Will State Farm Insure a Rebuilt Title?

Last Updated on October 25, 2023

State Farm insures millions of cars across the United States – including thousands of vehicles with rebuilt titles.

If your car has a rebuilt title and you need insurance, then State Farm is one option. Like other large insurers, State Farm can provide liability-only coverage (or, in some situations, full coverage car insurance) to vehicles with a rebuilt title.

Keep reading to find out everything you need to know about how State Farm covers vehicles with a rebuilt title.

Key Takeaways:

  • State Farm is one of the few insurers that offers full coverage car insurance to vehicles with a rebuilt title, as long as they pass an additional inspection.
  • State Farm charges slightly higher rates for rebuilt title vehicles than standard title vehicles due to the difficulty of assessing risk and value.
  • State Farm does not insure salvage title vehicles, which are damaged beyond repair and cannot be legally driven on public roads.
  • State Farm provides competitive rates and various coverage options for rebuilt title vehicles, making it a good choice for drivers who want to insure their repaired cars.

Yes, State Farm Insures Vehicles with a Rebuilt Title

No reputable insurance company will insure a vehicle with a salvage title. However, if your salvage title vehicle has been repaired and passed inspection, then it receives a rebuilt title and is eligible for insurance with most major providers – including State Farm.

State Farm provides liability-only coverage to most vehicles with rebuilt titles, allowing you to drive legally on public roads in your state.

In some cases, State Farm can also provide full coverage to vehicles with a rebuilt title. If your car passes an additional inspection, then you may be able to buy full coverage through State Farm.

How Much Does Rebuilt Title Car Insurance Cost with State Farm?

State Farm is one of the top three largest insurers in the United States, and the company tends to offer competitive rates on all vehicles. Generally, State Farm is one of the cheapest options for rebuilt title car insurance.

Typically, State Farm charges around $1,598 per year for full coverage car insurance on a rebuilt title vehicle.

Or, if you’re buying liability-only coverage, you could pay as little as $723 per year. Liability-only coverage protects other drivers from damages and injuries you cause but has little protection for your own vehicle.

In comparison, State Farm normally charges around $1,450 per year for full coverage car insurance on a vehicle with a standard title. Typically, you’ll pay more to insure a vehicle with a rebuilt title.

Why Rebuilt Titles Cost More to Insure

Whether you’re insuring a rebuilt title vehicle with State Farm or any other provider, you can expect to pay more for car insurance.

Why do insurers charge more to insure a vehicle with a rebuilt title? There are two main reasons, including difficulty assessing risk and difficulty assessing value:

Difficulty Assessing Risk: Insurers use enormous amounts of data to calculate risk based on age, driving history, vehicle make, and vehicle model. Some cars are riskier to insure than others. Others have a high risk of an accident – or a higher risk of serious injuries from an accident. With rebuilt title vehicles, it’s harder to assess risk. Even if it’s the same make and model of a well-known vehicle, your rebuilt title vehicle has undergone major repairs. There could also be hidden damages to other components of a vehicle. These vehicles tend to have a higher risk of being involved in an accident in the future, which is why insurers charge higher rates.

Difficulty Assessing Value: When you buy a base model vehicle from the dealership, your insurer can easily calculate the value of that vehicle. There are thousands of other vehicles just like it on the road. When you have a rebuilt title vehicle, it’s harder to accurately determine the value of the vehicle. After an accident, your insurer must cover the full value of repairing or replacing the vehicle. If the insurer is uncertain of the value or finds it difficult to calculate the value, they’ll err on the side of caution by charging higher rates.

Because of both of these factors, you can expect to pay slightly higher rates when insuring a rebuilt title vehicle with State Farm or any other major insurer.

State Farm Does Not Insure Salvage Title Vehicles

There’s a big difference between vehicles with salvage titles and vehicles with rebuilt titles. State Farm will insure rebuilt title vehicles – but not salvage title vehicles.

Here’s the difference:

  • Salvage title vehicles are damaged from a major accident, fire, flood, or other incident. No reputable insurer will insure a salvage title vehicle, which is why they’re not eligible to be legally driven on public roads.
  • Rebuilt title vehicles have been repaired to a point where they’re eligible to be insured and can legally be driven on public roads. They’ve passed inspection and can safely be driven. State Farm will provide insurance to rebuilt title vehicles.

State Farm Car Insurance Options for Rebuilt Title Vehicles

If you have a rebuilt title vehicle, then you could buy liability-only insurance or full coverage car insurance for that vehicle, depending on your needs and desired amount of coverage.

  • Liability-only coverage includes bodily injury liability coverage, property damage liability coverage, and any other coverages required by your state. These coverages protect other people from damages or injuries you cause, but there’s no coverage for your own vehicle.
  • Full coverage, meanwhile, includes liability coverage along with collision coverage and comprehensive coverage. These coverages do protect your own vehicle, covering damages linked to accidents and non-accident-related events.

Typically, insurers do not provide full coverage car insurance to vehicles with a rebuilt title. However, if your car has passed an additional inspection (beyond the initial inspection), then State Farm could provide you with full coverage car insurance.

Final Word

State Farm will typically insure a vehicle with a rebuilt title.

As long as the vehicle has passed an inspection and no longer has a salvage title, State Farm should insure that vehicle. You can generally buy liability-only coverage through State Farm, although you may also be able to buy full coverage car insurance if your vehicle has passed an additional inspection.

Find out how affordable rebuilt title insurance can be with State Farm by requesting a quote today.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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