If you routinely buy your cars off the showroom floor, you may never have encountered an auto with a salvage or rebuilt title. These are permanently branded vehicles recorded in state systems and the national NMVTIS. For shoppers prioritizing price, rebuilt-title cars commonly list about 20–40% below comparable clean-title vehicles according to major guides (e.g., CARFAX and Kelley Blue Book), and affordability pressures—such as the record average vehicle age in 2025—are nudging some cost‑sensitive and DIY buyers to consider them (S&P Global Mobility). Still, branded titles carry higher risk around insurance, financing, safety documentation, and resale.
Rebuilt cars can be found occasionally on used car lots, and you may also find a car with a salvage or rebuilt title if you are buying through a private sale or online. Public access to online salvage marketplaces has expanded in recent years (Copart), but title brands are generally permanent and follow the vehicle across states via NMVTIS. If a car is salvaged or rebuilt, it should be clearly marked as one on its title document—and buyers should be alert for flood‑damaged vehicles that sometimes move across state lines (CARFAX flood guidance, NICB).
What is a salvage title or rebuilt title car?
A salvage car is one that has been declared a total loss and branded by a state—often after a severe crash, flood, or theft recovery—and it is not street‑legal until repaired and retitled. In most states you can’t insure or register a salvage vehicle for road use; after repairs and a state inspection, the vehicle can be retitled as rebuilt (naming varies) and may then qualify for insurance (Progressive, GEICO). Rebuilt vehicles are not crash‑tested again at the federal level; instead, repairers must not “make inoperative” any FMVSS‑required safety system per federal law (49 U.S.C. §30122).
The difference between a salvage car vs rebuilt is that the former can not be operated on public roads. A car with a rebuilt title started out as salvage, but was fixed enough to make it road-worthy again. States use different terms and inspections—e.g., California “Revived Salvage” requires a CHP identity check plus brake/lamp certificates and smog if applicable; New York’s salvage exam is an anti‑theft/identity check and is explicitly not a safety inspection (NY DMV); Florida conducts rebuilt inspections at FLHSMV regional offices with receipts/photos (FLHSMV); Texas involves a law‑enforcement VIN inspection, then standard state safety/emissions for registration (TxDMV). These programs focus on identity/anti‑theft and basic roadworthiness—not full crashworthiness recertification.
Getting Insurance with a salvage car vs rebuilt
Buying a salvage or rebuilt car should cost you less than a comparable car that wasn’t damaged, but you may end up paying more for insurance or have fewer options. Major carriers note that salvage‑title vehicles can’t be insured for on‑road use; after a vehicle is repaired, passes state inspection, and is retitled as rebuilt, insurers may consider coverage—often starting with liability only and varying by state and underwriting (Progressive, GEICO, Bankrate). Broader market conditions have also tightened underwriting, so expect photo/repair documentation requirements and potentially higher premiums than for a clean‑title equivalent.
Because you can’t operate a salvage car on public roads, you will not be able to get any insurance for it. But with a rebuilt car, you may be able to purchase a liability policy that would cover damage to another car or pay for medical costs of the other driver if you were in an accident. However, you will probably not find anyone willing to sell you collision or comprehensive coverage because of the past damage to the car.
Salvage and Rebuilt Title Pros and Cons
The biggest pro for buying a rebuilt title car is cost: you should pay significantly less for one. According to the Kelley Blue Book, a rebuilt car is worth roughly 20-40% less than the standard Blue Book value for an undamaged car of the same kind, and multiple sources echo that range (CARFAX, Edmunds). If you’re buying a salvage vehicle as‑is, insurers and analytics report salvage auction returns often around 30–40% of pre‑loss ACV overall, depending on damage severity (CCC Crash Course 2025). Online marketplaces broaden access to inventory and parts sourcing (Copart).
The con, of course, is that you may end up getting a car that, even if it’s been rebuilt, still has evidence of damage. It’s impossible to bring a car that’s been in a serious accident back to like-new status — which is why it costs less to buy a rebuilt car in the first place.
Frequently Asked Questions
How does a car get a salvage or rebuilt title?
A car is given a salvage title if the insurance company declares it a total loss. This usually occurs when the car is damaged to the point that fixing it would cost within 75-90% of its value. If the damaged car is repaired, it earns a rebuilt title.
How does a salvage title affect my car’s value?
The Kelley Blue Book states that a car with a salvage title is worth 20-40% less than a similar car without the damage. But it cautions that cars with a salvage title should be individually appraised to determine their market value.
Should you avoid purchasing a car with a rebuilt title?
Unless you are good at working with cars and are looking for a project to work on, or, have the money for repairs and a good mechanic to do them, you should probably avoid purchasing a car with a rebuilt title.
