Can You Get Insurance on a Salvage Title Motorcycle?

The moment you get a salvage title on your motorcycle it is deemed a total loss, and that’s why you can’t get insurance for a motorcycle with a salvage title. If your motorcycle has gotten a salvage title by your insurance company, this means that its repair cost is significantly higher than its current market value.  

Typically, the cost of repairing the motorcycle can range from 75% to 90% and above. This makes it very costly for insurers to cover salvage title motorcycles. On top of that, it is illegal to insure a motorcycle with a salvage title in every state in the US.  

Ultimately, whether it’s excessively high repair costs, or legal boundaries, most insurers are bound by these barriers. So, unfortunately, you can’t get insurance on a salvage title motorcycle.  

But there are ways to change the salvage title to a rebuilt title. When you get a rebuilt title, your motorcycle is once again fit both financially and legally for getting insured.  

In this article, you will learn what is a salvage title motorcycle, reasons why you can’t get insurance with a salvage title, workarounds to get insurance with a salvage title, and tips to negotiate insurance rates with a rebuilt title. 

What is the Salvage Title for a Motorcycle?

A salvage title for a motorcycle means that your bike has been totaled and is beyond repair. Typically, a salvage title is issued by an insurance company that labels the motorcycle as ‘not worth repairing’.  

The biggest downside of getting a salvage title is, your motorcycle is no longer fit to drive, nor fit for insurance. If you have an existing motorcycle insurance policy, a salvage title can quickly lead to its cancellation. Plus, it’s almost impossible to get insurance for your motorcycle as long as it has the salvage title. 

4 Reasons Why You Can’t Get Insurance on a Salvage Title Motorcycle 

Unfortunately, a salvage title is an on-spot red flag on your motorcycle which implies it cannot be insured. As a customer, it’s natural to feel like “why can’t I get motorcycle insurance with salvage title, even if I’m willing to pay a higher premium?”  

The thing is, if it were that simple then most insurers would charge a higher rate for salvage title motorcycles. In fact, there are a few key reasons why insurance companies cannot provide insurance which includes the following.  

• Too Costly: As the cost of repairing a salvaged motorcycle can cost 75% to 90% more than the bike’s actual value or current market price. This makes it excessively expensive to cover the motorcycle’s repair, maintenance and replacement costs.
• Legal Restrictions on Insuring Salvage Motorcycles: Insurance companies are obligated to comply with Government regulations. As it is illegal to insurance motorcycles with salvage titles, insurance companies are not legally allowed to offer insurance to motorcycles with salvage titles.
• Uncertainty About Vehicle Safety: Usually motorcycles with a salvage title may have lots of safety issues. After a motorcycle is badly damaged or totally wrecked, it’s hard to identify every issue, so it may have potential safety issues. This can lead to sudden breakdowns, and deadly accidents. So, there’s a higher chance of more claims which makes the motorcycle a high-risk asset.
• Higher Risk of Insurance Fraud: Insurance fraud is very common in the US, and that’s why insurance companies are always on high alert. As of 2022, 10% of all insurance claims were fraudulent which led to insurance scams of $308.6B. There is evidence of deliberate motorcycle crash to claim insurance. So, that’s another reason, you can’t insurance on salvage title motorcycle. 

How to Get Insurance on a Salvage Title Motorcycle?

It’s still a fact that you can’t buy insurance on a salvage title motorcycle, but if you can convert your motorcycle’s salvage title to rebuilt title, then your motorcycle will once again be fully eligible for insurance.  

So, if you want to get insurance on a salvage title motorcycle then please the steps as follows. But remember, it’s going to be an expensive, time-consuming and tedious process, especially because the first step is to repair your worn-out motorcycle.

Repair the Motorcycle

The reason your motorcycle has a salvage title is because it’s in a condition that’s difficult, and very expensive to repair. If you have an active collision, and comprehensive motorcycle insurance, you can claim that to cover the repair costs up to your coverage limit. 

In case it exceeds your coverage limit, then you will have to fund the remaining repair costs out of your own pocket. And, if you don’t have an active motorcycle insurance policy to cover the repair expenses, then you need to self-fund the entire repair expense on your own.

Regardless of whichever method you choose to pay your motorcycle’s repair costs; you will have to get your motorcycle back into a safe riding condition. So, once it’s fully repaired, the motorcycle is technically eligible for the rebuilt title.  

Get a State Approved Motorcycle Inspection

After repairing your motorcycle, you will need official proof, and endorsement that your motorcycle is operational, safe and fit for riding. So, you will need to get the bike inspected by a State Approved organization such as the local DMV.  

To get it done, take your motorcycle to DMV’s inspection center. You will need to make an application for the inspection, and your motorcycle’s rebuilt title. So, get all the paperwork done, pay the application fee of $100, and make sure to submit the following documents with your application.  

