Can You Get Insurance on a Salvage Title Motorcycle?

Imagine you’re riding your motorcycle on a beautiful day, feeling the wind and enjoying the freedom of the open road. This isn’t just any bike—it’s a salvage title motorcycle you bought at a great price and fixed up yourself. It’s more than just a ride; it’s a project you’ve poured your heart into.

But as you enjoy your ride, you might wonder, “Can I get insurance for my salvage title motorcycle?” This is a common question for many riders who own salvage title bikes. Getting insurance for these motorcycles can be a bit tricky and confusing.

In this article, we’ll explain everything you need to know about insuring a salvage title motorcycle. We’ll cover what a salvage title is, the legal steps you need to take, the types of insurance available, and how to get the best coverage. Whether you’re new to salvage motorcycles or have been riding for years, this guide will help you protect your bike and enjoy your rides with peace of mind.

Understanding Salvage Titles

A salvage title is a legal document issued when a vehicle, such as a motorcycle, is damaged to the point where the cost of repairs exceeds a certain percentage of its market value. This typically happens when the vehicle is involved in an accident or suffers severe damage due to a natural disaster.

The insurance company declares the vehicle a total loss and either the owner of the vehicle or the insurance company can apply for a salvage title. The specific percentage that determines a total loss can vary depending on the insurance laws in your state. For instance, in Nevada, a vehicle is considered a total loss if the damage exceeds 65% of the fair market value.

A salvage title serves as a warning to potential buyers about the vehicle’s history and the type of damage it has incurred. This could include flood damage, fire damage, or damage related to an auto accident. The salvage title process also ensures that a vehicle has not been rebuilt or restored with stolen or defective parts.

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It’s important to note that the laws regarding salvage titles can vary depending on the state in which you live. Therefore, it’s crucial to check the specific regulations in your state if you’re considering buying or selling a vehicle with a salvage title.

Can You Get Insurance on a Salvage Title Motorcycle?

A salvage title motorcycle is one that has been declared a total loss by an insurance company due to extensive damage. This means the cost of repairs exceeds the motorcycle’s market value. As such, it’s generally not possible to get insurance for a motorcycle with a salvage title.

The primary reason is that since the bike has been declared a complete loss, it has no designated value. You cannot insure something with no value. Additionally, there are safety reasons associated with insuring a salvage title motorcycle. Even if the motorcycle is repaired, there could be underlying issues that are not immediately apparent. These unknown damages pose a risk, making insurance companies hesitant to offer comprehensive or collision coverage.

However, it’s important to note that while motorcycles with a salvage title are not insurable, those with a rebuilt title can qualify for insurance coverage. This involves changing the status of the motorcycle from salvage to rebuilt, which requires making necessary repairs and having the motorcycle inspected by the State Patrol or an official from the Department of Motor Vehicles.

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Contrary to popular belief, it is indeed possible to get insurance for salvage title motorcycles. While some insurance companies may be hesitant or charge higher rates, there are providers out there who specialize in insuring these types of bikes.

How to Get Insurance on Salvage Title Motorcycles?

Getting insurance for a motorcycle with a salvage title can be a bit tricky, but it’s not impossible. Here’s a step-by-step guide on how to do it:

1. Change the Title Status: The first step is to change the status of the motorcycle from salvage to rebuilt. This involves making necessary repairs and having the motorcycle inspected by the State Patrol or an official from the Department of Motor Vehicles.
2. Apply for Insurance: Once the motorcycle has a rebuilt title, you can apply for insurance. To do this, you will need to provide the insurance agency with the title and registration of your vehicle. You may also need to give them a statement from the mechanic who completed your motorcycle’s inspection stating that it is roadworthy.
3. Limited Coverage: Keep in mind that even with a rebuilt title, you might only get limited coverage. Insurance companies may be hesitant to offer comprehensive or collision coverage due to the risk of unknown damage.
4. Shop Around: Not all insurance companies offer insurance for motorcycles with a rebuilt title. Therefore, it’s important to shop around and find an insurance provider that specializes in insuring these types of bikes.

Remember, the rules and regulations regarding salvage and rebuilt titles can vary by state, so it’s crucial to check the specific regulations in your state.

From Salvage to Rebuilt Title

Changing a salvage title to a rebuilt title involves several important steps. Here’s a straightforward outline of the process:

1. Purchase the Salvage Vehicle:

• Obtain the salvage title in your name.
• Run a vehicle history report to understand the extent of the damage.

2. Make Necessary Repairs:

• Repair all damaged parts and ensure the motorcycle is roadworthy.
• Keep detailed receipts for all parts and labor involved in the repairs.

3. Document the Repairs:

• Take photos of the motorcycle before, during, and after repairs.
• Prepare a detailed list of all repairs made.

4. Complete Required Forms: Fill out the necessary forms for a rebuilt title application. This typically includes a VIN inspection form, odometer statement, repair receipts, and a rebuilt vehicle statement.

5. Schedule a Vehicle Inspection:

• Arrange for a safety inspection by an authorized DMV facility or state police to verify that the motorcycle is roadworthy.
• Pass the inspection to proceed with the application.

