- When a vehicle suffers severe damage, such as from a crash or flood, and is declared a total loss by the insurance company, it becomes a salvage vehicle and is issued a salvage title. A rebuilt title is issued if a salvage vehicle is repaired and restored to operation.
- The specific guidelines for rebuilt titles vary by state. Rebuilt vehicles must pass an inspection by a state-licensed inspection agency for a rebuilt title to be issued for the vehicle in most states. If the rebuilt vehicle passes inspection, it is legal to be driven on the highways.
- According to the Consumer Reports website, rebuilt autos may not be mechanically sound. Rebuilders may cut costs to make a profit and the repaired vehicle may not be reliable. Before purchasing a rebuilt vehicle, it is wise to have a trusted mechanic thoroughly check it out.