The Expert Podcast

• Salvage Title Vehicles: What happens when you purchase a vehicle with a salvage title from an auction like Copart or IAA, and you plan to fix it up for the road?
• Rebuilt Title: After repairs, the vehicle can be reclassified with a rebuilt title, but there are several insurance considerations.

1. Inspection by a Private Mechanic:
   • Before taking your vehicle to the state inspection, ensure it's checked by a private mechanic.
   • This step helps avoid a more intensive state inspection if the car fails the first time.
2. State Inspection:
   • Each state has different criteria, but typically, the vehicle's physical condition must be satisfactory, and you must have proof of repairs.
   • Be prepared with receipts for all major parts and repairs.
   • The state inspector will also check the original salvage claim to confirm repairs were completed properly.
3. Dealing with Complicated Cases:
   • If the vehicle had a prior history of theft or flooding, repairs may be more complicated, and these issues may need to be resolved before moving forward.
4. Receiving the Rebuilt Title:
   • Once the state inspection is passed, you will receive a rebuilt title from your DMV or state titling agency.

• Insurance Challenges:
  • Many insurance companies do not offer coverage for rebuilt title vehicles.
  • Even when insurance is available, some companies may only provide minimum liability coverage, excluding comprehensive insurance.
• Potential Issues with Insurance:
  • Be sure to confirm in advance what insurance options are available. If your current insurance company doesn't offer coverage for rebuilt vehicles, you may need to contact another provider.
  • Insurance limitations may prevent you from recovering full losses if the vehicle is damaged in the future.
• Resale Value:
  • Vehicles with salvage or rebuilt titles can have lower resale value.
  • Buyers may face difficulties obtaining insurance for these vehicles.
  • If you plan to finance the vehicle, some finance companies may refuse to finance cars with a salvage or rebuilt history.