Does Progressive Offer Insurance on a Salvage Title Car?
Progressive doesn’t offer insurance for salvage title cars, but they may be able to offer you full coverage if you obtain a rebuilt title.
Written by Andrea Barrett
Reviewed by Jessica Barrett
Progressive won’t insure a salvage title car. If you successfully rebuild the car, have it inspected after being salvaged, and obtain a rebuilt title,
Progressive
offers full coverage on a case-by-case basis.Whether you’ve purchased a totaled car or your existing car was deemed a total loss, it’s not always destined for the junkyard. Salvage cars—those that suffer extensive damage and are no longer roadworthy—are a great DIY project for automotive lovers, but if you plan on driving it, you’ll need to find insurance before you can hit the road. You’ll need to ensure it has a
rebuilt title
—and even then, coverage options might be limited.If you have a salvage car and you’re looking to do a glow-up, making sure you have the proper
car insurance
coverage is just as important as budgeting for the cost of repairs. If you’re looking for insurance for your salvage car, we’ve created a guide for everything you need to know about Progressive’s offerings.Does Progressive insure salvage title vehicles?
No—Progressive does not insure vehicles with a salvage title but will offer insurance for formerly salvage-titled cars.
But what’s the
difference between a salvage title and a rebuilt title
? If you purchased a salvage car that was declared a total loss and rebuilt it to be fully operational, you can apply for a rebuilt title. But before you are granted one, the vehicle must be inspected to ensure it’s roadworthy.Once you’ve been granted a rebuilt title on a car that has a salvage title, you can apply for auto insurance with Progressive. Depending on the model, you may be able to get
full-coverage car insurance
. If your vehicle isn’t eligible for full coverage, you can still purchase a liability-only policy or a policy that includes both liability insurance
and comprehensive coverage
.Keep in mind that finding car insurance companies that insure salvage title cars will be virtually impossible, as they are illegal to drive. Before you can apply for insurance, you will have to have a rebuilt title.
That said, not all insurers will offer insurance on rebuilt cars. Progressive is one of the few top auto insurance companies that offer insurance on rebuilt vehicles. Here are some others:
You may also be able to find insurance through smaller auto insurance companies, and each insurer might have a different process with varying coverage amounts, so you’ll want to shop around before deciding on an insurance policy.
MORE: How to insure a car with a salvage title
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What is a salvage title car?
You’re browsing a used-car website and suddenly, a vehicle grabs your attention with a price that’s too good to be true. After scanning the fine print, you see “salvage title.”
A salvage title car indicates that the vehicle has suffered severe damage in the past and has been deemed totaled by the insurance provider. When a vehicle’s damage exceeds a certain percentage of the value of the vehicle (usually between 75% and 90%), the insurer decides it’s not financially feasible to repair it and will declare it a "total loss."
Although the next steps vary by state, most Department of Motor Vehicles (DMV) will issue a junk or salvage certificate to the car. This means that the vehicle cannot be legally driven, sold, or registered in its current condition.
Sometimes, the car will be sold to a junkyard for parts or to DIYers looking for a project. But regardless of your state, the only way to legally drive it is to rebuild it and ensure it passes a safety inspection. Only then can you apply for insurance—but even with a rebuilt title, coverage options may be limited.
While buying a salvage title car can mean a seriously good bargain, purchasing a vehicle with a title is risky. There’s a high chance that the damage is extensive (maybe more than you bargained for) and you won’t find out until further into the repair process.
Can you get car insurance for a salvage title?
Simply put, you cannot buy car insurance for a salvage title car. Because most suffer extensive damage, they are unsafe to drive and will not pass a safety inspection.
If you want to insure a previously salvage-title car, you can apply for a rebuilt title after the car has been rebuilt and passed a safety inspection. But even still, many insurers are hesitant to provide coverage for rebuilt vehicles, as they have a higher amount of risk and uncertainty.
Can you get Progressive full-coverage insurance on a rebuilt title car?
While specific insurers will offer insurance for a rebuilt car, you’re unlikely to find full-coverage insurance that includes collision and comprehensive coverage. Progressive offers full coverage for rebuilt cars on a case-by-case basis. At the very least, Progressive will provide state-mandated coverage, such as
uninsured/underinsured motorist coverage
and personal injury protection (PIP)
.If Progressive approves full coverage for your rebuilt car, they may decide to cover your vehicle for less than its full market value. Sometimes, they may even deny you
collision coverage
if the car has a greater risk of causing an accident due to the previous damage it sustained.Does it cost more to insure a rebuilt title vehicle?
Because a rebuilt title car has a more extensive history, it can cost more to insure a rebuilt car compared to a car with a clean title. These cars may have unresolved issues from the repair or restoration process, which translates to a higher risk on the road—ad a higher likelihood of a costly liability claim.
Vehicles that have had major damages in the past are also likely to face more expensive damages if involved in future accidents, which increases the cost of full-coverage premiums for rebuilt titles.
But that doesn’t mean you’re stuck with sky-high insurance rates if you have a rebuilt title car—it just means you’ll have to work a bit harder to find a more affordable rate. When looking for insurance, browse at least three to five
car insurance quotes online
before committing to a policy."Jerryhelped me change to Progressive after being with my previous insurer for 25 years. The app is amazing! It grabs your information and finds you a huge variety of choices between carriers and coverage levels.”—Leila S.
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Does a salvage title lower the value of a car?
According to the Kelley Blue Book, a
salvage title
can decrease the value of a car between 20% and 40% depending on the extent of the damage the vehicle has ensured and the type of car. If you’re considering purchasing a salvage car, ask the seller about the car’s value before committing to the purchase—you’ll want to pay significantly less for this type of vehicle.What’s the difference between a salvage title and rebuilt title?
A salvage title is given to a vehicle that’s declared a total loss where the repair costs outweigh the vehicle's market value. Cars given a salvage title are deemed unroadworthy and generally unsafe to drive due to the danger posed by extensive damage.
On the other hand, a rebuilt title is given to a car that has been repaired and restored after having a salvage title. It notifies the buyer of the vehicle’s history and must pass a series of safety testing before it can claim the rebuilt title from the state’s DMV.
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