A salvage title means a vehicle is severely or irreparably damaged, usually through an accident or a natural disaster, and considered as a total loss by an insurance company. In most US states, a vehicle is awarded a salvage title if it has suffered 75 – 90% damage.
When a car is significantly damaged, it is either repaired or sold at an auction with a salvage title indicating this. Salvage titling provides information on the vehicle's non-roadworthy condition, and this article will show you how to get a salvage title removed and make the vehicle roadworthy again.
Did you know?In states like Arizona, Florida, Georgia, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oklahoma, and Oregon, a vehicle can bear the salvage title if it has been reported stolen.
READ ALSO: How to Get a Title Check Report for Vehicles
What is a Salvage Title?
A salvage title is issued to a car when an insurance company totaled it following extensive damages. This creates a label that the car has been through considerable damages that could compromise its safety or value in the market.
To buyers, the salvage title means the possibility of some concealed problems and may affect insurance and resale. Ideally, you should run a thorough car history report using a VIN decoder.
This will reveal branded titles and other significant damages that the car may have had in the past, including:
- Rebuilt title
- Lemon title
- Water damage
- Auction history
- And more
By acquiring a complete report of the car's history, you can put a bar on any car that has a bad history behind it.
How Can I Get a Salvage Title Cleared?
The process of changing your car's salvage title varies depending on the state. However, here are general steps to clear a salvage title on your vehicle:
1. Assess the Damage to the Vehicle
The first step is to evaluate the level of damage that the vehicle has incurred to know if a repair is feasible or not. Contact a motor vehicle expert who can closely examine the vehicle with a view of coming up with a quotation. This will help determine the degree of damage possible for a car to be repaired to its working condition, guaranteeing safety.
2. Repair the Vehicle
Continue with the necessary repairs in order to restore the roadworthy condition of the car. All repairs should be done by a certified mechanic to state standards on safety and emissions, which may differ from state to state. Much attention should be paid to the quality of all the parts used in the car repair and servicing offered so as to ensure the car is safe and conforms to the laws in the state.
3. Gather Documentation
Gather any receipts for parts and services provided during the repair process and all inspection documentation. Document all the repairs that have been done, as this will be helpful during the inspection and acquisition of the rebuilt title. This also helps the inspection authorities or potential buyers assess the quality of the repairs completed.
Inspection Process for Clearing a Salvage Title
To re-register a salvage vehicle in the US, it must be inspected by an authorized technician before a rebuilt title can be issued. Follow these steps:
Preparing the Requirements
A number of states have different rules regarding the inspection of rebuilt vehicles. Check your state's laws on rebuilt vehicles and be in compliance with the rules and regulations. This may involve certain standard safety checks, testing of emission levels, among others, certification of works completed.
Scheduling an Inspection
Now, it's time to call on the appointed agency assigned to examine the rebuilt vehicles. Before scheduling an inspection, make sure the vehicle is in good condition and has all the required documentation.
Passing the Inspection
When inspecting the vehicle, the inspectors will take into consideration the safety and performance of the car. They will also measure the effectiveness of the repairs made, conformity to provisions of safety, and any potentiall harm..
Applying for a Rebuilt Title at the DMV Office
If you buy a salvage-titled car, applying for a rebuilt title is necessary after the necessary repairs are completed. Follow these steps:
Submit Application
Upon passing the inspection, complete an application for a rebuilt title with your state's DMV or Department of Motor Vehicles. Be aware that the process of applying may differ depending on the state; follow the guidelines provided in your state.
Required Documentation
Gather all documents that may be requested, such as proof of repair, receipts for the purchase of spare parts, car inspection reports, and any form that may be required by the state DMV.
This documentation will serve as evidence that you submitted for your application, alongside ensuring you that the said car has been repaired to satisfactory standards.
Fees and Processing Time
Find out about the costs of the application fees for a rebuilt title and also the time that it's expected to take depending on your state. In certain states, there may be extra charges for inspections or paperwork depending on the service the buyer is using. It may take a while longer before you receive your rebuilt title, so it's wise to plan for this.
Insurance and Registration for Rebuilt Vehicles
Rebuilt vehicles are vehicles that have been previously registered or titled and are incapable of being used on highways due to damage. Insuring such a car enables you to drive the car again legally.
Obtaining Insurance
Finding insurance for a car with a rebuilt title is way more challenging when compared to a car with a clean title. Most insurance providers can possibly provide insurance, but the premium may be higher and the type of insurance is not common.
Look for those insurance companies dealing in rebuilt or salvage cars and be ready for the company to probe you with many questions about the repairs and the state of the car.
Registering the Vehicle
To register a rebuilt vehicle, go to the DMV office of your state of residence and fill in the necessary papers, such as the rebuilt title, proof of insurance, and others, in accordance with the state requirements. During the registration, the required documents will be verified, and the car in question is fit to be registered under the state laws. Make sure all the fees have been paid and you have done all that the state requires of you.
Pros and Cons of Clearing a Salvage Title
While some salvage-titled cars are in good condition, generally, insuring them might be, but it doesn't always mean a salvage title car is totaled and not roadworthy. Let's take a look at some of the pros and cons of clearing a salvage title:
Advantages of Removing a Salvage Title
- Clearing salvage titles makes the rebuilt vehicles cheaper than similar vehicles with a clean title. If you are on a budget and looking for a used car to buy, a car with a rebuilt title and in good condition can be your best deal.
- Accident cars that have been repaired provide reliable performance and are more cost-effective than getting a new or used car, which has no salvage title.
- Additionally, completing the salvage title process can give you a clear title and improve the vehicle's resale value.
Disadvantages of Removing a Salvage Title
- With rebuilt title vehicles, there are definitely some drawbacks – the car potentially has some hidden damages that are not easy to notice at first sight.
- Rebuilt cars could have poor resale values and could be costly to insure or difficult to get a loan for.
- If you are interested in purchasing or obtaining insurance for a rebuilt car, there may be some doubts regarding vehicles, and this could make it difficult to sell or insure the car.
Conclusion
Salvage title vehicles come with many challenges, such as damage evaluation, repair process, and legal procedures depending on the state laws. You can restore your car to its normal state by ensuring the repair work is done to meet set standards, keeping a record of the car, and meeting necessary inspection and registration standards. This process does not only make the vehicle operational for road use, but also makes it valuable and insurable.
