Does USAA Insure Salvage Titles?
USAA does not insure salvage titles. But if you’ve repaired a formerly salvage-titled vehicle, you may be able to insure it with a rebuilt title.
Written by Mariza Morin
Reviewed by Jessica Barrett
Table of Contents
- Does USAA insure salvage title vehicles?
- What is a salvage title car?
- Can you get car insurance for a salvage title?
- Does it cost more to insure a rebuilt title vehicle?
- FAQs
Load full table of contents
Like most insurance companies,
USAA
does not insure salvage titles. But if you make the necessary repairs to your salvage title vehicle and pass a safety inspection (and other state-mandated standards), you can apply for a rebuilt title that can be insured.Auto insurance is much easier (and cheaper!) to come by when your vehicle has a clean title. But if you have a salvage title car, that means your insurance provider has declared your vehicle a total loss that’s no longer drivable and therefore cannot be insured. If you’re looking to restore your totaled car to its glory days, you can apply for a rebuilt title after passing a series of required tests that will make your vehicle roadworthy again.
State laws vary when it comes to salvage titles. In this article, we’ll cover what a salvage title vehicle is, why most auto insurance companies—including USAA—don’t insure salvage titles, and the types of
car insurance
you can get with a rebuilt title vehicle.Does USAA insure salvage title vehicles?
USAA does not insure salvage title vehicles, but the auto insurance company may insure a former salvage title vehicle with a
rebuilt title
.What is a rebuilt title, anyway? A rebuilt vehicle—also known as a “prior salvage”—simply means that it was once a salvage title vehicle. But it has since been repaired and deemed roadworthy after passing a required safety inspection, along with other state-mandated standards.
If you’ve been in a car accident that resulted in your vehicle becoming a total loss, it will, unfortunately, earn that dreadful salvage title name. But if you’ve completely repaired and rebuilt your salvage title vehicle, then you can apply for a rebuilt title at your state’s Department of Motor Vehicle (DMV), purchase a new car insurance policy, and be on the road in (almost) no time.
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What is a salvage title car?
A salvage title car is a vehicle that has been excessively damaged in a car accident or other incident to the point where the cost of repairs, including materials and labor, are worth more than the actual cash value of the car. If this is the case, your insurance provider will declare your damaged vehicle as a total loss. Since salvage vehicles are no longer drivable, you can’t cover them with car insurance as they are not legal to drive on the road.
But keep in mind that salvage title laws vary from state to state. While many states consider a salvaged vehicle to be a car with damage that’s worth about 75% of the vehicle’s total value, a salvage title in
Minnesota
is required if a vehicle’s damage is more than 80% of its value.Can you get car insurance for a salvage title?
You can’t get car insurance for a salvage title as it’s considered a totaled car that is no longer deemed roadworthy. But if you’ve successfully repaired a salvage title vehicle yourself or through a licensed mechanic, you can usually get insurance for a rebuilt title vehicle.
To receive a rebuilt title, your salvage title vehicle must pass a series of tests to make certain it’s road ready. Once your vehicle is deemed safe to drive again, you’ll then need to get your repaired vehicle inspected by your state’s DMV to remove the salvage title so you can hit the road once more with your rebuilt title vehicle.
What types of coverage can you get for a rebuilt title? Besides USAA, many other car insurance companies, such as
GEICO
, Allstate
, and State Farm
, generally provide rebuilt title insurance—though most insurance providers typically only offer policyholders liability coverage
.Liability insurance is considered the norm in the insurance industry for rebuilt titles. This type of insurance policy is required for nearly every state and depending on your state’s laws, but you may also be required to carry
uninsured motorist coverage
or personal injury protection (PIP)
.Considering the nature of a rebuilt title, you might also want to think about adding roadside assistance or
towing and labor coverage
to your insurance policy. This type of insurance is a great idea in the unfortunate event that the quality of your rebuilt title vehicle is not quite what you expected and you end up stranded in the middle of nowhere. In this case, you might want to carry rental car insurance
too!If you’re looking to go beyond the minimum required liability insurance to opt for
full-coverage insurance
that includes both comprehensive coverage
and collision coverage
, you may have a harder time coming across cheap car insurance—as we’ll soon explain.Does it cost more to insure a rebuilt title vehicle?
Yes—you can usually expect to pay between 20% and 50% more for rebuilt title insurance compared to a vehicle with a clean title.
Rebuilt title insurance is typically more expensive to insure due to the simple fact that the cash value of a rebuilt title vehicle is more difficult to establish. While the Kelley Blue Book value for your rebuilt title may serve as a great starting point for your vehicle’s actual cash value, considerations like past damages and repairs make the value of your vehicle much less clear.
While you might snag a great deal on a rebuilt title vehicle, they are usually believed to pose a greater risk on the road with unpredictable performance for most car insurance companies. One of the easiest ways to find cheap car insurance is by comparing
car insurance quotes online
.And though your rebuilt title vehicle’s condition and value play major roles, your car insurance rates are determined by many other important factors such as your credit score, driving record, deductible amount, and much more.
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FAQs
Are salvage title cars difficult to insure?
You cannot insure a salvage title vehicle as it has been considered a total loss by your insurance company that is no longer legal to drive on the road. If you repair your salvage title and pass the required safety inspection and other state-mandated standards, you may apply for a rebuilt title through your Department of Motor Vehicle (DMV). Once you lock down your rebuilt title, you’ll have a much easier time purchasing car insurance.
How does a salvage title impact your insurance rates?
Due to the salvage title vehicle’s history, you can usually expect to pay higher insurance rates even if you have a rebuilt title. Considering that a rebuilt title vehicle may have issues that weren’t resolved during the restoration process, most car insurance companies see these types of vehicles as being more at risk for car accidents—which will impact your insurance premium.
Can you get full-coverage auto insurance for a rebuilt title car?
While it’s possible to get full coverage auto insurance for a rebuilt title car, it might be a lot more expensive as the actual cash value of a rebuilt title vehicle is more difficult to determine. Most auto insurance companies usually offer liability insurance for rebuilt title cars.
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