Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Jan 24, 2022

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The Lowdown

  • A salvage title is only one of several titles that can be assigned to your vehicle
  • If the cost of car repairs exceeds the value of a vehicle by at least 70%, it is no longer salvageable
  • In order to insure a vehicle with a salvage title, it must first earn a rebuilt title to be eligible

There are at least 10 or more types of titles for your vehicle. A car with a salvage title may not be eligible for financing, but if it passes inspection, it can be legal to drive. In this article, we’ll be discussing salvage titles and where you can go to receive one. Salvage titles can only be granted to vehicles that have been damaged beyond repair. That means the vehicle is no longer safe to drive. Keep reading if you are interested in learning about the best insurance for salvage titles.

During your search for the best car insurance companies for a salvage title, it may be wise to start comparing rates. Enter your ZIP code to receive a free car insurance quote today. 

What are the best auto insurance companies for a salvage title?

Car insurance companies are a dime a dozen. According to the Insurance Information Institute, there are over 5,929 insurance companies in the United States. However, many of the best insurance companies for salvage titles are well-recognized companies you may already know and love. Knowing which ones may offer the best car insurance for a salvage title in advance can save you a great deal of time and money. 

GEICO is one of the best auto insurance companies for a salvage title

GEICO is one of the fastest-growing major auto insurers in the U.S. and it has been serving its customers since 1936. The company has insured more than 30 million vehicles and it has more than 18 million active auto policies and counting. Its award-winning services helped the company earn an A++ rating from Standard and Poor’s, an Aa1 from Moody’s and an A++ from A.M. Best.

Progressive is one of the best auto insurance companies for a salvage title

Since 1937, Progressive has been committed to providing exceptional car insurance to its members. The company is the third largest insurance carrier in the United States. With over 20.4 million policies in force, Progressive is the number one auto insurer in the country. It received an A+ (Superior) rating from A.M Best, an AA rating from Standard and Poor, and an Aa rating from Moody’s.

21st Century is one of the best auto insurance companies for a salvage title

Since 1954, 21st Century insurance has been providing its customers with exceptional auto coverage. The company has a customer service line that is available 24 hours a day, 7 days a week. In addition, it offers complimentary roadside assistance to its members. A.M. Best rated the financial strength of 21st Century insurance with an A+.

If you live in California, 21st Century would be a great option to explore. Unfortunately, the company is currently only offering car insurance to California residents, so if you do not live in the state, this insurance would not be an option for your salvage title.

Esurance is one of the best auto insurance companies for a salvage title

Esurance was founded in 1999 and for over 22 years, it has been providing its customers with home, renters, motorcycle, and auto insurance. The company is owned by Allstate and it offers car insurance in 43 states. With Esurance, it should only take about six seconds to receive a quote online. Its claims department also has a reputation for responding promptly to claims, as 60% of its photo claims are accepted in a day.

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What is a salvage title?

A salvage title is typically blue in color and it refers specifically to a vehicle title given to cars that have been severely damaged to a degree that they were once no longer drivable. Salvageability is denied once the cost of repairs for the car exceed the worth of the vehicle by at least 70%. At this point, the car can only be sold to someone who wants to repair it, or it can be sold off for scrap. Some of the best insurance companies for a salvage title may also be the best insurance companies for a rebuilt title.

What is a rebuilt title?

A rebuilt title is typically orange in color and refers to a vehicle title provided to a car that has been repaired back to a drivable state. These titles are given to vehicles that were extremely damaged and have been previously salvaged. One of the most important things to remember about rebuilt titles is that, depending on the state you are located in, an inspection may be required before your newly rebuilt vehicle can get back on the road.

One of the greatest advantages to purchasing a vehicle with a rebuilt title is that the investment will be inexpensive. As a result, you can enjoy a short-term vehicle until you can invest in something a little more permanent. However, there are also some disadvantages that you should consider before making the decision to purchase a vehicle with a rebuilt title.

Decreased Value

If you are purchasing a car with a rebuilt title, you can expect for your vehicle to have a lower market level price. According to J.D. Power, a car with a rebuilt title will typically be worth around 20-40% less than the equivalent car with a clean title.

