Can You Get Insurance on a Salvage Title Motorcycle?

In order to legally drive a motorcycle on the road, you will need to get it insured. If the motorcycle has been taken apart and put back together again, it may be harder to get insurance for it. That said, it is not as impossible as some people may have told you. To get your vehicle road-ready, here’s how to insure a motorcycle with a salvage title.

Buying a salvage title motorcycle can save you money upfront, but navigating insurance for a rebuilt bike brings its own hurdles. While you can get coverage in most states, the type of protection might be limited. Understanding what a salvage title means and how to rebuild the bike properly is key to getting it approved for the road.

What is a Salvage Title Motorcycle?

A salvage title shows that the motorcycle has been deemed a total loss by an insurance company This usually happens after an accident when the repair costs reach 75% or more of the bike’s actual cash value The insurance company then sells the damaged motorcycle to a salvage yard and brands it with a salvage certificate of title,

Essentially, this title means the motorcycle is too damaged to be legally ridden until repairs bring it back to roadworthy condition. Some states use terms like “nonrepairable” or “parts only” to indicate a bike can’t be registered to ride on public roads anymore.

Can You Insure a Motorcycle with a Salvage Title?

The short answer is yes you can usually find insurance for a salvage motorcycle once it’s rebuilt. However coverage might be limited, and premiums could run higher than comparable models without the branded title.

Here are some specifics on how insurance works for salvage motorcycles:

Liability coverage is required in most states and readily available from standard insurers. This covers injuries or damage that you cause to others if an accident is your fault.
Comprehensive and collision are tougher to find. Insurers can’t accurately determine the value of a rebuilt bike, so they shy away from covering physical damage.
Specialty insurers cater to salvage vehicles if you can’t find coverage elsewhere. Expect to pay more for less coverage compared to a clean-title bike.
A state inspection and rebuilt title prove roadworthiness. This is required in most states before you can register or insure the rebuilt motorcycle.
An agreed value endorsement can help settle claims for what you determine the bike is worth, not the low book value.

How to Insure a Salvage Motorcycle

Follow these steps if you want to insure and register a salvage motorcycle:

Research your state’s salvage vehicle laws. Requirements for titling, registering and insuring rebuilt vehicles vary widely. Make sure you can obtain a rebuilt title for your motorcycle.
Rebuild the bike to safe operating condition. Fix all mechanical problems and get replacement parts for damaged areas. Keep receipts for proof of repairs.
Get a rebuilt inspection. Schedule an appointment with your department of motor vehicles or approved inspector. They will check that all repairs meet safety requirements.
Apply for a rebuilt title. Bring paperwork from the inspection to the DMV along with the salvage title. Pay required fees to get a new rebuilt title.
Shop for motorcycle insurance. Ask insurers specifically about coverage for rebuilt title bikes. You may need an appraisal or agreed value endorsement.
Register your motorcycle. With the new title and insurance, you can complete registration to make your rebuilt bike street legal.

Finding Motorcycle Insurance for a Salvage Title

Searching for insurance on a salvage motorcycle takes some persistence. Here are some tips:

Check with your current insurer first. There’s no guarantee they will insure a salvage bike, but long-time customers may have better luck.
Search for specialty insurers. Companies like Collector Motorcycle Insurance and American Modern Insurance cater to nonstandard bikes.
Compare quotes from national insurers. Large companies like Geico, Progressive and State Farm may cover salvage motorcycles case by case.
Prepare for limited coverage. Most insurers only offer basic liability on rebuilt bikes. Physical damage coverage will be restricted or excluded.
Consider an agreed value endorsement. This sets a fixed payout amount if your bike is totaled again. It costs more but brings peace of mind.
Raise liability limits above state minimums for better protection. The other driver’s injuries could exceed 30/60/10 basic limits.

What to Know About Rebuilt Motorcycle Titles

The process of acquiring a rebuilt or restored title proves to the DMV that your salvage motorcycle is roadworthy again. Laws vary by state, but in general you’ll need:

Inspection by an authorized mechanic or DMV investigator
Repair receipts or proof of parts replacement
Application form and title fees to exchange the salvage title
Emissions testing in some states

A valid rebuilt title gets you street-legal status again. This allows you to register the motorcycle and obtain insurance where required by law. Make sure to get the proper title before attempting to ride a salvage bike on public roads.

