Car In Alabama Hills
What is Salvage title? How to articles Car Insurance

How To Insure and Register an Auction Car in Alabama?

By Mike Richards Updated: 05/22/2019 Posted: 10/16/2015

When a vehicle has been declared a loss because of an accident or because of water damage, it will carry a salvage title. This means that it can’t be driven in Alabama. When you buy one of these vehicles from an auto auction online, you could simply use it for parts. However, many people want to rebuild the vehicle so they can drive it. In order to do this, you need to go through several steps.

 Rebuilding the Vehicle

If you are going to rebuild the vehicle purchased at the auto auction online, you will need to have a rebuilder’s license, and then you have to make sure the vehicle has been restored to good working condition. To get the rebuilder’s license, you will have to apply through the Alabama Department of Revenue’s License Tax Section. They will provide an application. You will also need to provide a $10,000 surety bond. This ensures that you will rebuild the car or truck.

After the rebuild is complete, you will then need to take it in for an inspection. Only those who have a rebuilder license can apply for this inspection. When you apply to have the vehicle inspected, you will need to include an application for the inspection, remittance advice, the original salvage title, a copy of the rebuilder’s license, and pay a $90 fee. You must also bring in bill of sale forms for the components used in the rebuild – both major and minor. Only the major component parts will need notarization. These bills of sale show that all of the parts for the vehicle were obtained legitimately and that they are not stolen.

Since it is difficult to get this type of license on your own, you may find that it’s easier to work with someone who already has a rebuilder license and who rebuilds vehicles often. After the vehicle goes through the inspection, you will be able to receive your license plates, rebuilt title, and get insurance.

 Getting Insurance for Vehicles from an Car Auction Online

After you rebuild the vehicle so you can get your new title, you can insure the vehicle. Most insurance companies are able to offer liability insurance for your vehicle with no problem. After all, liability only covers the potential damage that your vehicle causes to other people and property. Getting comprehensive and collision coverage can be far more problematic, but it is still possible.

You should begin talking with insurance companies even before you buy the vehicle from the auto auction online, so you can determine which companies will be able to provide you with the coverage you need. Of course, many who buy these used vehicles choose to have only liability coverage. It’s up to you what level of insurance you feel you need for the vehicle.

In Alabama, rebuilding and titling salvage cars from an auto auction online can be a complicated process. However, since you are able to save so much money on the initial cost of the vehicle, it could still be a good opportunity to get the vehicle that you want. Look at some of the auto auctions online to get a better idea of the type of vehicles that are available.

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