A rebuilt title is a title issued on a salvage car after it has been repaired, passed an inspection, and is considered legally road worthy. Cars suffering major damage such as flood or collision damage are issued a salvage license and can be sold for parts or to be restored, often by insurance companies on “total loss” vehicles. Once a restored vehicle has passed an inspection, it is issued a rebuilt title and can be used like a normal car. Consumers can save considerable money either by purchasing a vehicle with a rebuilt title or restoring a salvage vehicle themselves. The trade-off is that it can be difficult to get insurance on rebuilt vehicles, especially coverage for physical damage.
For more info, see Buying a Salvage Title: Facts to be Aware Of