What is a rebuilt title? (2025 Buyer’s Guide)

What is a rebuilt title? A rebuilt title goes to vehicles that were previously totaled and then repaired.

If you’ve been shopping for a used vehicle, you may have come across cars with rebuilt titles. A rebuilt title can affect your car insurance coverage options, so it’s important to understand what it means before buying to avoid overpaying for coverage.

We’ll explain what a rebuilt title is, how it differs from a salvage title, and what steps you can take if you come across one while shopping for a used car. Get free insurance quotes for rebuilt title cars from top car insurance companies near you.

What is a rebuilt title?

A rebuilt title is a title on a used car that indicates the car has been restored to proper driving condition after being totaled. While it may lose value and full coverage insurability, you can still drive it on the road.

Learn More: Is it always bad if the insurance company totals a car?

When a car sustains significant damage in an accident, the insurance company may declare it a total loss, meaning you receive a payout equal to your car’s actual cash value.

The “totaled” designation doesn’t mean you can’t repair your vehicle, just that the insurance company won’t cover the cost. If you want to repair your car and make it drivable again, you can do so out of your pocket.

However, to get a rebuilt title, you’ll need to take the following steps:

1. Make all the necessary repairs to your vehicle.
2. Apply for a rebuilt title in your state.
3. Pay the local fee to convert a salvage title to a rebuilt title.
4. Go through the safety tests to ensure it has been rebuilt properly.

There are three title classifications that you might see when shopping for a used car: clean, salvage, and rebuilt titles.

A clean title vehicle is one that hasn’t sustained major damage. Ideally, you’d buy a car with this type of title since it’s less likely to come with hidden issues and typically won’t impact your car insurance rates.

What are the risks of a rebuilt title? Vehicles with rebuilt titles can sometimes be rebuilt with faulty parts or by shops that don’t adhere to manufacturer standards. In other cases, auto shops may simply miss some damage that resulted from an accident or other event.

In short, a clean title is considered much safer for drivers and insurance companies. For an insurance company, this means that you’ll likely pay more for insurance on a rebuilt vehicle title.

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Rebuilt vs. Salvage Title

In most cases, a rebuilt title car had a salvage title at some point. Basically, if a vehicle is classified as a total loss, an insurance company will deem it totaled. The car will then be registered with a salvage title. Learn more about the best auto insurance companies that accept salvage titles here.

Salvage titles are problematic because you can’t typically insure a car with a salvage title. This classification means that the vehicle doesn’t meet the standards necessary for operation on public roads. So how does a rebuilt title differ?

A salvage title means the car was declared a total loss and can’t be legally driven or insured in its current state. A rebuilt title indicates that the car was repaired, passed safety inspections, and is safe to drive.

A rebuilt title is issued once a salvage title car has been repaired to meet state standards. This typically means that the vehicle must be inspected and pass a safety test to be considered operable. Once the vehicle earns a rebuilt title classification, it can then be insured and driven on public roads.

When you’re considering a rebuilt vs. salvage title, the main difference is the repairs and testing that go into turning a salvage title into a rebuilt one.

How to Ensure a Rebuilt Title Car Is Safe

When you apply to get your title rebuilt, you’ll have to go through the application process as well as safety inspections. These methods will give the insurer a better idea of how your car will perform on the road. If your vehicle passes the required inspections and meets the financial obligation, you should have no issue getting a rebuilt title.

That being said, there are a few things you can do to ensure your car is safe:

• Get a separate mechanic to inspect your vehicle.
• Look up the safety inspection requirements beforehand.
• Ensure your vehicle meets insurance requirements.

While you can never be 100% sure a rebuilt title won’t cause you issues in the future, taking extra precautions is the next best thing. Having multiple professionals tell you that your vehicle is in decent condition should assure you that your car is in good driving condition.

Ways to Find Out if a Title Was Rebuilt

Nowadays, it’s become a bit easier to find out if a title has been rebuilt. Most private sellers will inform prospective buyers when they are selling a car with a rebuilt title, salvage title, or no title at all. What happens if the seller doesn’t let you know?

There are a couple of ways to find out if a car has a rebuilt title. If you are planning on buying a used car, it’s helpful to review the title before finalizing the sale. If there are any major changes to the title, such as becoming salvaged or rebuilt, it will be listed on the title.

Check a vehicle’s history report on sites like CARFAX, AutoCheck, or VINCheck using just the car’s VIN, typically located on the driver’s side of the front windshield, to see if it has any recorded accidents or salvage titles.

Other states make it even easier to determine if there have been any major changes to a title. In some states, titles will be of different colors depending on their classification. One common color coding scheme is as follows:

• Green: Clean title
• Orange: Salvaged title
• Blue: Rebuilt title

It’s unclear whether every state follows the exact same color scheme or not, so it could be worthwhile to investigate your state’s title codes and colors.

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What Happens if You Buy a Car With a Rebuilt Title

Buying a car with a rebuilt title isn’t the end of the world, but it isn’t ideal either. Why? As mentioned earlier, insurance companies tend to increase rates for rebuilt titles. Otherwise, your car’s value may also be less than similar models with a clean title.

If possible, it would be helpful to determine exactly what happened to your car before it was rebuilt. According to the National Association of Insurance Commissioners, one of the common causes of rebuilt titles is flooding. Water damage could create lasting issues with the mechanical and electrical components of a car.

This is a good example of why auto insurance companies might hesitate to insure. Water-based damage can be hard to find and may cause a myriad of issues down the road. This is troublesome for both the insurer and the vehicle owner.

Simplifying What a Rebuilt Title Is

A rebuilt title car has been previously totaled but has since been repaired sufficiently enough to legally drive on public roads. Rebuilt title cars can be more expensive to insure and may not be eligible for as many insurance options as a car with the title status of clean.

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