Insurance for rebuilt / salvage titled vehicles?

[SC Maintenance]

Thinking of buying back the car the kid wrecked. I have the SC salvage title process figured out - there is no inspection required by the state - you just send a form and a bunch of other things including receipts to a special place at the DMV.

However to stay on her current insurance there is a inspection form needed to be completed by a licensed mechanic and returned. Its nothing special - normal stuff - lights, glass, any damage, etc.

However I am wondering if she would have to have it re-inspected every time she changes insurance? I am talking liability only - no collision / comp.

Anyone here with a salvage titled vehicle have any input? When you changed insurance companies were there any hoops to jump through?

 

[ineptizoid]

I've got an old Jeep with a rebuilt title, Progressive didn't have any problem insuring it with liability and comprehensive, then I changed to State Farm earlier this year to save a little money, they also didn't push back on issuing a liability/comprehensive policy. Adding collision coverage would've doubled the price, can't see any reason for collision coverage on a 25-yr-old vehicle.

My understanding is that insurance companies view salvage titles differently from rebuilt titles, and I've been told some companies won't touch salvage titled vehicles at all. I also had a motorcycle with a rebuilt title at one time, and had no problem getting a liability-only policy with Progressive.

 

[DirtMover]

My daughter's car was a salvage title. Our State Farm agent just had my wife take a picture with her phone and send it via SMS. No problem with getting full coverage.

 

[The_Jeff]

Are you trying for full coverage? I think they just want an inspection that the car is in one piece, so people don't scam them on the next accident.

My mom went through this changing insurance companies; she had to go to a random tire store to get an insurance inspection done to make sure there weren't "preexisting conditions."

I've had a couple rebuilt cars-- someone else rebuilt them-- and had no issues getting liability only coverage. They didn't even ask or make note of the title status.

 

[SC Maintenance]

Are you trying for full coverage? I think they just want an inspection that the car is in one piece, so people don't scam them on the next accident.

My mom went through this changing insurance companies; she had to go to a random tire store to get an insurance inspection done to make sure there weren't "preexisting conditions."

I've had a couple rebuilt cars-- someone else rebuilt them-- and had no issues getting liability only coverage. They didn't even ask or make note of the title status.

Hmmm, she has full coverage - but no we wouldn't want that going forward - salvage title has no real value.

I will have her ask if that is for full coverage. If so she can drop it. Thanks!

 

[nomas]

I had a Tundra with a salvage title . I didn't even realize it until I sold it 5 yrs later . Obviously the Insurance company didn't know or care .

 

[Owen Lucas]

For liability only, they likely won't care every time you reinsure.

But in your case, same policy, total loss -> driveable, makes sense.

Adding 1st party might flag a photo inspection by some companies.

 

[fantastic]

I think the only reason they're requesting that information is they were the insurance she had at the time of vehicle loss. After finishing the DMV process you shouldn't need to do anything but give them the vin & $.

I bought a "Prior Salvage" titled 2002 Saturn L200, here in MO, & never had any issue getting it insured.

 

[JTK]

As long as the proper process for your state has been followed, it should be no problem and not cost any more to insure than a "normal" vehicle. My 2016 Malibu was a salvage vehicle. No issues at all insuring it.

 

[wtd]

One of my 92 Cavaliers has a salvage title and in the 20 years that I've owned it, I have never had a problem getting it insured except for one weird situation.

Funny thing is that at one time I had Hartford as my insurance. I'm also an AARP member and they offer reduced car insurance through Hartford. I called to get a quote to see if it would be cheaper than what I was currently paying. They told me that they would insure all of my vehicles except for my Cavalier with the salvage title. I told them that the car was currently insured through Hartford and they told me that the discounted rates were through a different part of Hartford and that they didn't insure salvage vehicles. I told them that was the biggest bunch of BS I had ever heard of. Not long after that Hartford raised their rates quite a bit and my broker got me with another company.

 

[Tdbo]

My wife had a series of rebuilds, and had both a Dodge Daytona Shelby and a Hyundai Elantra while we were dating.
This was because her Dad ran his own auto body business, and did rebuilds as a side gig and kept himself and his family in them.
They never had any hassle insuring them. The FIL and MIL were with Auto Owners, and the wife was with State Farm.
I never partook of the offerings, much to the chagrin of FIL and MIL.
The one time that I tried he had a Chrysler convertible. I made him an offer to pacify Mrs. Tdbo.
I followed her directions, and it turned into much hubbub and a rift in the family for several years.
I proceeded to buy a clean titled Chrysler convertible that was a year newer with less miles for less money.
Her Dad's employee told me I bought the better car.
The good news was that I was never pressured to buy a car from them again.

 

[ls1mike]

We thought the kids 03 Duramax had a salvage title. USAA didnt care. They insured it. When we received the title from WA state it was clean.

 

[dfarr67]

My wife had a series of rebuilds, and had both a Dodge Daytona Shelby and a Hyundai Elantra while we were dating.
This was because her Dad ran his own auto body business, and did rebuilds as a side gig and kept himself and his family in them.
They never had any hassle insuring them. The FIL and MIL were with Auto Owners, and the wife was with State Farm.
I never partook of the offerings, much to the chagrin of FIL and MIL.
The one time that I tried he had a Chrysler convertible. I made him an offer to pacify Mrs. Tdbo.
I followed her directions, and it turned into much hubbub and a rift in the family for several years.
I proceeded to buy a clean titled Chrysler convertible that was a year newer with less miles for less money.
Her Dad's employee told me I bought the better car.
The good news was that I was never pressured to buy a car from them again.

A friend who did quality autobody work said to me there is no money in it to properly fix a rebuild, so the money comes from shortcuts.

 

[dfarr67]

I would expect some kind of safety inspection to be requested...

 

[Tdbo]

A friend who did quality autobody work said to me there is no money in it to properly fix a rebuild, so the money comes from shortcuts.

I don't necessarily know about that. My FIL made good coin off of doing that for years.
He was certainly no hack. He once had a '35 Dodge pickup he restored featured in a national magazine.
However, he did rebuilds as a side hustle to keep his employee busy during lean periods.
So no one is going to get rich off of them.
However, being selective about what one rebuilds can be helpful.