Salvaged Vehicles in Alabama

If you have totaled your car in an accident, or if it has been declared a total loss by the insurance company because of storm damage, you have probably received a salvage title for your vehicle. Once a salvage title has been issued, you cannot legally drive your vehicle on Alabama highways or have a valid license plate.

If you need to apply for a salvaged title, complete the Application for Salvage Certificate of Title (Form MVT 41-1) and return it to the:

Alabama Department of Revenue
Motor Vehicle Division ― Title Section
P.O. Box 327640
Montgomery, AL 36132

You have two options to consider for your salvaged vehicle:

  • You can sell it for parts or to be restored.
  • You can rebuild it yourself, obtain a rebuilt title, and drive it legally once again.

If you decide to keep the car and rebuild it, you must obtain a rebuilder's license and rebuild/restore the vehicle to its prior condition.

When you finish rebuilding it, you must have it inspected. This is to determine that no stolen parts were used to rebuild it and to ensure that your vehicle has been safely rebuilt. According to Alabama law, only a licensed rebuilder can apply for the inspection. The vehicle must be restored within Alabama only.

To apply for a rebuilder's license, contact:

Alabama Department of Revenue
License Tax Section
P.O. Box 327550
Montgomery, AL 36132
Phone: (334) 353-7827

You will be provided with a license application and instructions that will explain the requirements and fees. State law requires that you post a $10,000 surety bond to become licensed. A surety bond is a contract guaranteeing that you will rebuild the vehicle.

Once you have met the rebuilder's license requirements, you must include the following documents with your application for a salvage vehicle inspection:

  • Application for Inspection of a Salvage Vehicle (INV 26-25)
  • Remittance Advice (Form INV 31-1)
  • The original salvage title properly assigned to the owner/licensed rebuilder
  • Copy of rebuilder's license
  • $90 fee, payable by certified funds (application fee of $75 plus title fee of $15)

You'll also need the following Bill of Sale forms:

  • Notarized Bills of Sale for all major component parts. The forms must list the manufacturer's vehicle identification number of the vehicle from which the parts were removed.
  • Bills of Sale for all minor component parts. Notarization shall not be required unless the component part contains or should contain the manufacturer's vehicle identification number.

Mail the above documentation to:

Department of Revenue
Automobile Inspection Unit
P.O. Box 327641
Montgomery, Alabama 36132

When your vehicle has passed inspection, you will be issued a rebuilt license plate that will be permanently attached to the vehicle. You will be given a rebuilt title that allows you to drive legally on the highways.

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