How to Register and Insure a Salvage Title Vehicle in California (2024)

A salvage title is issued to a vehicle that an insurance company declares a total loss due to damage, theft, or other reasons where the repair cost exceeds the vehicle’s value. This doesn’t mean the car can’t be operable again, but it signifies the repair costs surpass the car’s worth in the eyes of the insurer.

In California, a salvage title can be converted into a revived salvage title after someone rebuilds the vehicle and meets specific requirements.^[1] Here’s what you need to know about salvage titles and how to obtain a revived salvage title in California.

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What is a salvage title?

A salvage title is a legal designation given to vehicles that insurance companies deem a total loss due to significant damage from accidents, floods, natural disasters, vandalism, and other major events. When the cost of repairing the vehicle exceeds its actual market value, it’s declared a total loss.

After this, the state’s department of motor vehicles (DMV) or a similar agency issues a salvage title, indicating that the vehicle isn’t roadworthy in its current condition. For example, if a car is severely damaged in a flood and the repair costs exceed its value, the insurance company may declare it a total loss and issue a salvage title.^[2]

After a vehicle is totaled and issued a salvage title, it can be sold for parts if it’s in poor condition or auctioned off as a salvage title vehicle. These cars are typically purchased by salvage yards, rebuilders, or people willing to invest in repairing and restoring the vehicle to a roadworthy condition.

California’s salvage title laws

In California, salvage title laws dictate specific procedures for owners of vehicles with salvage titles. To register a revived junk vehicle with the California Department of Motor Vehicles, the owner needs the following:^[1]

• Completed Application for Title or Registration (REG 343) form

• Junk receipt issued by the DMV, a Verification of Vehicle (REG 31), or CHP Certificate of Inspection (CHP 97C) form

• Brake and light adjustment certificates

• Other applicable forms, like the Statement of Facts (REG 256), Declaration of Gross Vehicle Weight (REG 4008), Permanent Trailer Identification (REG 4017), and a smog certification

• Proof of ownership

• Additional forms as necessary, like the Application for Salvage Certificate or Nonrepairable Vehicle Certificate (REG 488C)

California’s salvage title laws ensure that such vehicles have proper inspections and meet safety standards before drivers take them back on the road. A salvage certificate is a legal document the California DMV issues, indicating that a vehicle was previously salvaged but has been rebuilt and restored to operational condition. This certificate is necessary if you want to register a revived salvage car in the state of California.

Revived junk vehicle vs. revived salvage vehicle

In California, a revived junk vehicle is one that was previously dismantled and reported to the DMV but has been restored to good condition for driving. On the other hand, a revived salvage vehicle is a vehicle that was declared a total loss by the owner or insurance company but has been rebuilt and restored to operational condition.

Both types of vehicles have undergone restoration, but the key difference lies in their initial status — junk vehicles were dismantled, while salvage vehicles were declared total losses due to damage. After restoration, both need to be registered again, following specific procedures outlined by the DMV.

How to turn a salvage title into a rebuilt title

To register, insure, and drive a salvage title vehicle in California, you’ll need to obtain a rebuilt title. Here’s how to do it:

1. Get the vehicle repaired

To turn a salvage title into a rebuilt title in California, you first need to get the vehicle repaired. This involves fixing all the damage so that the car is roadworthy and safe to drive. Eventually, you’ll provide the California DMV with documents like brake and light adjustment certificates.

2. Complete the required paperwork

Once the repairs are completed, you must complete the necessary paperwork. This typically includes filling out forms such as the Application for Salvage Certificate or Nonrepairable Vehicle Certificate (REG 488C). You’ll also need to provide proof of ownership and receipts for the parts used in the repairs.

3. Get the vehicle inspected

After you complete the paperwork, the vehicle needs to undergo a thorough inspection with the California Highway Patrol (CHP) or another authorized agency. During the inspection, the officer checks if the repairs meet safety standards and if the vehicle is roadworthy. If it passes the inspection, you’ll receive a Vehicle Identification Number (VIN) verification form.

4. Visit the DMV for a new title and registration

Lastly, you need to visit the DMV with the VIN verification form and other required documents to apply for a new title and registration. At the DMV, you’ll need to pay the necessary fees and provide all the inspection and repair documentation. Once approved, you’ll receive a rebuilt title, allowing you to legally register, insure, and drive the vehicle in California.

How to insure your revived salvage vehicle

Insuring a revived salvage vehicle can be challenging. While it’s not impossible, finding insurance for a rebuilt vehicle is harder than insuring a car with a clean title. Many national insurers might be hesitant to cover a vehicle with a rebuilt title due to its previous salvage status.

Even if you do find an insurer to cover the car, your coverage options might be limited. Typically, you may only qualify for liability coverage, which just meets the state’s minimum requirements.

When shopping for car insurance, it’s crucial to get quotes from various auto insurers. Rates for rebuilt title vehicles tend to be more expensive because fewer insurers are willing to take on the risk. Expect to pay elevated premiums compared to what you would for a car with a clean title.

In California, major insurers may offer coverage for rebuilt vehicles, but this can vary, and some insurers might refuse to cover rebuilt vehicles due to the perceived higher risk.

Average cost of car insurance in California

The average cost of car insurance in California is $142 per month for liability coverage and $296 per month for full coverage. If you’re looking for affordable car insurance in California, the following table sheds some light on average monthly liability-only and full-coverage rates from popular car insurance companies.

However, it’s important to note that auto insurance for a revived salvage vehicle may cost more than average, and not all insurers offer it.

Rebuilt title vehicle pros and cons

Before purchasing a salvage title vehicle and fixing it up yourself or buying a rebuilt vehicle, it’s best to understand the advantages and drawbacks of this type of vehicle.

Salvage title FAQs