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However, the vehicle can only have a change status if the accident was reported to insurance. This means that even if a vehicle is shown as having no accidents, that doesn’t necessarily mean that’s true. That said, let’s take a look at the different statuses that insurance can deem a vehicle.
Different Vehicle Statuses
As we mentioned, there are many different statuses that insurance can give a vehicle. It’s important to remember that there are a lot of factors that can cause a vehicle to have a branded title including accidents, damage and theft recovery. Here’s how they work.
Clean Title
A vehicle with a clean title has no accidents that were claimed by insurance. Essentially, it’s a vehicle that has never been considered to be a total loss. It doesn’t have anything to do with whether or not there’s a lien on the vehicle; that’s a clear title. Anything other than a clean or normal title is considered to be a branded title, even if the vehicle is deemed safe.
Salvage Title
Salvage title vehicles are when insurance considers the vehicle a total loss. Essentially, they’re considered no longer safe to drive and have been severely damaged. The type of damage can be anywhere from cosmetic to requiring extensive repairs, including flood or fire damage. That said, salvage title cars can be fixed, unlike non-repairable vehicles, which have significant damage that cannot be fixed.
Rebuilt Title
When a salvage vehicle has been fixed, and the vehicle passes inspection, insurance considers that vehicle to be rebuilt. It’s now considered safe to drive again.
Altered Title
A vehicle given this status has had significant modifications since it was manufactured. This status is also used for homemade or built-from-scratch vehicles. It’s important to note that all of these types of vehicles have passed a series of thorough inspections before they were given this title.
Non-Repairable
Non-repairable vehicles are vehicles that the insurance company has deemed written off and cannot be fixed, unlike salvage cars, which can still be fixed. Damage to a non-repairable vehicle can occur from a major accident or natural disaster, as well as many other ways. These usually have structural and safety issues that pose significant risks and can never be insured again. These types of vehicles are typically used for parts or are scrapped.
Is Rebuilt Title Status Bad?
When you purchase a used car through a dealership or a private seller, there’s always a risk of the vehicle not being fixed properly; however, it’s much less likely with a dealership. That’s a risk with any used car, no matter the title. There are actually plenty of used, rebuilt title vehicles that turn out to be very reliable cars.
Before you or other potential buyers purchase any used vehicle, rebuilt or not, it’s always a good idea to get the vehicle inspected by a trusted mechanic. This can give you peace of mind before you make the purchase or prevent you from making a bad purchase.
The biggest thing about purchasing a rebuilt vehicle is that its value is always going to be lower than that of a clean title. So, before you make the purchase, it’s important to be aware of that. However, if the vehicle is reliable and you plan on keeping it for a long time, it may be the best option for you.
If you’re purchasing a rebuilt vehicle from a dealership, problems related to the rebuilt status of the vehicle aren’t usually covered under car warranties and can impact the interest rate of car loans as well as the ability to secure financing. For many, this can impact whether or not they can afford it, even though they’re usually cheaper than the same vehicle with a clean title.
How Rebuilt Status Affects Insurance
If you decide to purchase a rebuilt vehicle, you may be wondering: does a rebuilt title affect insurance? Well, it’s important to note that the rebuilt title can affect your insurance. This is because many car insurance companies consider rebuilt cars to be higher risk than those with clean titles. You may also only be eligible for certain coverages based on the previous damage to the vehicle, and there may also be extra costs to consider.
What Rebuilt Means In Different Provinces
In Canada, every province has its own way of doing insurance and policies. Let’s take a look at how these policies work with different vehicle statuses.
BC
In BC, all vehicle insurance is done by ICBC, also known as the Insurance Corporation of British Columbia. In BC, all insurance is public, so no matter where you get insurance, your rates will be the same.
When it comes to rebuilt vehicles, there’s nothing stating how your insurance is affected through ICBC. However, you may notice that there is a slight premium increase based on this. This is because the vehicle is considered to have added risk. That said, ICBC acknowledges that rebuilt vehicles are only the vehicles that were claimed. Plenty of clean title vehicles have also suffered considerable damage since not all accidents have been reported.
