What is a salvage title? This question is about Totaled Car Guide

What is a salvage title?

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This question is about Totaled Car Guide

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@WalletHub • 02/01/21 This answer was first published on 02/01/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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A salvage title is a title issued for a car that an insurance company has declared a total loss, meaning the vehicle is too damaged to be worth repairing. The salvage title will stay in place unless the car is repaired and inspected, after which the driver can get a “rebuilt” title and legally drive the car again.

After it’s damaged, a car could also be designated “non-repairable” or issued a “junk” title. That would mean the damage is so extreme that no one is even allowed to rebuild the car. Instead, the vehicle could be sold for parts or destroyed.

Since a salvaged car is less damaged than a non-repairable car, you’re allowed to rebuild it. However, some insurance companies worry that rebuilt cars aren’t worth their sticker price. The quality of the repair work matters a lot, and issues could still show up down the road.

That doesn't mean you can't get insurance for a car that previously had a salvage title. It just means that you might have to search a little harder to find insurance, and that you might not be able to get the same coverage you could get for a non-salvaged car.

There are a few major insurers that sell coverage for previously salvaged cars, including Progressive and The Hartford.

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Does Geico cover salvage titles?

Yes, Geico covers formerly salvage-titled vehicles. If the car was rebuilt and inspected after being salvaged, Geico offers liability-only insurance or full coverage if the vehicle has an additional inspection. You cannot get coverage from any reputable insurer for a car currently holding a salvage title, however, as such vehicles are illegal to drive.

A car is given a salvage title when an insurance company declares it a total loss, meaning that it is unable to be repaired...

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Does USAA cover salvage titles?

Yes, USAA covers formerly salvage-titled vehicles. If the car was rebuilt and inspected after being salvaged, USAA offers full coverage insurance. You cannot get coverage from any reputable insurer for a car currently holding a salvage title, however, as such vehicles are illegal to drive.

A car is given a salvage title when an insurance company declares it a total loss, meaning that it is unable to be repaired or the cost of repairs exceeds the vehicle's value....

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Does Safeco cover salvage titles?

Yes, Safeco covers formerly salvage-titled vehicles. If the car was rebuilt and inspected after being salvaged, Safeco offers full coverage insurance. You cannot get coverage from any reputable insurer for a car currently holding a salvage title, however, as such vehicles are illegal to drive.

A car is given a salvage title when an insurance company declares it a total loss, meaning that it is unable to be repaired or the cost of repairs exceeds the vehicle's value....

read full answer

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