Does USAA Insure Cars with Rebuilt Titles?
USAA may offer rebuilt title insurance, but you’ll pay a lot more for coverage than you would with a clean title car. Learn more here.
Written by Bonnie Stinson
Reviewed by Kathleen Flear
USAA insures cars with rebuilt titles, but they may only offer liability coverage and not full-coverage insurance. You’ll have to provide extra documentation—and pay extra—to insure your rebuilt title car, whether you go with USAA or another provider.
Rebuilt title cars can be a great deal, costing a fraction of the cost of a clean title car. If you’re certain a
used car is not a lemon
, then buying a rebuilt title car might be a smart choice. However, finding car insurance
for your new-to-you car is going to be tricky. USAA is one of several car insurance companies that is known to insure rebuilt title cars. Here’s what you need to know about how to apply, what coverage to get, and how to get the best price.
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversWhich insurance companies cover cars with rebuilt titles?
Firstly, you need to know that there’s no guarantee that any of these companies will insure your
rebuilt title motor vehicle
. Insurance providers are generally quite hesitant to insure these types of cars. You should be prepared to provide excellent documentation.Next, make sure you have a rebuilt title and not a salvage title.
A salvage title car is one that has suffered extreme damage in a car accident. These are usually totaled cars where the salvage title is part of a claim settlement payout. A salvage title vehicle cannot be insured.
A rebuilt car is roadworthy. If you decide it’s worth the cost of repairs, you can fix a damaged vehicle and then get an inspection. If it passes, the DMV will issue a rebuilt title. Rebuilt title vehicles are eligible for insurance.
Finally, bear in mind that many auto insurance companies will offer
liability-only coverage
on a rebuilt title. That’s normal in the insurance industry for rebuilt cars, so don’t be offended.Here are some insurance companies that may offer rebuilt title insurance:
- Infinity
- National General
- Root Insurance
- The General
If you want
full coverage
with comprehensive
and collision
insurance, prepare to shop around for quotes from multiple companies. The insurance premiums for a rebuilt car title might be between 20 and 50% higher than the rate for a clean title car.What is the best type of car insurance for a rebuilt car?
Liability coverage is required in almost every state, for every driver. This helps pay for other people’s medical costs, vehicles, and damaged property if you get into an accident and are at fault. Furthermore, you must purchase enough car insurance coverage to meet your state’s minimum requirements, which may include additional types of coverage, like
uninsured motorist coverage
or personal injury protection (PIP)
.On top of liability insurance, collision and comprehensive coverage offer protection for your own car if it gets damaged by a range of incidents, from a car accident to a falling tree branch.
Roadside assistance (aka
towing and labor coverage
) might come in handy, too, if you’re not certain about the quality of the rebuild. While many rebuilt title cars are fixed up to near-factory conditions, you never know!Is car insurance more expensive for rebuilt vehicles?
Yes. You can expect to pay between 20 and 50% more for a policy on a rebuilt vehicle.
That’s because the cash value of a rebuilt title car is difficult to ascertain. The Kelley Blue Book value for your car is a good estimate, but other damages and repairs make this number impossible to pin down.
To get a rebuilt title, you usually have to bring your vehicle to be inspected. But this inspection process is not universal. A mechanic could skip over certain structural issues or purposefully ignore dangerous problems. Car insurance companies are very aware of this issue.
Rebuilt vehicles have unpredictable performance and higher risk—and that higher risk translates into costly insurance.
You should always shop around with multiple companies to find the lowest possible rate. However, you’re unlikely to find a rate close to your clean title car’s premium.
Once you are ready to purchase a policy, gather the following items to submit to the company:
- Mechanic’s inspection
- Detailed photos of the car
- The original repair estimate, including the damages fixed
Bear in mind that car insurance rates are highly variable.
Your car’s value and condition are key factors, but so are your credit score, your deductible amount, and how much liability coverage you need. Plus, you need an insurance policy that complies with your
state laws on minimum coverage
.The best car insurance for you is probably slightly different than what’s best for your neighbor. Get car insurance quotes from multiple companies to see who offers the lowest price.
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FAQs
Are cars with rebuilt titles worth buying?
Rebuilt titles are certainly cheaper than clean title cars. If you are confident that the car has been repaired to a high standard, then you get a great deal on a rebuilt title car. Just be aware that you might struggle to get full-coverage car insurance.
What is the difference between a rebuilt title and a salvage title?
A salvage title car has been declared a total loss under the state’s guidelines. These cars may not be driven on public roads and cannot be insured. A rebuilt title is earned once a salvage car has been fixed up and tested by a qualified mechanic. Rebuilt title cars can be registered, insured, and driven on public roads.
