Branded Title Auto Insurance in 2025 (What You Should Know)

Branded title auto insurance focuses on insuring vehicles with titles marked due to significant damage, such as accidents, flooding, or other major events. These titles, including salvage, lemon, or water damage designations, signal potential risks that can complicate insurance coverage.

Insurers often limit coverage options, making comprehensive and collision insurance difficult or impossible. Liability insurance is typically available but may come with higher premiums due to the perceived risks.

This article explains how branded titles affect car insurance, the types of branded titles, and what to consider when insuring these vehicles. Knowing the details is crucial for making informed decisions about branded title auto insurance, whether understanding insurer restrictions or evaluating potential cost implications.

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Understanding the Meaning of a Branded Title on a Car

So, what is a branded title? With the dangers of texting and driving also comes an increase in car accidents. A branded title vehicle is a vehicle that has been involved in a major collision or accident or has suffered some type of significant damage.

When a vehicle has a branded title, it means the car has previously suffered some type of serious damage or has been significantly compromised in some way. There are hail damage title brands, for example, and lemon title brands.

A vehicle’s title branding is handled by state agencies – like your state’s Department of Motor Vehicles (DMV). The system is designed to alert motor vehicle buyers of potential future problems with branded title vehicles.

Read More: Why does the auto insurance company want to see your title?

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Types of Branded Titles on Cars

There are different types of branded titles. Some titles refer to a vehicle’s accident history. Other titles refer to a car’s ‘lemon’ status. Some branded titles let you know a branded vehicle has been fully submerged in flood.

Some of the most common types of branded car titles include salvage, rebuilt, lemon, water damage, odometer rollback, hail damage, and flood titles. Each type reflects significant damage or issues with the vehicle, impacting its value and insurability.

Understanding these title brands is crucial when buying or insuring a car. For more insights on how these titles affect car values, check our article “How do auto insurance companies value cars?”

The Impact of a Lemon-Branded Title on Vehicle Value

Most states have some lemon law system. This lemon law system allows consumers to return new cars that have an unusually high number of problems. Lemon laws protect consumers and make it easy for vehicle buyers to return poorly made vehicles to the dealer.

Each state’s lemon law system has strict requirements governing which types of defects qualify a car to be returned. These laws vary from state to state. A car that meets lemon law requirements in California, for example, may not meet lemon law requirements in North Carolina.

So, how much does a lemon title affect value? If a consumer has used lemon law protections to return a vehicle, then a lemon title brand gets added to that vehicle’s title. If the dealership chooses to resell that vehicle, the next buyer will see this title brand on the vehicle history report.

Read More: Vehicle History and Its Effect on Auto Insurance Rates

Odometer Rollback Branded Title: What It Means for Insurance

A vehicle with 50,000 miles is worth considerably more money than a vehicle with 500,000 miles on it, all other things being equal. That’s why some unscrupulous vehicle sellers will ‘roll back’ the odometer, turning a high-mileage vehicle into a low-mileage vehicle in minutes.

Odometer rollback can be hard to detect without a skilled mechanic. However, if an odometer rollback has been detected, then the vehicle will receive an odometer rollback title brand. This title brand appears on the vehicle history report. Future buyers know the odometer has been rolled back, although they might never know the vehicle’s actual mileage.

Read More: Best Low-Mileage Auto Insurance Discounts

Salvage Title Branded: Implications for Buyers and Insurers

Some vehicles receive a salvage title brand after major damage. When a vehicle suffers damage that costs more to repair than the car is worth, then the vehicle will receive a salvage title brand. The car has been declared a total loss.

Different states have different rules governing a salvage vehicle. In some cases, a car with a salvage title in one state may have its record wiped clean when moving to another state. Generally, however, car buyers will be able to easily view the salvage title brand of a car before buying that salvage car.

Read more: Best Salvage Title Auto Insurance

How Water Damage Affects a Car’s Branded Title Status

If a car has been fully submerged in water during a flood, it may receive a water damage title brand. Floodwater can cause mildew and mold in the car’s interior. Saltwater can significantly affect the integrity of your vehicle.

Check the vehicle history report for a water-damage title brand. Any car that has been significantly damaged by water should have a water-damage title brand.

Hail Damage and Its Impact on Car Titles and Insurance

60% of severe weather insurance claims every year are related to hail. Hail can have a significant impact on the resale damage of an automobile, but it can also help used car buyers save a considerable amount of money.

Not all states issue a title brand for hail damage, especially in hail-prone states like Texas. If your state doesn’t, carefully inspect the car for damage, as hail can be more severe than it appears. For more on how insurance handles such natural damage, check “Does car insurance cover natural disasters with only liability?”

All of the following states issue title brands specifically for hail damage: Arizona, Florida, Idaho, Kansas, Kentucky, Louisiana, Maryland, Mississippi, Missouri, Montana, Nebraska, New Hampshire, Ohio, Oklahoma, Pennsylvania, South Carolina, Washington, West Virginia, Wisconsin, Wyoming, and Washington D.C.