Difficulty Getting Insured

Purchasing a car with a rebuilt title can be easy, but getting it insured may be a challenge. Even though your vehicle can be driven, there may be underlying issues that have yet to be detected. Fear of ample claims is one of the main reasons insurance companies are hesitant to provide insurance to cars with rebuilt titles. However, in the event that they do, you can expect to pay significantly higher insurance rates.

What is a dismantled title?

A dismantled title is very similar to a salvage title. These kind of titles are provided to cars that are damaged beyond repair. When a vehicle is in this type of condition, it wouldn’t be logical to pour a significant amount of repairs into it to revive it.

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What is a junk title?

There are salvage titles, rebuilt titles, and then there are junk titles. Junk titles are vehicle titles that have either been sold to the junkyard, or to an individual that would like to sell the car parts. Depending on where you are located, a junk title and a salvage title may share the same meaning.

What is a bonded title?

A bonded title refers to a vehicle title for cars that do not come equipped with ownership documents. These titles are an alternative for ownership documents that allow an individual to officially claim ownership of the vehicle with the state. Bonded titles are usually good for about three to five years.

What is a water damage title?

A water damage title is a document that is issued to automobiles that have a significant amount of water damage. This could be due to a severe rainstorm, hurricane, thunderstorm, flood, or other natural disaster. While some dealers can repair a water damaged vehicle to look like new, its appearance cannot guarantee good quality. If you were to consider a vehicle with a water damage title, it would be extremely important for you to do your due diligence and have it inspected in advance.

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What is a reconstructed title?

A reconstructed title is for vehicles that have gone through a series of large repairs. These are typically provided by insurance companies or from the repair shop that performed the labor. If a reconstructed vehicle were to pass inspection, it can be registered like a normal car.

What is an affidavit title?

An affidavit title is a document that is provided during instances when car documents are not available. These forms are an alternate way for an individual to establish ownership of a vehicle. The information on them pertains to the status of the vehicle and any legal issues it may have been involved in, beforehand.

What is an odometer rollback title?

An odometer rollback title is provided to a vehicle that has had its odometer turned back to appear as if it has lower mileage. This is an illegal practice and most mechanics can identify vehicles that have experienced this.

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What is a clean title?

A clean title is the complete opposite of a salvage title. These documents are usually green in color and they are provided for vehicles that have no major financial repairs or outstanding payments on record. Clear titles are the easiest titles to obtain and they are more likely to increase your vehicle’s eligibility for getting approved for a car loan. They are also a great way to establish that the seller has full ownership of a property that is free of debt.

Is a salvage title bad?

There are several different types of car titles and they all depend on the condition of your vehicle. Since a salvage title is completely legal, it is not a bad option. In fact, some drivers choose salvaged vehicles because they are low cost and highly affordable.

On the other hand, if you decide to go with a vehicle that has a salvage title, there are also many concerns that may go along with it–one of the biggest concerns being your safety. The level of safety a driver has when operating a vehicle with a salvage title can be unpredictable. This is why many of the best insurance companies for a salvage title usually require more than one inspection of the vehicle.

In addition to the difficulty you may experience when attempting to get your vehicle insured, another concern that many drivers have about vehicles with salvage titles is that they are not easy to sell. If you are unable to successfully insure your vehicle and you would like to trade it in, most dealerships would be hesitant to accept this type of vehicle.

How to Get Car Insurance With a Car That Has a Salvage Title

The moment your vehicle has undergone an inspection, you will have a better idea about whether you will be able to get car insurance on your vehicle that currently has a salvage title. If it passes inspection, only after can you legally insure a salvage title car. However, it must first graduate from a salvage title to a rebuilt title for for this to take place.

Once your salvage title vehicle receives a rebuilt title, it will require you to obtain a certified mechanic’s statement. This statement confirms that any issues detected during the initial inspection are outlined. A certified mechanic’s statement is like getting a second opinion on the state of your vehicle.

After these issues have checked out, you can begin to search for the right car insurance.

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Choosing the Best Auto Insurance Company for a Salvage Title

It’s ultimately your decision to determine what the best car insurance company for a salvage title is. You may already have another type of insurance from one of these companies, which could make selecting it as your salvage title vehicle’s insurance provider a no-brainer. Or, after doing your research, another company’s stellar ratings may be persuasive enough for you to want to give that company a try.

 The best car insurance company for a salvage title may not always be the most affordable. If you’re shopping around for rates, enter your ZIP code to receive a free car insurance quote today.