List of Documents, and Application Process:  

• Submit one or more photographs of the vehicle in its salvage or wrecked condition before any repairs are made.
• Provide a completed and signed Form MV-1 Title/Tag Application.
• Include the original valid salvage title issued in the vehicle owner’s name or properly assigned to the owner.
• Complete and sign Form T-22R Request for Inspection of a Rebuilt Motor Vehicle.
• Submit a completed and signed Form T-129 Labor and Parts Certification.
• Attach receipts for all new or used parts used in the restoration or rebuilding of the vehicle, ensuring the following details are included:
• Part names and stock numbers.
• Purchaser information matching the vehicle owner or rebuilder (The rebuilder’s name on the receipts must also appear on Form T-129).
• For used parts, include the part name and the Vehicle Identification Number (VIN) of the source vehicle.
• The vehicle supplying the parts must have a title on file with the Department or provide it with the application.
• For parts from another state, include a letter of certification from that state.
• Provide a copy of the Rebuilder’s License.

After applying, a vehicle inspection officer will be assigned to inspect your motorcycle. The inspecting officer will check your bike’s mechanisms such as engine, brakes, turning signals, brake, frame integrity and more.  

Once your motorcycle passes all the DMV requirements, and gets approved by the inspecting officer, your motorcycle is now qualified for the rebuilt title.

Obtain a Motorcycle Rebuilt Title 

After your motorcycle is checked, and approved by a DMV vehicle inspecting officer, you should get the motorcycle rebuilt title on the same day. But if it requires further processing time, the DMV officials will inform you of the number of days it might take to issue the rebuilt title.  

Usually, it can take up to 10 business days at max for your local DMV to issue a rebuilt title. You can always call the DMV office or visit them to check whether your motorcycle has been updated to the rebuilt title.  

Plus, you can use online tools such as CarFax to check whether your motorcycle’s status has been updated from the salvage title to rebuilt title by simply using the bike’s VIN (vehicle identification number) to view its current title status.

Either way once you get the confirmation, go to the DMV office, and collect the new license plate with the rebuilt status. With the new license plate, and the rebuilt status, your motorcycle is once again eligible for insurance.

Find Insurers that Offer Policies for a Motorcycle with Rebuilt Title 

There are many insurance companies that are reluctant to offer motorcycle insurance with a rebuilt title. This is mainly because as your motorcycle received the salvage title, it is seen as a substantial risk. Another reason is you may be perceived as a high-risk rider.  

On the other hand, a rebuilt status is concrete evidence that your motorcycle is totally fit and is safe for riding. So, on that note, there are many insurance companies that offer motorcycle insurance with a rebuilt title.  

The thing is you need to find motorcycle insurance companies that offer the best coverage within your needs, and budget. You can search for insurance agencies nearby or contact top agencies to see whether they offer motorcycle insurance with rebuilt title.  

After finding insurers that offer motorcycle insurance with a rebuilt title, contact them and talk to their agents to get a quote.  

Although, it can get difficult to find an affordable insurance agency that offers cheap motorcycle insurance with the right coverage based on your requirements and budget. So, to get the best motorcycle insurance policy even with a rebuilt title, you should consider exploring our extensive coverage options.

Tips for Negotiating Insurance with Rebuilt Motorcycle Title

It can get somewhat challenging when it comes to negotiating insurance rates with a rebuilt motorcycle title. But with some tactful approaches, you can persuade and negotiate for getting an affordable motorcycle insurance or lower the rate to an extent. 

Here are some practical tips for negotiating insurance with rebuilt motorcycle title.

• Maintain a clean riding record
• Take a safety motorcycle course
• Highlight your rebuilt status
• Opt for liability-only coverage initially
• Provide comprehensive documentation
• Discuss better offers by other insurers
• Seek bundle policies or discount offers
• Join someone else’s insurance policy 

Before you get down to the negotiation it is crucial to know how much does motorcycle insurance cost. Also, if you have lost your driving license for being involved in a critical bike accident, it is also important to know whether you can get motorcycle insurance without a license.  

Apart from that if you’re a new rider, it’s also essential to know if you can get motorcycle insurance with a permit.

Bottom line

Here’s the harsh truth, it’s not going to be easy to get motorcycle insurance after getting a salvage title. You will have to spend a hefty amount on the motorcycle’s repair expenses, and then get it approved by a vehicle inspecting officer at the DMV to change your motorcycle’s status to rebuilt title.  

Getting all these done will definitely require a lot of time, money and effort. But if you are determined to fix this motorcycle, use it or sell it off in the near future, then you will have to take the hard route to get it reinsured.  

If you need more suggestions or help to get a rebuilt status and purchase motorcycle insurance policy at an affordable rate, consider finding an agent online or contact us today.

FAQ

How does a salvage title affect a motorcycle?

Once your motorcycle receives a salvage title, you can neither register it, nor ride it on the streets. Also, if you have an existing motorcycle insurance policy that will get cancelled very soon, and you cannot acquire insurance for a motorcycle with a salvage title.  

Can you get liability or full coverage insurance on a salvage title motorcycle?

No, the moment you get a salvage title, your motorcycle is no longer legally eligible for insurance. So, whether it’s liability insurance, or full coverage insurance, you can’t purchase any type of insurance policy for your motorcycle.  

Is there any way to insure a motorcycle with a salvage title?

Yes, you need to change your motorcycle’s salvage title to rebuilt title. While a salvage title is issued by an insurer, a rebuilt title is issued by the state’s official organization such as the DMV. You need to get your motorcycle repaired though, and ensure it’s totally fit, and safe to ride. Rebuilt title is only given to motorcycles that’s fully functional and is safe for riding.