What is a rebuilt title: All about the rebuilt title

What is a rebuilt title: All about the rebuilt title

If you’ve been looking at used cars with the goal of buying one, you may have seen the phrase “rebuilt title” or “rebuilt title” in the description more than once. But what exactly does this mean? And even more so, how does this affect the vehicle? Well, in this article we are going to explain in detail what a rebuilt title is and everything you have to take into account if you are interested in buying one.

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What is a rebuilt title or reconstructed title?

If a car has had a normal life, meaning it has never been in a serious accident, has never had its odometer reset, and has not had to be serviced by the manufacturer for factory defects, it is said to have a clean title or clear title .

That title is free of any markings that denote special status and warn potential buyers of a possible problem with the vehicle.

Read on: What is a car salvage title?

If a car has been in an accident and is declared totaled (a total loss due to accident damage) by an insurance company, its clean title is replaced with a “salvage” title.

This title lets potential buyers know that there has been an accident and the car may not be safe to drive.

Now, salvage title cars are given a rebuilt title when they are repaired. In most cases, a rebuilt title is only issued after the car has been repaired and inspected by the state or jurisdiction that issues the title.

Keep reading: How much does it cost to register a car in NY?

Guidelines for Rebuilt Vehicles Vary 


In many states, after a salvage vehicle title is repaired, it will be inspected and, if all goes well, a “rebuilt title” will be issued. A vehicle with this title can be driven again. Guidelines for obtaining a rebuilt title vary by state.

For example, the state of Florida requires a vehicle to have a salvage title if the insurance company declared the vehicle a total loss. These titles generally state whether the vehicle is “rebuildable” (can be repaired and driven) or “non-rebuildable” (must be sold for parts) .

In some other states, the car title is “marked” when the damage estimate reaches a certain percentage of the car’s retail value. For example, New York and Louisiana designate it at 75 percent.

Keep reading: How to clean a salvage title

The rules can be complex for rebuilt and salvage vehicles. For example, the Georgia Department of Revenue states that anyone who purchases a salvage vehicle for the purpose of restoring or rebuilding it must be licensed as a rebuilder. In Nevada, vehicles that have had certain repairs must be titled as rebuilt, even if they do not meet the definition of a salvage vehicle.

Keep reading: The best car loans if you have bad credit

insurance considerations

Before you buy a rebuilt vehicle, you should check to see if the car can be insured with your current insurer, as their terms may not allow you to write auto policies with repossessed or rebuilt titles.

In this regard, many auto insurance companies simply do not offer rebuilt auto policies.

Or, if they offer a policy, it may be just liability and not all types of car insurance, like collision and comprehensive coverages, because it’s too hard to determine the true value of a rebuilt car.

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