Rebuilt Title Insurance - Is that possible?
If you want to get coverage for a Rebuilt Title you want to know the type and severity of the damage the vehicle has had. Liability coverage should not be a problem with rebuilt vehicles. But it is unlikely that you will be able to get full coverage for a vehicle with a frame or water damage at all because these are from the highest risk category and have the lowest ACV. Even liability coverage with these damage types may ba a problem becuase of high possibility of failure in different systems while you are driving it. For instance, failure in electric systems on a salt water damaged vehicle may result in stop light or turn signal failure as so cause collision. Insurace companies understand these risks.
Can I Insure a Rebuilt Title?
Rebuilt title insurance is another issue a rebuilt car buyer may face. The common problem is that many insurance companies do not offer physical damage coverage (comprehensive and collision) for rebuilt title cars and give you only liability coverage. If you are seriously considering buying a rebuilt car, check insurance companies that offer coverage for such vehicles and get a rebuilt title insurance quote before you buy. In some cases you may get full coverage (comprehensive + collision), for instance, if your vehicle is a theft recovery or was exposed to hail damage. However, there may be provisions to your contract excluding certain types of loss or damage. For instance, settlement for cosmetic damage may be excluded if your vehicle has been exposed to hail damage.
How does rebuilt title affect insurance premiums, rates and settlement amount?
If you get a comprehensive the coverage amount may be less than you expect and the premiums higher. The reason for that is that few companies can offer full coverage for rebuilt vehicles so they can keep their rates high due to low competition and in order to compensate for higher risks. However, rates should not increase manyfold.
Which companies offer insurance for rebuilt vehicles?
Contact GEICO, State Farm, AllState or Progressive. These are the companies with the largest pool of insured vehicles, which allows them to work with high-risk products, such as insurance for rebuilt cars. There is no answer to the question which insurance company is the best, contact the companies and request quotes, it's free. Although Rebuilt title insurance in Florida, Texas and Georgia is also available, insurers may be much more cautious about the cars's history, taking into view possibility of water damage or title washing before issuing insurance for a rebuilt title car.
Rebuilt insurance tips
Always contact car insurance companies well ahead of buying a rebuilt title car! Remember this simple rule: you don't know much your rebuilt title car really costs and its real value if you don't know its history and the cost of insurance. Provide VIN number, ask if the can cover that vehicle and request quotes. Getting a decent insurance plan can turn out a big headache with a rebuilt title car. It's a great way to go to consider several cars at once and getting quotes in advance for all of them. You may have to show the copies of repair receipts or other documents proving that the cars was rebuilt properly.
Insurance rates for rebuilt titles should not differ much from those with clean titles, what differs is damage coverage because of lower ACV (Actual Cash Value). However, lower coverage is only just because you buy the vehicle cheaper and I wonder why some drivers who purchased their vehicle at 60% of the common market price for the same vehicles are so astonished about lower ACV. Some rebuilt car owners report that insurance rates were 3 times as high as with "clean" titles. However, I think if they shopped around they could have got better terms. Just don't put it off until the very last day and never start to search for insurance AFTER buying the car.
Never, never dismiss or try to conceal the fact that the vehicle has or had a rebuilt title in the past, even if your current title is clean when buying insurance (though it is not recommended to buy such a car at all!). Always disclose the fact that the vehicle is a rebuilt type. Even if you manage to get a cheap coveragefor concealing a salage / rebuilt history, your settlement clain may be regected when an accident or theft takes place and, in addition, you may be blacklisted and banned from many insurance companies for future. If your insurance agent seems to overlook the rebuilt title, don't swallow it. At this stage, the truth is not so important because now it's you who's paying. But when you car receives a damage or any other loss, you may get no compensation.
If finding full coverage for your rebuilt title car seems problematic, contact the facility that reconstructed the vehicle after the damage or hire a qualified mechanic and obtain a report on the current condition of the vehicle.
Mind that comprehensive and collision coverage may be much lower that you expect.
Don't be mislead about salvage title and rebuilt title insurance. Rebuilt salvage title insurance may be hard but still possible to get, salvage title insurance in impossible to get.
What if I need to make insurance claim....
You rebuilt title car may be totaled again some day. Be prepared that the insurance company will attempt to lower compensations 2-fold by stating your vehicle has a low ACV or even deny your claim on a policy. This doesn't mean that you won't receive the compensation that you should be yours by the law. It's a common practice for insurance companies to find every reason to deny claims or offer lower payouts because a certain percent of the customers are not the fight type: they will not insist and put up with what they are offered, and this is very easy money for the insurance company! Don't swallow that! Just be persistent - and in most cases the company will meet your claim and pay what is due and you won't have to file a lawsuit. They are not interested in spending much time and efforts fighting you or losing a court case.
Rebuilt title insurance in UK
In UK, getting rebuilt title insurance maybe problematic because a rebuilt title car is an exported one. However, if the car meets all all the country's safety and technical requirements, you have a chance.
Get insurance quotes for rebuilt cars not just before you buy the car, but even before you have it inspected buy a mechanic. Don't get into a situation when insurance costs will devour all the finance you saved on purchasing a reconstructed vehicle instead of one without a salvage title in the history.