What is Salvage title? US States Rebuilt Title Rules Car Insurance

How Can I Insure a Salvage Car in New Mexico?

By Mike Richards Updated: 07/26/2022 Posted: 10/17/2015

If you live in the state of New Mexico and you are interested in purchasing a salvage car, then there are a number of different things you will need to know about what it takes to make one of these vehicles legally drivable and in order to have access to insurance coverage.

Buying a Salvage Car

If you are looking for cheap used cars, then buying a salvage car through an online car auction may be your best option. You will be surprised at the number of vehicles you have access to in this manner.

While you will still be bidding against other people, unlike an in-person auction, you can sit and think instead of being in a high-pressure environment where you have to make snap decisions you may regret later.

When you work with a quality auction house, then they may even set up the delivery of your salvage car for you.

Getting a Title

In New Mexico, you will have to provide documentation before you can legally drive a salvage car. The car will have a salvage title on it when you buy, and you need to repair it and then apply for a reconstructed/rebuilt title in order to legally drive the vehicle.

New Mexico has two salvage title statuses: salvage and nonrepairable. If a vehicle has been listed as nonrepairable, then it can only be sold for parts and scrap metal. These cars cannot be given a title and they cannot be driven. If the car is listed as salvage, then making the right repairs and getting the vehicle inspected can make it roadworthy once again.

You will need to provide the New Mexico Vehicle Division with proof that you own the vehicle, as well as proof that you did repairs on it. That proof can come in the form of receipts for parts and labor. Finally, you will need to make an appointment with your local DMV so that they can inspect your vehicle to make sure it is roadworthy and to ensure that no stolen parts are in it.

You may also need to get a vehicle emissions test, which can be done at certified Air Care stations.

Once you have done repairs on the vehicle and it has passed inspection, you will not get a clean title, but you will get one that is branded salvaged reconstructed/repaired. Once you have this and you have also obtained your registration on the car, it is time to start looking for insurance.

Obtaining Insurance

The first thing you should remember is that you may get turned down by some insurance companies. Many do not care to insure reconstructed salvage vehicles. You also need to remember that your insurance premium could be higher than you expected. That’s because many companies consider reconstructed vehicles too much of a risk.

You will need to decide how much insurance coverage you really want on your rebuilt car. If you want just liability to make it legally drivable, then you will likely find more insurance companies that will be willing to provide this type of policy.

However, if you want comprehensive coverage, then you may have to shop around a great deal more. This may be harder to find, but still possible.

Read a more comprehensive guide to Procedures in This State, or on Rebuilt Title Laws for Other US States.  Explore our Vehicle Auctions, as well as finding more information about How These Auctions Work.