Alberta
In Alberta, car insurance is provided by private car insurance providers. While premiums will be higher if your vehicle has a rebuilt status, you can shop around. Every insurance company will offer their own premiums, so you can keep looking until you find the best deal. It may also affect your collision coverage or comprehensive coverage.
Ontario
Ontario is very similar to Alberta in that it also has private insurance. This means that you can shop around for better insurance rates. In Ontario, rebuilt vehicles are also charged a higher premium.
How Long Rebuilt Title Cars are Affected With Insurance
There is no time limit for how long the rebuilt status affects auto insurance. With that title, the vehicle is always going to be at a higher risk. So, essentially, as long as you own the vehicle, your insurance premiums and car insurance policy will be affected in some cases.
Pros and Cons of Rebuilt Status
While purchasing a rebuilt status vehicle can be scary, there are also some positive aspects to it. Let’s examine some of these.
Pros
One of the many reasons that people choose to purchase a rebuilt vehicle is because they’re a lower price than a vehicle with a clean title. They can often get a quality vehicle for a good deal and save money, since the rebuilt status lowers the market value.
Another reason is that the previous damage that’s done to each vehicle with a rebuilt status is different. Sometimes, vehicles that are considered to be a total loss only have cosmetic damage and weren’t in a major accident or had any major damage, so the mechanics of the vehicle are actually fine. Before you purchase the vehicle, though, you can look at the car’s history to verify this and have the vehicle inspected yourself.
Cons
Just like with any other used vehicle, there are some cons associated with purchasing a rebuilt vehicle. The first is that these vehicles have higher premiums on insurance no matter what the damage was. Also, if you’re getting an auto loan on a rebuilt vehicle, it could be more difficult depending on the lender.
If the damage was extensive to the vehicle, it’s possible that you may have to deal with similar issues in the future. However, this isn’t the case for all rebuilt vehicles. The most difficult part about purchasing a vehicle with a rebuilt status, though, is reselling it. It’s often very difficult to sell because not everyone is interested in a vehicle with a rebuilt status.
How to Ensure Your Rebuilt Vehicle is A Good Purchase
If you’re looking to buy a car that's considered a rebuilt vehicle, there are a few things you can do to help protect yourself during the purchasing process. Just like with any used vehicle, it can be hard to know the exact damage to the vehicle and how the vehicle is currently affected. Here’s what you can do:
- Ask for Proof of Insurnace: In order to prove the vehicle has rebuilt status or find out what the status of the vehicle is, you can ask to see the car insurance. This will show you the vehicle's registered specifics and what the provided coverage on the vehicle is.
- Test Drive the Vehicle: By test driving the vehicle, you can see how it handles and get a feel for whether there are any funny vibrations or lights on in the vehicle.
- Have The Vehicle Inspected: Before you purchase a used vehicle, you can take it to a mechanic or have the current owner take it to a mechanic or body shop to have a mechanic conduct an inspection and assess the vehicles’s condition. This may have a small cost to it, but it can allow you to figure out if purchasing the vehicle is worth it.
- Get A Car Fax or Vehicle History Report: As long as you have the VIN number of the vehicle, you can look up the vehicle’s history and get a picture of any previous damage that was done.
- Find Out About The Repairs: Before you purchase a rebuilt vehicle, you can find out what the specific repairs were and where they were completed as a way of ensuring that the vehicle was properly repaired. You can also find out where the inspections were done. This can help you get a clearer picture of what was fixed and how it could affect the vehicle in the future.
Final Thoughts
Purchasing a used vehicle always comes with risks, whether it’s a rebuilt vehicle or not. A car having a rebuilt status just means that the damage was reported to the insurance company, and after inspections, it was deemed to be rebuilt. Essentially, even a vehicle with a clean or normal title could have been rebuilt as well.
The good thing about purchasing a rebuilt vehicle is that they’re often cheaper than those with a clean title. However, before you purchase a rebuilt car or any used car in general, you should get an inspection done, which can be done at any mechanic shop. You should also do your research to get an idea of what previous damage was done to the vehicle and how it was fixed.
