claim can also get rejected. So, should you buy a car with a rebuilt title?
Should I Buy A Car With A Rebuilt Title?
Actually, it depends on preference. However, here I am going to provide some insights so that you can decide for yourself.
Pros And Cons Of Buying A Car With A Rebuilt Title
Here are the pros and cons of buying a rebuilt title car
Pros
- The price of rebuilt title car is substantially lower than a regular title car.
- Although the car is restored but it has gone through several inspections by state authorities.
- If bought carefully then a rebuilt title vehicle can be worth every penny.
Cons
- It’s hard to get insurance for a rebuilt title vehicle.
- Insurance premiums are a lot more expensive than regular title cars.
- You won’t get full insurance coverage for a rebuilt title vehicle.
- It might need a lot of maintenance.
Now, let’s look at some cost estimations.
How Much Does A Rebuilt Title Devalue A Car?
It’s hard to estimate how much a rebuilt title can devalue a car. However, on average, a car with a rebuilt title can be worth 20% to 40% less than a similar car with a clean title.
The exact amount that a rebuilt title devalues a car can vary greatly. Because it depends on several factors such as
- The Make
- Model of the Car
- Year it was built and registered
- Current Condition
- Accident Severity
- Restoration and rebuilding quality
But usually, a rebuilt title can devalue a car by 20% to 40%. However, some high-end luxury vehicles may only experience a 10% reduction in value. On the other hand, lower-end cars may see a reduction of as high as 50%.
Anyhow the value of a car with a rebuilt title will depend on the individual buyer and their perception of the car’s history and condition.
how much is Rebuilt title insurance cost?
Rebuilt Title Insurance Cost
It’s hard to say the exact insurance premium price for a rebuilt title car. However, generally, a rebuilt title insurance cost is 15% to 20% higher than clean title vehicles.
As a rebuilt title car is more prone to insurance claims and only a few companies offer insurance for rebuilt title vehicles. So, insurance premiums for rebuilt title cars can be as high as 15%-20% more than the same model clean title car. For the premium segment, rebuilt title cars, insurance premiums can be as high as 30% or more.
So, from a cost perspective, it is not suggested to get a car with a rebuilt title. However, if you get a better deal then you can buy one. So, how do you get insurance for a rebuilt title?
How Do You Insure A Rebuilt Title Car
Here is how to insure a car with a rebuilt title
- Before the purchase please make sure the vehicle has a valid rebuilt title.
- You must get a secondary inspection from a certified mechanic to get rebuilt title insurance.
- After that find out which companies offer rebuilt insurance.
- Get different insurance quotes and compare their coverage and price.
- Lastly, choose the most suitable one for you.
FAQs
Here are some of the frequently asked queries related to this topic.
Does Rebuilt title affect Insurance in Florida?
Yes, a rebuilt title can affect insurance in Florida. Insurance companies view cars with rebuilt titles as being more of a risk than cars with clean titles. This is because cars with rebuilt titles have been involved in a major accident or flood. So, they are more prone to damage.
As a result, insurance companies typically charge higher rates for cars with rebuilt titles. The exact amount of the increase will vary depending on the insurance company and the specific car. In addition to higher rates, insurance companies may also offer less coverage for cars with rebuilt titles.
Can you Insure a Rebuilt Title in NY?
Yes, you can insure a rebuilt title car in New York. However, it may be more difficult and expensive than insuring a car with a clean title.
Insurance companies typically charge higher rates for cars with rebuilt titles because they are considered to be more of a risk. In New York, the insurance rate can be as high as 40% or more for a car with a rebuilt title.
How do I change a salvage title to a clean title?
It is not possible to change a salvage title to a clean title. A salvage title is issued to a vehicle that has been damaged to the point where it is considered a total loss by an insurance company. Once a vehicle has been issued a salvage title, it cannot be changed to a clean title, even if it is fully restored.
However, you can get a rebuilt title for a salvage car. But insuring it can cost you quite a buck.
In Summary
A car with a rebuilt title can greatly hamper the availability, affordability, and coverage of auto insurance. So, before purchasing a rebuilt title car on a great deal please make sure that paying extra on insurance will be worth it or not.
Lastly, if you find it hard to insure a rebuilt title car then contact an insurance agent.
