What is a rebuilt or salvage title?


The definition of a rebuilt or salvage title differs from state to state, but there is a general definition for such. Rebuilt or salvage titles, also called reconstructed titles, are placed upon vehicles that had been severely damaged or totalled, and were restored to operation. This title is to inform people about the history of the vehicle; that at some point the insurance company had deemed it a “total loss” due to accident, flood, or fire damage. In some states, it may even happen to be a stolen vehicle.

Most states require that restored vehicles be inspected by a licensed garage or body shop along with the Department of Motor Vehicles before it could be granted a rebuilt or salvage title. With that title, the vehicle would be allowed to be driven again. Guidelines for getting a rebuilt or salvage title differ in each state, with some inspections being minimal or thorough to declare the car roadworthy again.

As mentioned before, rebuilt or salvage titles are defined differently in some states but generally refer to the same use. In Florida, salvage titles are issued to vehicles that had been deemed total losses and also indicate whether that vehicle is “rebuildable” or “not rebuildable.” In Georgia, anyone who wants to rebuild or repair a salvage vehicle is required to apply for a rebuilt title. In Nevada, vehicles that had some major components replaced titled as Rebuilt, even if these vehicles do not meet the definition of a salvage vehicle.

There is a way for rebuilt or salvage titles to be converted back to a regular title. The vehicle must go through a HP 106 inspection by the State Highway Patrol, and there is also a $50 fee to be paid. Application for the inspection could be obtained from the State Highway Patrol.

If the car receives extended damage or totalled, the insurance company would reimburse the owner with the car’s actual cash value (ACV). But in regards to insuring a vehicle with a rebuilt or salvage title, many companies would not insure it. And even if the car does get insured, one’s insurance company would pay less for it when it is severely damaged again. This is because the rebuilt or salvage title lowers the value of the car. Thus, the reconstructed vehicle is considered by insurance companies and other people to have less worth than other cars that are more new.