Should You Buy a Salvage Title Car? FAQ

In Idaho, a vehicle with a salvage title can only be insured if it has been inspected by a state-certified mechanic who decides whether the car is safe to drive. If it is okay to drive, the DMV will issue a rebuilt title, which means you can then insure the vehicle in Idaho. 

Believe it or not, a vehicle doesn’t have to be in an accident or have its airbags deployed to be considered a total loss therefore becoming a salvage title car. 

Hail damage can wreak enough havoc on a car’s body panels and windows that an insurance company can deem too expensive to repair. The vehicle could have been flooded in a storm or had some of the costly computer components to repair or purchase to get water damage. Every vehicle has ways for water to escape during a rainstorm, after driving through a puddle, etc. But, over time, these channels can get blocked with leaves and other debris, causing water to try to find other ways out of the car. This can lead the water to electronic components that control the vehicle. While it’s rare that this happens, it can, in fact, happen and ultimately stop a car from operating properly. Also, a car that’s been recovered from a theft or that has been vandalized can also get a salvage title. 

There are two ways to discover this. One is by looking at the vehicle’s CarFax, which will disclose pertinent information about the car you want to buy. You can see when and where it’s been maintained and registered, and of course, information about the car having been in a bad enough accident or situation that the insurance company declared the car a total loss. Just typing the vehicle’s VIN into Google will bring up any pictures if it has been damaged and sold at a car auction. This can give a decent understanding of any visible damage it had before it was rebuilt. 

All vehicle titles in Idaho are green, but a car with a salvage or rebuilt title will have either “Rebuilt” or “Salvage” written in red on the physical title. 

While a vehicle with a salvage title can’t be financed when purchased, a car that’s been repaired and given a rebuilt title can be. However, it will take some patience and paperwork for the lender to know everything is legitimate and legal. 

Once a vehicle has been inspected by a state-approved mechanic/inspector and gets its updated rebuilt title paperwork, most insurance companies may only offer liability coverage versus full comprehensive and collision coverage while also adding an extra charge to insure the vehicle. Before buying any vehicle, you should always call your car insurance provider and their competitors to check on pricing and what documentation you will need to prove the car is roadworthy. 

Sometimes, a car with a rebuilt title can be a great bargain because many people are worried that something could still be wrong with it or that it will forever have issues. That being said, you should do your due diligence to have the vehicle inspected to ensure all the damage has been repaired correctly. Make sure to type the VIN into Google to see any potential photos of the car before it was rebuilt. Try to find the company who rebuilt it to see if they can provide detailed photos and/or documentation about its reconstruction. 

So does this mean you should not buy a salvage title car with a rebuilt title? Well, no, not necessarily. A car that has been in an accident and repaired and thus given a rebuilt title can still be a very good car that could be as reliable as a car with a clean title. However, it is pertinent that buyers make sure all of the paperwork is correct and check the repairs done to make sure they are comfortable purchasing a salvage title car with a rebuilt title.