Last Updated on February 3, 2021 by Joe Regan
Howdy, Driver? You must turn a rebuilt title to a clean title to drive the car on road. Thus, I disclose how to get a salvaged title cleared so you can drive your car legally or sell for a significant price.
If a car suffers about 70 percent damage, the car is given a salvage title. Of course, a car with a salvage title is good only for selling its parts or selling to scrap. Similarly, when an insurance company reports a vehicle as a total loss, it assumes the salvage title.
In some states, a salvage title is issued to a stolen car, meaning that the car cannot be driven on the road legally.
To remove salvage title from a car, you must repair the car, tow it for inspection, and if it passes the inspection, it is given a new title.
How to Get a Salvaged Title Cleared
In this section, I disclose how to clear a salvage title.
Below are steps to get a salvaged title cleared:
Possess the Car
If the insurance company declares the car a total loss, you will accept only the ACV (actual cost value) of the car from them. Of course, you will reject the salvage value offer to keep the totaled car.
If the car is not yours, you have to buy from a junkyard or a new owner and transfer ownership.
In some states, however, you must be a licensed rebuilder to buy a car with a salvage title.
Repair the Car
When you acquire the car, invite or tow it to the mechanic for repairs. Note that you cannot drive the vehicle since it has a salvage title.
Tow for Inspection
Find out the needed paperwork by the motor department in your state and submit them for the inspection of the car. You may visit the website of the motor department of your state for the requirement.
Note: You must have the vehicle towed because you cannot drive it legally on the road.
When the car passes the inspection, you will be issued a decal indicating that the car has passed the inspection test. Of course, you will pay a specified fee to complete the new titling process.
File for Rebranded Title
When you file for a rebranded title, you are issued a statement that indicates that the car is rebuilt.
You need to submit the proof of passed vehicle inspection and other required paperwork to the title department of your state. Of course, you will pay a specified fee to complete the application to change salvage title to clean.
Finally, you are issued a rebuilt salvage title, which makes the car legal to be driven on the road or sold as clean.
Run Final Inspection
Despite passing the inspection test, it is advisable to inspect the car for the last time for your safety and the safety of other road users.
Find a mechanic and have the vehicle worked on before you drive.
Insure the Car
Typically, an insurance company will not insure a car with a salvage title, especially if they declared the car a total loss. However, your car will be insured since it assumed a rebuilt title.
Before an insurance company accepts to insure the car, they may inspect the car. The car must also be rebuilt, subject to underwriting, and file development.
Removing the Rebranded Title
After getting a rebuilt title, it indicates that the vehicle was rebuilt. Of course, the buyer is scared that it may have been built improperly. Thus, the value of the car diminishes, and you receive lower price for it.
Well, by title washing, you can get rid of the branded title permanently. It os illegal, though.
Are salvaged titles bad?
Yes, a salvage title is bad and it indicates that a car is valued by selling the parts only. A car with a salvage title is not safe to be driven because such a car sustained major damage. If a car has a salvage title, do not buy unless you will rebuild the car.
Can you get full coverage on rebuilt title?
Only a few insurance companies offer full coverage for rebuilt salvage cars, and it must be subject to underwriting and file development. Nonetheless, you can obtain liability insurance on a rebuilt title.
How long does a salvage inspection take?
It takes about 4 hours for salvage inspection to complete.
A salvage title limits how you use a car. For example, with a salvage title, you cannot get a totaled car on the road.
When you receive a new title for the car, the salvage title identity is not erased from the history of the vehicle. However, you may wash the car title to erase its salvage identity, but it is illegal.
If your car received a salvage title in another state, you may have to inspect and obtain a rebuilt title in that state before registrations in your home state.