How Branded Titles Affect Car Insurance Premiums and Coverage

Branded titles can significantly affect car insurance. And yes, you can insure a car that has a salvage title. However, you may not be able to buy comprehensive or collision coverage. Collision and comprehensive coverage are optional policies covering the cost of repairing your car after a collision or during non-accident-related events.

If your car has a hail damage title brand, for example, then your insurance company may refuse to provide comprehensive coverage. Comprehensive coverage would normally cover the cost of repairing damage to your car, but your insurer will claim they can’t separate the old damage from the new damage.

However, most insurance companies will happily provide liability coverage to autos with branded titles or salvage titles, allowing you to legally drive on the road and stay protected. This type of car insurance will also be significantly cheaper than full coverage insurance, which means a branded title car can save you hundreds or even thousands on car insurance.

Without collision and comprehensive coverage, however, your car will lack certain protections. You won’t be able to make an insurance claim if a tree falls on your car, for example, or if your vehicle is stolen. Chances are, you will have to take on some financial responsibility when doing repairs.

Talk to your insurance company or compare quotes online today to ensure you’re getting the best possible deal on branded title car insurance.

Read More: Allstate Auto Insurance Review

Title Washing: How It Alters a Car’s Branded Title History

States have different rules governing title brands. A car may qualify for a lemon title brand in one state but not another.

Because of these different rules, some dishonest car buyers will move cars between states to wipe away a title. This is called title washing.

Title washing can be tough to avoid, and damage may not appear on a standard vehicle history report when a buyer researches a potential sale. However, you may be able to spot title washing by doing an AutoCheck or CarFAX VIN Check, which tracks vehicle information between states.

Understanding the Different Types of Branded Titles and Their Impact on Insurance

This table helps clarify the differences between the various types of branded titles and their effects on insurance availability, coverage, and premium costs. Providing you a quick reference to understand the impact of each branded title type on their car insurance options.

Branded Titles and Their Impact on Car Insurance

It’s essential for car buyers to understand what’s a branded title on a car before making a purchase, as it can significantly affect the vehicle’s value and history. A branded title is assigned to a vehicle that has sustained significant damage and has been declared a total loss by an insurance company.

This can include vehicles with a salvage title, indicating that the cost to repair the vehicle exceeds its value. Once repaired and inspected, these vehicles may receive a rebuilt title, signaling that they are now roadworthy.

When it comes to insurance, many wonder, “Does branded title affect insurance?” and “Does salvage title affect insurance?”. The answer is yes; vehicles with branded or salvage titles typically face higher auto insurance premiums and limited coverage options.

For example, Geico’s and State Farm’s salvage title policies may offer coverage, but they often come with higher costs and specific restrictions. Insurers view these vehicles as higher risk due to their history of significant damage.

Specifically, “Will Geico insure a rebuilt title?”. Yes, Geico rebuilt title insurance is available, but it may come with caveats. Similarly, Geico salvage title insurance might be accessible, but like other insurers, Geico may impose higher premiums and less comprehensive coverage.

For those needing branded insurance, it’s essential to compare offerings from various companies to find the best coverage terms and rates.

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Understanding Branded Titles vs. Salvage Titles in Car Insurance

When it comes to buying a branded title car, there are several factors to consider. One of the main concerns is the difference between branded and salvage titles.

A branded title indicates that the vehicle has had some significant damage in the past, while a salvage title means the car was deemed a total loss by an insurance company. It’s important to note that is a branded title bad is subjective and depends on various factors such as the extent of damage and repairs done.

The next concern is about insuring these vehicles. The question, can you get insurance on a branded title, often arises. The answer is yes, but it can be challenging.

Some insurance companies, like State Farm, may provide coverage. So, does State Farm insure branded title cars? Yes, they do, but it’s always best to check with the company for specific policies. Similarly, Allstate rebuilt title cars can also be insured, but the coverage might be limited compared to standard vehicles.

Lastly, the type of coverage for these vehicles is another crucial aspect. Many wonder, can you put full coverage on a salvage car or can you get full coverage on a branded title car? While it’s possible, it’s not always guaranteed.

Full coverage might be more challenging to obtain for an insurance branded title car or when insuring a lemon title car due to the inherent risks associated with these vehicles. Always consult with your insurance provider to understand the specifics of what they cover.

Read More: State Farm Auto Insurance Review

Branded Title Auto Insurance: What You Need to Know Before Buying

The Risks of Branded Titles

Branded title vehicles present unique challenges for both buyers and insurers, particularly when it comes to securing comprehensive and collision coverage.

While liability insurance is typically available, the limitations and higher premiums associated with branded titles should be carefully considered before purchasing or insuring such vehicles. It’s essential to compare the best insurance providers and policies to ensure you’re getting the best coverage and rates available.

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