6. Submit Paperwork and Fees:

• Submit all required documents, inspection reports, and applicable fees to your state’s DMV.
• Include the original salvage title with your submission.

7. Receive the Rebuilt Title: Once the DMV reviews and approves your application, they will issue a rebuilt title for your motorcycle.

This process can vary slightly depending on your state, so it’s important to check with your local DMV for specific requirements.

Insurance Coverage for Rebuilt Title Motorcycles

Insuring a motorcycle with a rebuilt title can be a bit more complex than insuring one with a clean title, but it is definitely possible. Here are the types of insurance coverage you can typically obtain for a motorcycle with a rebuilt title:

1. Liability Coverage: This is the most basic type of insurance and is often required by law. It covers bodily injury and property damage that you may cause to others in an accident. Most insurers will offer liability coverage for motorcycles with rebuilt titles.
2. Comprehensive Coverage: This covers damage to your motorcycle from non-collision events such as theft, vandalism, fire, or natural disasters. Some insurers may offer comprehensive coverage for rebuilt title motorcycles, but it might come with higher premiums or limited options.
3. Collision Coverage: This covers damage to your motorcycle resulting from a collision with another vehicle or object. Similar to comprehensive coverage, collision coverage may be available but could be more expensive or limited for motorcycles with rebuilt titles.
4. Uninsured/Underinsured Motorist Coverage: This protects you if you’re involved in an accident with a driver who doesn’t have sufficient insurance. This type of coverage is generally available for motorcycles with rebuilt titles.
5. Medical Payments Coverage: This covers medical expenses for you and your passengers in the event of an accident, regardless of who is at fault. Availability of this coverage can vary, but it is often offered.
6. Custom Parts and Equipment Coverage: If your motorcycle has custom parts or accessories, this coverage can help protect those investments. Insurers may offer this coverage, but they might have stricter requirements or higher premiums for rebuilt title motorcycles.

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It’s important to note that the availability and cost of these coverages can vary significantly between insurance companies. Some insurers might be more willing to provide coverage for rebuilt title motorcycles, while others may have stricter policies or higher premiums.

What’s the Difference Between Salvage, Rebuilt and Non-repairable Motorcycles?

Here’s the difference between salvage, rebuilt, and non-repairable motorcycles:

1. Salvage Motorcycles: A motorcycle is given a salvage title when it has suffered extensive damage, such as from an accident or natural disaster, to the point where the cost of repairs exceeds a certain percentage of its market value.
2. Rebuilt Motorcycles: A rebuilt title signifies that a vehicle with a salvage title has been repaired and is now safe to drive. The repairs have been completed by a licensed mechanic or body shop, and the vehicle has passed a thorough inspection to meet specific safety requirements. 
3. Non-Repairable Motorcycles: Owners of non-repairable vehicles can apply for a Non-repairable Certificate, which prevents the vehicle from being titled or registered in the state. These are vehicles that are so severely damaged that they cannot be safely repaired for road use.

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Remember, the laws surrounding salvage, rebuilt, and non-repairable titles can vary by state, so it’s crucial to check the specific regulations in your state. 

What Should I Watch Out for With Salvage Title Motorcycles?

When considering a salvage title motorcycle, there are several key factors to keep in mind:

1. Reason for Salvage Title: Understand why the motorcycle received a salvage title. It could be due to an accident, flood, fire, or theft recovery. Knowing the cause helps assess the extent of damage and potential repair costs.
2. Inspection and Repairs: Have a trusted mechanic inspect the bike thoroughly. Look for hidden damages like frame cracks or transmission issues that might not be immediately visible. Ensure that the repairs needed are feasible and within your budget.
3. Vehicle History Report: Obtain a detailed vehicle history report. This report will provide insights into the bike’s past, including previous damages and repairs.
4. Insurance and Resale Value: Be aware that insuring a salvage title motorcycle can be more expensive and challenging. Additionally, the resale value of such bikes is typically lower, which might affect your long-term investment.
5. Compliance with Local Regulations: Ensure the motorcycle complies with local regulations for salvage vehicles. Some regions have specific requirements for registering and insuring salvage title motorcycles.
6. Potential Savings: While salvage title motorcycles can be significantly cheaper, weigh the cost savings against potential repair expenses and future issues. Sometimes, the initial low price might not justify the long-term costs.

By carefully considering these factors, you can make a more informed decision about whether a salvage title motorcycle is the right choice for you.

FAQs

Conclusion

Getting insurance for a salvage title motorcycle can be a bit tricky, but it’s definitely possible. You need to understand what a salvage title is, make sure the bike is repaired properly, and follow your state’s rules to get a rebuilt title. Finding insurance might take some extra effort, and it could be more expensive, but with the right information, you can protect your motorcycle and enjoy your rides.

Milo Thistlethwaite

Milo Thistlethwaite is an auto insurance guru with over 8 years of experience in the industry. Holding a CPCU (Chartered Property Casualty Underwriter) certification, Milo is passionate about helping drivers find the best coverage for their needs. As an author on the ‘Insurance Guy’ blog, Milo writes clear, easy-to-understand articles about auto insurance.