Does State Farm Insure Salvage Title Vehicles?
Insurance companies, State Farm included, cannot legally insure cars with salvage titles until they are issued a rebuilt title.
Written by Cameron Thiessen
Reviewed by Amy Bobinger
Table of Contents
- Does State Farm 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
State Farm does not insure vehicles with salvage titles, because driving a vehicle with a salvage title is illegal. However, salvage vehicles can be repaired, and if they pass inspection, they receive a rebuilt title. You probably won’t have any problem getting State Farm to insure a car that currently has a rebuilt title, but coverage options may be limited.
Keep reading to learn what earns a car a salvage title, how to get a rebuilt salvage title, and what to expect when insuring a car that has a rebuilt title.
Does State Farm insure salvage title vehicles?
No—in fact, no reputable insurance company will insure vehicles with salvage titles, since it is illegal to drive a salvaged vehicle that has not been granted a rebuilt title on public roads.
State Farm is known to offer insurance policies for vehicles with rebuilt status, but the options are often limited. For example, they might only offer you
liability coverage
, rather than giving you the option of a full-coverage
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What happens if my State Farm insured vehicle is deemed a total loss?
If State Farm determines that your vehicle is a total loss after an accident, you will need to prepare it for salvage.
Clean all of your personal items out of the car, delete your personal information from the infotainment system, and collect any keys and paperwork—including the current title—that you have for the vehicle. In some cases, you might be provided with a rental vehicle during the process of replacing your totaled vehicle. If replacement of the vehicle is covered by an insurance claim, you’ll receive a payout based on its actual cash value (ACV) after paying your deductible and any applicable fees and/or taxes.
When your car is salvaged, transfer the title and any financing information over to State Farm. You might also need to update your insurance policy if the totaled vehicle was insured under the same policy as other vehicles in your household.
What is a salvage title car?
A salvage title on a car means that this car was determined to be a total loss write-off by the insurance company that was insuring it when it was destroyed. Insurance companies will write off a vehicle and give it a salvage title if the cost of repairs needed is greater than the actual value of the vehicle. A car with a salvage title is not considered to be road-worthy, and cannot be legally driven on public roads.
Vehicles are usually branded with salvage titles after a bad accident or after the vehicle has sustained severe weather damage. Purchasing a car with a salvage title usually isn’t the best financial decision unless you’re a mechanic who can fix it at low cost.
In some cases, a vehicle will be issued a non-repairable title. Cars branded as non-repairable cannot be issued a rebuilt title. If you purchase a non-repairable vehicle, you are only allowed to use it for parts.
MORE:
What is a rebuilt title?
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No—since it is illegal to drive a car with a salvage title, car insurance companies will not write policies for them.
The only way to get car insurance for a salvage-titled car is to have the car repaired and inspected so it can be issued a rebuilt title.
Common coverage options for rebuilt titles
One downside to driving a rebuilt vehicle is that your car insurance options may be limited. State Farm, like most car insurance companies, will likely provide you with liability coverage, but there may be limits in place regarding optional insurance coverage if there was a salvage title in the vehicle’s history.
For example, you might not be able to get comprehensive or collision insurance for the full value of the car. In some cases, liability coverage will be all that’s offered—just enough to meet your
state’s minimum insurance requirements
so you are able to legally drive the vehicle. Just bear in mind that your insurance quotes will depend on more factors than just the vehicle’s title—including the vehicle’s value and age. One of the best ways to get
cheap car insurance
is to compare quotes from a variety of different providers, so you know who can offer you the best deal.Does it cost more to insure a rebuilt title vehicle?
Sometimes—many insurance providers do charge extra for insurance on rebuilt titles compared to clean titles. Plus, if you have to make an insurance claim for a rebuilt car, expect a lower-than-usual payout, since a rebuilt title can lower the market value of your motor vehicle by 20%–50% of its Kelley Blue Book value. Of course, auto insurance rates for a rebuilt title that only has liability insurance will probably still be cheaper than insurance rates for a vehicle with a clean title and full-coverage insurance.
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FAQs
Are salvage title cars difficult to insure?
Salvage title cars are theoretically impossible to insure, since it is illegal to drive a vehicle with a salvage title. You should be wary of any insurance company that is trying to sell you an insurance policy for a salvage car.
However, if your car is granted a rebuilt title, it will not be difficult to find adequate liability insurance, but it will likely be difficult to purchase additional coverage like collision coverage or comprehensive insurance.
What’s the difference between a salvage title and rebuilt title?
A salvage title is given to a car that has been deemed to be totaled and/or written off by an insurance company. A rebuilt title is given to a vehicle that had a salvage title but was repaired and passed state inspection. Salvage cars cannot be legally driven, but rebuilt ones can.
Can you get full-coverage auto insurance for a rebuilt title car?
It is not common for auto insurance companies to offer full-coverage rebuilt title insurance. Rebuilt cars are usually offered liability coverage, and sometimes they are offered limited forms of collision and/or comprehensive coverage.
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