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

What Is a Rebuilt Car Title and How to Buy & Insure a Salvage Car in Vermont?

By Mike Richards Updated: 05/23/2019 Posted: 10/17/2015

If you have decided to purchase in Vermont salvage car, than keep in mind each state has varying rules about these vehicles and what it takes to make them legally drivable in dept of motor vehicles VT.

In the state of Vermont, the DMV will issue a salvage title if the vehicle is newer than 15 years old and has sustained enough damage that it is more expensive to repair than the car is worth.

Insurance companies often refer to it as “totaling” the car and they will provide the vehicle owner with a replacement while selling the original salvage vehicle at auction. But how to make such car insured and what is a rebuilt car title in Vermont?

The state of Vermont (VT) has two different salvage titles:

  • Salvage Only – This means the car could be repaired and issued a rebuild title as long as it passes inspection and is deemed safe and roadworthy.
  • Parts Only – This type of vehicle is beyond repair and the state has deemed that it can never be driven again. It can only be sold for its parts and scrap metal. People who have sell and exchange car details business know how to check such kind of vehicles on auctions with good rating and reviews.

How to Get a Rebuilt Title

The state of Vermont will require that you get the salvage car inspected. You will also need to fill out the rebuilt salvage title application available through the Vermont Department of Motor Vehicles. That application requires detailed information about the car including:

  • Your contact information including name, co-owner, address, phone, email, and connection to the co-owner.
  • The basic vehicle information including make, model, year, VIN number, weight, axles, cylinders, and fuel type as well as the state of the original title.
  • Detailed information about the vehicle including odometer reading, type of damage described in detail, and where you acquired the vehicle.
  • A description of vehicle use, either: crushed, dismantled, parts-only, auction for salvage, rebuilt for use on public roads, or other.

Once you have the application completed, then you will need to take it and have the salvage car towed to the local DMV for an inspection. Only after the repairs you have done are inspected and deemed safe will you be able to get a rebuilt title.

In most cases, the car will need to be inspected by a law enforcement officer as they need to confirm that there are no stolen parts on the car. There will be inspection fees, and you will have to pay a new title fee for the rebuilt status. Finally, since you are likely salvaging a gas-powered car in Vermont, you will also need to pay an extra $70 per year as a registration fee.

What Insurance Will Cover

Keep in mind that all insurance companies have different policies and rules. Some will be more than willing to insure a rebuilt car. Some will not. Additionally, some will only offer liability while other insurance companies may even be willing to provide comprehensive coverage.

When you purchase a salvage vehicle, you are going to have to deal with some red tape, and you will also need to shop around with different insurance companies until you find a policy that actually works for you.

Where to Buy a Salvage Car

If you want to purchase a salvage vehicle, then your best option would be an online car auction. You can find cheap used cars with salvage titles and bid on them straight from the comfort of your home. This is a much lower stress option, and an easy way to find the right car to purchase. You also can share a link of good lot review with your friend to see his reaction and comment.

Keep in mind that finding the right auction house is important too. The right one will actually set up the transport of the vehicle for you, although keep in mind that buying out of state can mean more red tape to get the rebuilt title in Vermont. However, it could still be worth the cost.

Find information on Rebuilt Title Laws for Other US States. Explore our Vehicle Auctions, as well as finding more information about How These Auctions Work.