My dad owns a 1992 Firebird that he (supposedly) totaled last year. Here’s the story, there was a really bad storm, and his boss demanded that he was not only at his job but on time. So my dad rushed on his way to work, and hydroplaned on a back road that is prone to flooding. He got it towed back to the house and later that day he filed a report to the insurance agency that it was totaled. He got the money for the totaled car, and he used the money to drain the engine, change the oil, put in new spark plugs, get new carpet, etc. The car now runs, but it has 274,000 miles, and the insurance company told him he can never get his full coverage reinstated. I beg to differ, seeing as how I’m going to inherit this car soon, and I want to replace the old worn-out motor anyways, and with a new motor this won’t even be the same car.

So here is my question:
If I get the engine replaced with a crate engine with 0 miles, do you think that the insurance company will reinstate full coverage?

The vehicle is still a salvaged vehicle – as it has a salvaged title – regardless of if the engine was replaced. It’s up to each insurance companies own discretion if they want to offer full coverage. Again, just because it got a new engine – does NOT change the fact that the vehicle is still a salvaged vehicle and holds a salvaged title – the DMV will not change the fact that it holds a salvaged title.