Can a Vehicle With a Salvage Title Be Driven?

August 17, 2022August 17, 2022 Editor

Even if you are careful on the road, it is impossible to avoid car accidents. Sometimes the damage is minor, and sometimes your vehicle becomes a salvage title car in severe cases.

So what is the technical meaning of the salvage title, and can you drive a car with a salvage title in Canada?

Unfortunately, the answer is negative, as, in most provinces, it is illegal to drive a salvage car on a public road. Additionally, car insurance companies do not offer any policies for your salvaged vehicle.

But if you can refurbish the damaged vehicle, you will be eligible for a Rebuilt Title. This way, your car will be eligible for car insurance, and you can register it, drive it and even resell the vehicle. However, there are a variety of disadvantages, and in this guide, we have shared important information regarding cars with a salvage title.

After learning the answer to the common question, “can you drive a car with a salvage title?”, feel free to click the following link if you’d like to compare insurance companies and find cheap car insurance in Canada with a reputable insurance brokerage.

What exactly is a salvage title?

In Canada, a salvage title is a title given to heavily damaged cars. Your vehicle can also be tagged with a salvage title if it is classified and is deemed a total loss by the insurance company that paid for the accident. You may also get the salvage title if you alter the odometer.

Numerous factors define when a salvage title is applicable for your vehicle. However, it depends on the province and the city. Like, in most Canadian provinces, stolen or vandalized vehicles automatically get a salvage title unless the police have recovered them within 3 weeks of the incident. In this case, the insurance company has to pay off the previous owner.

The level for your vehicle to be considered a total loss is typically between 60 to 90% of the car’s value. Once a vehicle is declared a “write-off” (also known as a total loss) by an insurance company, it will automatically receive a salvage certificate. This means this vehicle can no longer be registered or driven on public roads.

After receiving the salvage title, the insurance company responsible for the vehicle will auction it to car remodelers or salvage yards.

Can you drive a car with a salvage title?

Can you drive a salvage title caris a question new car owners struggle with. As per government regulations, you are not allowed to drive around in a car that does not have a title. To operate a vehicle legally in Canada, it has to be registered. And for this to happen, the car must have a proper title to prove ownership.

For example, you were involved in an accident, and your vehicle got slightly damaged, but it can still run. However, according to the government’s perspective, driving with this vehicle will be against the law unless you have a proper title for it.

Once the government issues a salvage title for your vehicle, there is no option to remove it. The best way would be to repair it and get a rebuilt title. This is common in Canada, where you can buy a damaged vehicle with a salvage title, fix it, and then be eligible for a rebuilt title.

What is the process of getting a rebuilt title for your damaged vehicle?

Once a vehicle gets a salvage title, it will automatically be shifted to a salvage yard. It will be put up for auction, where you can buy and repair it. Next, you must call for an inspection to evaluate the car’s exact condition. In certain provinces, the buyer might have to deliver the automobile to an official inspection center run by the state. It is a car inspection facility monitored by the police or the Ministry of Transportation.

Once the inspectors and specialists are satisfied with the condition of your vehicle, it will get a rebuilt title. Unfortunately, inspectors only check the legal side of things. In most cases, they do not assess whether the vehicle is safe to drive or not. This is why most car insurance companies do not offer car insurance to salvage title cars, as they cannot calculate the vehicle’s fair value.

Can you get car insurance with a salvage title?

It is illegal to insure your vehicle with a salvage title. However, some insurance companies might offer insurance coverage if you obtain the rebuilt title for registration. The type of documentation varies from one province to another. So the best way to learn about the documentation process is to visit the Ministry of Transportation website.

The next step is to submit all the essential documents on the website and wait for a response. If everything goes right, you will receive a new title, and then you can register your vehicle by paying a small fee to insure it.

What will be the approximate cost for getting a rebuilt title?

Rebuilt Title or Reconditioned Title significantly impacts the selling cost of the vehicle. In most, a rebuilt car will cost 20 to 40% less than one with a clean title. However, it is always advised that you evaluate and assess the value of your vehicle personally before buying it.

Are salvage titled cars worth the investment?

Salvage title cars are a good investment from a buyer’s point of view. Since salvage title cars are much cheaper than ‘clean’ cars, this is the perfect choice for the buyers looking to buy cars on a low-budget, car enthusiasts and investors.

For instance, suppose the outside paint is severely damaged, but the mechanical parts like the transmission or the engine are intact. In such a case, you can quickly fix the outside with minimum investment.

Before buying a vehicle, you must determine whether it is clean, salvage, or has a rebuilt title. The colour of the title can easily determine it. The colour designations may vary from one province to another. However, in most cases:

A green title is considered clean.
An orange title is for a rebuilt car.
The blue title is for salvage.

Unless you are authorized, you cannot buy a salvage car, but you can buy a rebuilt salvage from any private seller.

Can you still drive a salvage title car in Canada? — Endnote

Salvage title cars are common in Canada. Now that you know the answer to the question, “can you drive a car with a salvage title?”,you can make smart investment choices.

However, before investing in a vehicle, you must be extremely careful. Remember that driving a salvage title car is against the law. You can also rebuild the vehicle and find a good insurance company to cover it.