Not to derail, but I just bought a used car with one of my daughters last weekend. To help build her credit up, we financed despite the option to purchase outright.
There were a lot of vehicles that were "branded" title cars. Likely to not have any issues for the remaining life of the car, but there is that uncertainty that devalues the vehicle. It appears that lenders often don't loan money on "branded" title cars so this creates a cash only sale, usually. After speaking with my insurance company, the industry usually tacks on roughly 20% on to the premium for these vehicles as well. Also, to get full coverage insurance (I know, poor guy mentality) there would need to be documentation of the damage and then the repair work to show the process. This seemed like too many unknowns for me so we elected a "clean" title car.
In my digging, a "salvage" title is issued for a vehicle that is not roadworthy, usually deemed a parts-only from then on and may be similar to a sled but I'm not sure. A "branded" or "rebuilt" title is one that has gone through a rebuilding process and inspected to be roadworthy, not sure how this works for sleds. And a "clean" title is one that has not had any major damage reported (being totaled out). These titles are printed on status specific colored paper for easy identification at the DMV.
I second the opinion that your insurance company would be taking steps to show your sled will have a damaged title, but what exactly that looks like for a sled, I don't know. I would imagine your resale value will be affected since you aren't typically a "ride it till it dies" guy.