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When a salvage vehicle has been repaired and certified for use on the road once again, the title can be changed to a 'rebuilt' status. The term 'branded title' refers to a car title that is no longer a clean title.
Yes, you can insure cars with rebuilt titles. Not all insurance companies cover rebuilt titles, however. Far fewer companies will sell you comprehensive coverage for a rebuilt title car. The main reason for this: It's difficult for them to determine exactly how much a car with a rebuilt title is worth.
A rebuilt title is given to a used car that was deemed salvaged. Basically, it's a car that has been significantly damaged to the point where an insurance company says it's not worth repairing. However, if you're handy and do your own repairs, a used car with a salvage title can be a great deal.
The reasons for the salvage title vary. It could be the result of flood damage which, even though cosmetically repaired, could lead to mold issues later a repair after being totaled in an accident, hail damage, smoke damage from a fire.
Title washing sidesteps those laws to scrub the brand off the car, raising the vehicle's value in the process and removing any lien holders who may be attached to it. Title washing typically involves moving the vehicle to a state where the brand isn't recognized so that it can be registered with a clean title.
Yes, you can insure cars with rebuilt titles. Not all insurance companies cover rebuilt titles, however. Also, some of the companies that will sell you auto insurance for a car with a rebuilt title will only sell you liability coverage. Far fewer companies will sell you comprehensive coverage for a rebuilt title car.
Rebuilt cars for sale can also be a great deal under the right circumstances. Comparatively, a car with a rebuilt title can be purchased for 20% to 50% less than one with a clean title. However, the flip side is that your car is worth that much less than the same model with a clean title, and it's less desirable.
Companies like Nationwide, Progressive, and Entrance offer basic liability coverage for RVs with rebuilt titles. Not many companies offer full coverage because there's too much of a risk for the carrier.
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