FAQ

How to buy salvage cars direct from insurance companies

Buying cars from insurance companies allows drivers on a budget to get a vehicle at an affordable price. however, vehicles owned by insurance providers are generally totaled by previous owners. Often these cars end up being sold at auto auctions rather than through dealerships and other traditional routes.

what is a salvage vehicle?

A vehicle receives a salvage title instead of the regular title when the insurance company declares it a total loss. This occurs when the vehicle is badly damaged and needs repairs that exceed the total loss threshold. Each state uses its own total loss threshold, which is measured as a percentage of the vehicle’s original value.

Reading: How to buy salvage cars direct from insurance companies

With a salvage title, the car does not have the same value as an identical model without a salvage title. This type of title serves as a red flag to buyers and insurance companies that the car has previously been damaged. Many wrecked vehicles could technically be repaired, but it doesn’t make financial sense for the insurance company to do so based on the value of the car.

If someone buys the salvage car, they won’t be able to get full insurance coverage. vehicles that have not been totaled have “clean titles”.

where can I buy a salvage vehicle?

Auto Insurance 101 points out that most insurance companies do not offer direct auto sales. instead, they put salvage vehicles up for sale through auto auctions, where you’ll also find abandoned, seized, or repossessed cars available for purchase. Several companies, including Salvage Direct, host car auctions throughout the United States. You can call tow trucks, check the newspaper, or search online for auto auctions in your area.

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Usually, you can get information about available vehicles before an auction occurs. The detailed details provided on online auto auction sites offer as much information as you would get from viewing the vehicle for yourself, including but not limited to:

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