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Salvage Car Insurance in Oregon – How to Insure Salvage Title Vehicle?

By Mike Richards Updated: 05/22/2019 Posted: 10/15/2015

Every state in the union requires certain policies and procedures to be followed in order to license and receive proper permission to drive any given vehicle on the open road. This is particularly true when it comes to cars and trucks that have been determined to be in salvage condition, as the perceived risk to the driving public is such that additional measures must be taken before insurance and registration can be granted.

Residents of Oregon must understand this procedure before being able to get salvage insurance, and some of the steps required are outlined below.

What To Do When Your Vehicle Has Been Totaled in Oregon

Oregon requires you to surrender the title to your car or truck if the vehicle has been declared to be a total loss by the insurance company. You have 30 days from the date that the loss was declared, and the statute asks that you hand the title over to the Oregon Department of Motor Vehicles.

If you are not insured, then Oregon asks that you hand the title directly to the Department of Motor Vehicles within 30 days of the date that the car or truck was actually considered to be totaled. It is at this point that a salvage title can be applied for.

If you have had the car repaired or rebuilt then the state of Oregon does allow the owner to apply for a title that will display the word “totaled” on the title, and then complement that with either “Assembled,” “Reconstructed,” or “Replica.” If you have rebuilt the vehicle, then you will want to make sure that you have followed the procedures for reconstructed vehicles that have been outlined by the state.

Procedures for Reconstructing a Vehicle in Oregon

If you have taken a vehicle and had it suitably rebuilt in Oregon, then you will want to get a reconstructed title. This is very important for insurance purposes. There are four main requirements that need to be met in order for the Oregon Department of Motor Vehicles to issue such a title. They are outlined as follows:

  •  The vehicle does need to have a body that resembles the original car. It must take on the same design as the original make, model, and year of the car that was damaged to be declared totaled.
  • An individual or independent mechanic must have rebuilt the vehicle. The manufacturer of the actual car or truck cannot have rebuilt it.
  • The vehicle should not have been built in a factory where the model year and the make of car are actually already assigned to that factory.
  • The rebuilt car cannot be a replica of the original.

It is also possible to get the same type of title issued to a vehicle in Oregon that is a truck that has been rebuilt using a component kit. That is provided that the kit is assigned a vehicle identification number and a Manufacturers Certificate of Origin is also provided for the kit.

The vehicle will need to pass an emissions test, get a VIN inspection, and provide proof of insurance. You also have to pay the title, registration, and plate fees for the vehicle. The fees vary based on the type of vehicle you have, and they are subject to change.

The DMV will then issue you a reconstructed title, and you can get the vehicle registered. As long as you have everything in order, you will be able to get the plates and stickers while you are at the DMV.

Getting Insurance Coverage

If a salvage vehicle is rebuilt, properly inspected, and falls under the guidelines just mentioned, it is possible to get salvage-title car insurance in the state. However, most companies will only be willing to offer liability coverage for the vehicle. This type of coverage will take care of damages to other people resulting from an accident in which you are the cause.

It will be more difficult to get greater coverage for your vehicle. Many insurance companies are reluctant to offer comprehensive or collision coverage for reconstructed vehicles because they don’t have a good method of evaluating the actual value of the vehicle.

That’s not to say that all insurance companies (insurer) will decline you, though. Some companies may be willing to provide you with coverage, and it is a good idea to speak with your current insurance company, as well as others, to see what they might be able to offer.

Read more on the official Procedures in This State, or on Rebuilt Title Laws for Other US States. Explore our Vehicle Auctions and find info on Buying With Us.

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