What is rebuilt title mean

When you purchase a salvage rebuilt vehicle, you are accepting that extensive damage has occurred to the vehicle. In some cases, there may still be undisclosed or unseen damages that could arise at a later date. Likewise, even if the vehicle has been fully repaired, you may have trouble finding insurance coverage for the car.

In many cases, those carriers who insure vehicles with a rebuilt title may charge the same premium as a similar vehicle with a clean title, even if your vehicle is worth much less. Each state has its own regulations, with some being more stringent than others. If you are an experienced mechanic or know one who can do great work inexpensively, then a salvage titled vehicle could be a great buy. In a few states like Ohio, something as innocuous as an abandoned vehicle could earn the salvage title distinction.

Next, see if you can determine who did the repair work and the quality of their work. Taking these steps will help make the process smoother if you are interested in purchasing a vehicle with a rebuilt title.

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Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance. Share this page. Bankrate Logo Why you can trust Bankrate. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions.

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Key Principles We value your trust. Bankrate Logo Insurance Disclosure. What are the differences between a salvage title and a rebuilt title? To help you have a better understanding of what each title means, here is a closer look at both:. Read more From Grace. She has written about auto, homeowners, renters and life insurance.

She holds an M. Sc from New York University in Corporate Communications and has spent most of her professional experience writing about finance and tech topics. About our review board. This refers to a car or a vehicle which has been repaired and is now reregistered with the California DMV. According to the New York Department of Motor Vehicles , a salvage vehicle has to meet certain criteria. In order for a car to be salvaged it:. Florida law states that a vehicle involved in an accident is a salvage vehicle, if it is estimated that the car will cost 80 percent or more of its value to replace it.

For cars with extensive damage and later restored, the owner of the vehicle has to obtain a rebuilt title from the Florida Department of Motor Vehicles. The title serves as notification to subsequent owners, that the vehicle has been rebuilt or assembled from various elements and parts.

It is to your benefit to check with your local department of motor vehicles to find out what a rebuilt title is in your respective state.

Once you buy a vehicle, you can and should expect to receive a title for that vehicle. The title is vital because it has details such as the VIN or the vehicle identification number, year, make, model and the license plate number.

Your car title can also include gross vehicle weight. Generally, when you buy a car, you will get a clean title. But if you are buying a used car, you could be getting a rebuilt or a salvaged car title. Generally, a car gets a salvage title if that vehicle has sustained a certain amount of damage and it is declared a total loss. Usually state officials or car insurance companies will indicate the car is a total loss. In lots of states, a car can receive a salvage title if the car is stolen. Check with your local state laws.

Regardless of what is done with the vehicle, a salvage title car cannot be driven or registered. A car is issued a salvage title, once it has been damaged in an accident, crash or a natural event. Lots of times when a salvage title is issued, the car is usually sold and then scraped. Other times, the car may be rebuilt, depending on the damage. Junk and salvage titles are not the same. If it's the former, the new owner can apply for a rebuilt title from their state department of motor vehicles after repairs are completed.

Some unscrupulous sellers may attempt to hide the fact that a car had been totaled by transporting it to another state, repairing it, and applying for a new, clean title—a process known as "title washing. Despite their checkered past, it isn't always a bad idea to purchase a vehicle with a rebuilt title. Here are some pros and cons, starting with the pros:. Buying a car with a rebuilt title is a gamble. If you're willing to take the risk—and all goes well—it could turn out to be a rare bargain.

Otherwise, it could end up costing you more than simply buying a car with a clean title in the first place. Credit Union National Association. Insurance Information Institute. Car Insurance. Career Advice.

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