Pros and Cons of Insuring a Salvage Motorcycle

Insurance on a rebuilt title bike has advantages and disadvantages to weigh:

Pros

You regain legal registration status.
Meets minimum liability requirements.
Specialty coverage may be available.
Agreed value endorsement protects payout.

Cons

Limited physical damage coverage.
Proof of repairs may be required.
Premiums likely higher than for clean title bikes.
Insurers more readily deny claims.
Low settlement offers if totaled again.

If getting low-cost liability is your main goal, insurance on a salvage motorcycle may suit your budget. But more protective policies will range from difficult to impossible to acquire.

Is a Salvage Motorcycle Worth Insuring?

That depends on your tolerance for financial risk and passion for bike rebuilding projects. Expect obstacles like:

Spending more to repair than a similar clean-title motorcycle is worth
Not recovering your repair costs if the bike is totaled again
Paying high premiums for basic liability coverage only

However, with persistence, you can likely find an insurer willing to take on a rebuilt bike. If you’re handy with repairs and just need to meet state minimums, a salvage title motorcycle can make an economical ride. Just be prepared for insurance limitations.

The Bottom Line

Research Willing Providers and Coverage Options

There’s a chance that insurance companies won’t cover your motorcycle even after you legally change its title from “salvage” to “rebuilt.” Because of this, you will need to look into different insurance companies to find one that will cover your motorcycle. To increase your chances of getting approved, look into providers that specifically offer coverage for previously salvaged vehicles.

You must have liability insurance at the very least to pay for any damage you cause to someone else’s property or person. Aside from liability insurance, most insurance companies won’t offer additional coverage options to motorcycles that have been salvaged. If you want a more comprehensive plan, you will like need to conduct a substantial amount of research.

Get the Title Legally Changed

You will need to legally change the title of a motorcycle that has a salvage title before you can get insurance for it. A salvage title on a motorcycle means that the insurance company has decided it is a total loss and will not pay for it. As such, no other insurance agencies are going to want to take on the risk of insuring it. Plus, salvaged vehicles can’t be legally driven on the road. Because of this, a salvaged motorcycle can’t be insured until it’s been fixed up right and the title is changed.

To legally change the title of a salvaged car from salvaged to repaired, you must make all the repairs that are needed and carefully record them. Then, pay to have your vehicle properly inspected and provide all the required paperwork, forms, and documentation. If your car passes the state-recognized inspection, you can legally change the name of the title on it.

Can You Insure A Salvage Title?

FAQ

Is it worth buying a bike with a salvage title?

The market value of a motorcycle with a salvage title tends to be 20-40% lower than a vehicle with a clean title, though you could easily scoop up a bike at a 75% discount or more. Before making an offer, make sure you know what the value of the motorcycle would be with a clean title and negotiate from there.

Can you get full coverage on a salvage title in California?

Candace Baker, Car Insurance Writer No, you cannot insure or drive a car with a salvage title in California, as salvage-titled vehicles are cars that have been declared a total loss. You can get coverage on a previously salvaged car if you have it repaired and inspected by a state-certified mechanic.

What is the salvage value of a motorcycle?

Insurance companies declare motorcycles a total loss when repairs cost a high percentage of the bike’s value. A salvaged, reconstructed or otherwise “clouded” title has a permanent negative effect on the value of a vehicle. The industry rule of thumb is to deduct 20% to 40% of the Blue Book® Value.

Are motorcycles with a salvage title insurable?

Motorcycles with a salvage title are not insurable. Bikes with a rebuilt title can qualify for insurance coverage. That means you’ll need to get the title legally changed from its salvage status to the rebuilt designation.

Should you buy a bike with a salvage title?

You will get a great price on the bike. The market value of a motorcycle with a salvage title tends to be 20-40% lower than a vehicle with a clean title, though you could easily scoop up a bike at a 75% discount or more. Before making an offer, make sure you know what the value of the motorcycle would be with a clean title and negotiate from there.

What does a salvage title Mean on a motorcycle?

If a motorcycle has been issued a salvage title, it means that it has been written off as a total loss by an insurance agency. As such, no other insurance agencies are going to want to take on the risk of insuring it. Plus, salvaged vehicles can’t be legally driven on the road.

Can you sell a salvage title motorcycle?

If your bike has a “non-repairable” or “junk motorcycle” designation, then your only option is to scrap it yourself or sell it to a salvage yard that will scrap it. Learn more about buying and selling salvage motorcycles. Does a salvage title motorcycle need insurance?