Tips for How To Get a Salvage Title Cleared

Getting a vehicle with a salvage title might save you some money, but you won’t be able to drive it around much until you get the title cleared. In this article, we’ll be taking a quick look at what a salvage title is, what it means, and how to clear it so you can start driving your vehicle as soon as possible.

What Exactly Is a Salvage Title?

A vehicle receives a salvage title after an insurance company deems it totaled. Legally, the vehicle has to be registered under a salvage title when this happens during an insurance claim. The law also requires a vehicle’s owner to register it under a salvage title if the vehicle is unfit to be on the road. Salvage title vehicles aren’t street legal, and you can’t drive them on the road unless they’ve been repaired and are issued a rebuilt title. Salvage title laws vary per state, but typically, a vehicle must be registered under a salvage title when its repair costs equal or exceed 50% of its value.

Can You Get a Salvage Title Removed?

A vehicle with a salvage title will never regain its clean title. If you were to repair a salvage title vehicle, it would instead receive a rebuilt title, also referred to as a reconditioned or assembled title in certain states. The only way to get a salvage title removed is to repair the vehicle, submit it to the DMV for inspection, and process a replacement rebuilt title. Any vehicle with a rebuilt title is one that previously carried a salvage title.

Concealing a vehicle’s title and repair history through title washing or title laundering is a serious crime.

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How To Clear a Salvage Title

Clearing a salvage title consists of four main steps:

Step One: Purchasing the Vehicle

Before you clear a vehicle of its salvage title, you need to own it. This can be harder than it sounds, because some states don’t allow salvage vehicles to be sold to individuals. Sometimes only licensed rebuilders can purchase a salvage title vehicle at all. If this is the case in your state, you’ll need to settle for buying a rebuilt title vehicle instead. At the very least, rebuilt title vehicles still have lower price tags than clean title vehicles. Their value tends to sit 20-40% lower than clean title vehicles.

Step Two: Conducting Repairs

After acquiring a salvage title vehicle, it’s time to have it repaired. If you’re a pro DIYer, document your process with lots of pictures. Likewise, if you bring the vehicle to a shop for a professional repair, ask them to send you progress photos. These images can be submitted as evidence later on for the vehicle’s rebuilt title. Keep track of all your vehicle’s paperwork during this time.

Step Three: Passing the Salvage Inspection

The next step is to submit your vehicle for a DMV salvage inspection. There are forms you’ll need to fill and submit to your local DMV so an inspector will examine your repaired salvage title vehicle. The DMV will ask you for the bill of sale, the salvage title itself, photos, and other applicable documentation. The bill of sale is to prove you legally own the vehicle, but the DMV might not require it if you’re the vehicle’s first owner. Some states might also require you to have a certified mechanic verify the vehicle’s roadworthy state before coming in for an inspection.

During the inspection, The DMV verifies that the vehicle has been adequately repaired, and no parts have been illegally altered or stolen. The inspector will cross-reference the paperwork you bring as they carefully and thoroughly examine the vehicle’s components.

Remember that your salvage title vehicle isn’t street legal. Certain states might allow you to apply for temporary plates to drive your salvage title vehicle to the inspection. Other states don’t allow you to drive a salvage title vehicle at all until it passes the inspections and has its new rebuilt title. Be sure to check the laws in your area, and hire a tow truck if needed.

Step Four: Finalizing Paperwork

After your vehicle passes the salvage inspection, it’s time to apply for a rebuilt title. This necessitates filling in even more forms and paying a few fees. The exact process can vary depending on your state, so make sure to research the exact process. Once that’s all over, you’ll receive a new title stating that your vehicle has been rebuilt. You’ll then be allowed to drive it on public roads as you would a clean title vehicle.

Frequently Asked Salvage Title Questions

Here are some common questions regarding salvage titles:

Should You Buy a Salvage Title Vehicle?

There are a number of reasons you might consider buying a salvage title vehicle. They’re cheaper, can be fun to repair, and are a pretty decent source of spare parts for other projects. That being said, make sure you know what you’re getting into. Remember that salvage title vehicles have that title for a reason. Insurance companies deem these vehicles a total loss. Sometimes, a salvage title vehicle’s low price tag simply isn’t worth the hassles of repairs and paperwork.

Does a Salvage Title Affect Insurance Costs?

Because salvage title vehicles are not street legal, insurance companies will refuse to insure them. Once the vehicle’s been repaired and given a rebuilt title, its history can still affect how much it costs to insure the vehicle.

To start, not all insurance companies offer coverage for rebuilt title vehicles, and those that do often limit the coverage options. Rebuilt vehicles might still have old issues or damage from their initial totaling accident. Insurance companies can say that it’s more likely for rebuilt title vehicles to end up in another accident from old issues, leading to higher insurance rates.

Now that you know how to fix a salvage title vehicle, you can decide for yourself if all the steps for getting it back on the road are worth the low price tag.