When you hear the term "car brand", you most likely begin to think of your favourite vehicle manufacturers. However, in regard to used vehicles, there's another type of "car brand" that you should be aware of — the provincial transportation ministry car brand.

A provincial transportation ministry car brand is used to indicate the level of damage a vehicle has accumulated after a severe car accident or collision. The car brand can be found on your vehicle ownership.

There are a handful of different provincial transportation ministry car brands, but today's article will focus on car rebuilt titles and salvage titles.

Continue reading to learn the difference between getting a car rebuilt title and a salvage title for a vehicle in Canada.

Salvage vs rebuilt cars — what's the difference?

Here are the primary differences between salvage titles and rebuilt titles in Canada:

What does salvage title mean regarding used vehicles in Canada?

If you get into a severe auto accident or collision, your auto insurance company may write-off your vehicle. A written-off car is a vehicle that is simply not worth repairing due to the expense of the required modifications (the cost of the repairs is higher than the cost of the vehicle).

If your vehicle is written-off, it will either be deemed "irreparable" or "salvage". If your vehicle is deemed "irreparable", it can never be legally operated again. But, if your vehicle is deemed "salvage", you will get a salvage title meaning that it can be driven if it is repaired and inspected by a professional mechanic.

However, you don't need to repair your vehicle if you don’t intend to drive it…

Vehicle owners can part out their salvage car meaning that they can sell individual parts to private buyers. 

So, instead of putting additional money into your salvage vehicle, you can potentially use it to generate some income.

What does rebuilt title mean regarding used vehicles in Canada?

A car rebuilt title is a provincial transportation ministry car brand that indicates that a vehicle was previously salvaged. Unlike vehicles with salvage titles, vehicles with rebuilt titles are legally allowed to operate on Canadian roadways. 

To get a rebuilt title, the owner needs to have their written-off vehicle repaired and inspected by a professional mechanic. Getting the car repaired and inspected by a professional mechanic ensures that the previously-damaged vehicle meets the respective Ministry of Transportation's safety standards.

In order to sell a vehicle with a car rebuilt title, the owner of the vehicle needs to supply all potential buyers with the following information:

• Documentation related to the accident that caused the damage
• Proof of payment for the inspection, repairs, etc. (be sure to ask your mechanic for a receipt).
• Any photos or video evidence of the damage

All in all, the difference between a car rebuilt title and a salvage title is quite simple: salvage titles are for written-off vehicles that can be driven if they are inspected and repaired by a mechanic. On the other hand, rebuilt titles are for vehicles that used to be salvage and are now considered roadworthy.

Salvage title vs rebuilt title — which is the better option for drivers in Canada?

If you are thinking about buying a used car in Canada, you may be tempted to purchase a vehicle with a salvage or rebuilt title. Cars with salvage or rebuilt titles tend to be cheaper, making them a solid option for drivers that are on a tight budget.

That being said, drivers should note that buying a vehicle with a salvage or car rebuilt title can be a risky decision.

Vehicles with salvage titles require a lot of time and money before they are considered roadworthy. 

Repairing a written-off vehicle can cost several thousands of dollars, and unfortunately, it will likely be prone to additional issues in the future. So, not only will you have to pay for the vehicle, but you'll also have to cover the cost of current and future repairs. However, buying a salvage vehicle can be profitable if you plan to sell the vehicle for parts.

Vehicles with rebuilt titles can be quite a hassle as well. For starters, cars with rebuilt titles are quite prone to internal issues (problems related to the engine, brakes, etc.). So if you purchase a vehicle with a rebuilt title, expect to visit your mechanic more often in the not-so-distant future. 

Additionally, vehicles with rebuilt titles are often viewed as "high-risk" vehicles, which means that you'll need to get high-risk auto insurance. High-risk auto insurance is significantly more expensive than standard auto insurance, so you can expect to pay more for coverage in the long run.

At the end of the day, purchasing a vehicle with a rebuilt title is technically the better option for most drivers. Still, neither option is as safe or reliable as vehicles with no accident history.

How to get car insurance quotes for a car with a rebuilt title

Getting insurance for an automobile with a rebuilt title can be quite tricky, but it's far from impossible.

The easiest way to get competitive quotes for any type of auto insurance is by teaming up with a reputable online insurance brokerage like Surex.

Online insurance brokerages make it incredibly easy to compare top-notch quotes from Canada's best auto insurance companies with their one-stop-shop model. 

Instead of spending days calling or emailing insurance providers, you can save time, energy and money by teaming up with an insurance broker.

Save up to 25% on auto insurance when you bundle your policies with Surex

If you're like most people, you're probably tired of overpaying for coverage. Whether you're about to buy your first car or are thinking about purchasing a vehicle with a rebuilt title, our team at Surex can help you find the coverage that best suits your needs. 

Within ten short minutes, your personal Surex insurance advisor can supply you with quotes from companies like Aviva, Intact, Economical and more!

So, what are you waiting for? Contact Surex today to learn how we can help you save as much as 25% on your coverage!