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Home > Blog > Understanding Salvage, Rebuilt and Clean Car Titles
THURSDAY, AUGUST 29, 2024

Understanding Salvage, Rebuilt and Clean Car Titles

When navigating the used car market, you may encounter various types of car titles—salvage, rebuilt and clean. Understanding these terms is crucial for making an informed purchasing decision and obtaining appropriate insurance coverage.

What Is a Salvage Title? smiling man while driving

A salvage title is assigned to a vehicle that has been significantly damaged, typically in an accident, fire, or flood. The damage is so extensive that the vehicle’s repair cost exceeds a certain percentage of its pre-damage value. States typically dictate the percentage of a vehicle’s value repair costs must exceed to need a salvage title. In many cases, the vehicle has been declared a total loss by the insurance company.

Some insurers limit the amount of coverage they provide for vehicles with salvage titles.

What Is a Rebuilt Title?

A rebuilt title is issued for a previously salvaged vehicle that has been repaired and restored to a roadworthy condition. States may require the vehicle to undergo an inspection to ensure that it meets safety and operational standards.

Insuring a rebuilt vehicle can be tricky. While some insurers may offer coverage, it’s often more complex and costly.

What Is a Clean Title?

A vehicle that has not been involved in significant accidents, floods or fires may have a clean title. This distinction doesn’t guarantee that the vehicle is safe to drive, so if you are car shopping in the used vehicle market, it’s crucial to have your mechanic look at the vehicle.

Clean title vehicles may receive standard insurance coverage without complications.

How to Get Insurance for Salvage and Rebuilt Vehicles

Salvage and rebuilt vehicles might not be covered for certain types of damage or may have higher premiums. It’s essential to discuss these limitations with your insurance provider.

Contact Gene Smith Insurance in Zephyrhills, Florida, for personalized car insurance quotes.

Posted 11:01 AM

Tags: auto insurance
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