At Freedom National, we want to go beyond offering car insurance to help make you a more informed, safe, and empowered car owner. That includes when it comes to making decisions about the type of vehicle you purchase, and whether you’ll be able to insure that vehicle.
This guide is all about a unique case in the world of auto insurance— insuring salvage title vehicles in the state of Utah. In this article, we’ll cover the most frequently requested information about salvage title Utah vehicles, including:
- What is a salvage title?
- Specific salvage title Utah rules
- Insurance information about salvage titles in Utah
- How to ‘rebuild’ or ‘restore’ a salvage title in Utah
- What to expect when owning and driving a salvage title in Utah
- Frequently asked questions about salvage titles
Without further ado, let’s get started!
What is a Salvage Title?
To understand what a salvage title actually is, let’s start with car insurance. The relationship between insurers and car owners works like this— policyholders pay their insurance premiums, and in the event of a covered accident, the insurer pays out an agreed-upon amount in order to pay for repairs to the covered vehicle until it’s returned to its former glory.
But what happens when it would cost more to repair a vehicle than it’s actually worth after an accident? That wouldn’t make financial sense for insurers or car owners. Instead, in these cases, the damaged vehicle is deemed a ‘total loss’ and the insurer pays the owner the amount of the vehicle’s value, with the intent that it can be used to go toward the purchase of a new vehicle.
But that damaged vehicle is still around, so what if the owner decides they want to keep it or sell it themselves?
The authorities need some way to notify all interested parties that the vehicle is damaged to the point that it’s not street legal and cannot be safely driven or insured. This is when a vehicle is assigned a salvage title. Essentially, a salvage title declares ownership of the vehicle while signifying that the vehicle needs significant repairs before it can be street legal again.
By the way, salvage titles aren’t just applied to vehicles in car accidents. They can also be applied to vehicles that are significantly damaged due to floods or other occurrences— anytime the cost to repair a vehicle exceeds its fair market value.
Salvaged Titles in Utah
Here’s how the Utah DMV defines a salvage vehicle:
A salvage vehicle is a vehicle damaged by collision, flood, or other occurrence to the extent that the cost of repairing the vehicle for safe operation exceeds its fair market value; or a vehicle that has been declared a salvage vehicle by an insurer or other state or jurisdiction, but is not precluded from further registration and titling (UCA §41-1a-1001). A rebuilt/restored vehicle is a salvage vehicle that has been repaired and restored to operation.
In Utah, anyone seeking to sell a salvage title at auction must provide the purchaser with a disclosure statement with specific wording laid out by the state authorities.
The Utah DMV website also outlines a helpful list of ways to spot a salvage vehicle if the seller is being less-than-forthcoming about its salvage status.
- Be suspicious of any vehicle that has a recently issued out-of-state title.
- Be suspicious of a private seller whose name does not appear on the title.
- Use an on-line commercial title-search company to research the history of the vehicle (CarFax, for example).
- Check the door gaps.
- Check both sides. It is unusual that both sides will be exactly the same when a vehicle has been damaged.
- Examine the paint. Check the doorjamb, moldings, and plastic cover items. Check the dashboard, which may not have been repaired due to the cost
- Check the roof and doors for body filler. Check that the rear tailgate and body match. Check the paint match between the tailgate and the quarter panel.
- Have the vehicle checked by a body shop and mechanic. Check under the car for damage.
Insurance and Salvaged Titles in Utah
Most insurance companies won’t insure a vehicle with a salvage title— after all, a salvaged vehicle by definition can’t be legally driven, so why would an insurer have an interest in ensuring that vehicle?
However, most insurance companies will insure a vehicle that has received a rebuilt title (more on that in the following section). In some cases, vehicles with rebuilt titles will only qualify for insurance that covers the state-required minimums, without the option to add additional or optional coverages and minimums.
What is a Rebuilt Title? Is It Different from a Branded Title?
A rebuilt title is a title assigned to a vehicle that was assigned a salvage title, then repaired, reinspected, and re-registered as a functioning vehicle. These titles are distinct from traditional titles in that they alert anyone who inspects the vehicle title that the vehicle in question was once damaged to the point of being a total loss.
In Utah, rebuilt titles are given a special brand that says it’s been ‘rebuilt/restored.’ This brand has given Utah rebuilt titles the name ‘branded’ title.
In Utah, a rebuilt title and a branded title are one and the same thing.
Sellers who are looking for buyers for a rebuilt or branded title are legally required to disclose that the vehicle’s title was rebuilt.
How to Rebuild a Salvage Vehicle in Utah
The first step in acquiring a rebuilt or branded title for your salvage vehicle in Utah is completing the necessary repairs. This will likely be the most costly aspect of the process.
Once you’ve completed the necessary repairs to get your vehicle roadworthy again and you have the salvage title in hand, it’s time to contact an authorized vehicle inspector to have your vehicle inspected. Once the vehicle is inspected and (hopefully) approved, you have two months to report to the Utah DMV with your salvage title, identification, and inspection report. Here they’ll have you fill out any other relevant forms, pay any fees associated with registering your specific vehicle, and the DMV will process your forms and register your salvage title as being rebuilt and restored.
Owning and Driving a Salvaged Vehicle in Utah: What to Expect
Once your vehicle has been registered as rebuilt and restored, what happens next?
Generally, you can drive the vehicle as normal with a few caveats. You may find that some insurers are reluctant to offer more than basic coverage, and you may find the vehicle a bit difficult to sell down the road— at least for market value.
FAQs
Check out our answers to some of the most common questions we receive about salvage title Utah vehicles here at Freedom National.
Should I buy a salvage title Utah vehicle?
The decision of whether to purchase a salvage title vehicle in Utah or any other state is a personal one that depends on a range of factors.
The biggest factor? Information. Buying a used vehicle is always a matter of getting as much information as you can about a vehicle before you buy, and salvage title Utah vehicle makes that even more imperative. Never purchase a salvage title vehicle without a third-party inspection, all necessary disclosures from the seller, and an incident history for the vehicle in question.
Meanwhile, always be wary of anyone who does not openly disclose that the vehicle they’re selling has a salvage title at the beginning of the interaction or when marketing the vehicle. If they’re willing to be sneaky about information like that, what else may they be attempting to hide from you?
Can a vehicle that was once a salvage title vehicle have a completely clean title?
No. Even if a vehicle has been repaired, inspected, and re-titled, once it has at some time received salvage status it will always have the brand indicating that it is a rebuilt title.
Conclusion
Have more questions about car insurance? Feel free to contact us today, or get started now for your free quote and get well on your way to finding the best cheap car insurance online with Freedom National!
