August 14, 2018
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August 03, 2018
If you’re in the market for a used car, you’ll need to know that insurance companies auction cars off at designated auto auctions.
Insurance auto auctions usually handle cars that are considered a total loss, meaning that they’ve had collision damage, hail damage, flood, fire, vandalism or theft recovery damage that adds up to more than the car’s blue book value. Bear in mind, though, that that doesn’t always mean that the car is a total wreck. Especially in cases of flood damage, an insurance adjuster may look at a few cars on a dealer’s lot and then declare every car in the entire lot to be a total loss. Also, considering the high price of body work and inflated insurance estimates, it may not take much body damage at all to call an older model car or truck a total loss (considering its lower book value). As for hail damage…there are PLENTY of cars out there that run and drive fine but are covered with hail dings that don’t do anything more than affect the car’s looks! A hail damaged car can present a great deal for someone looking for a used car at an insurance auction.
Sometimes, though, a car or truck can have body damage, frame damage, electrical issues, steering problems, brake problems, ABS or airbag problems or other things that can make it unsafe or generally unfeasible to rebuild. In these cases, a totaled car at an insurance auto auction can be a great deal for someone needing good usable parts for a project.
You can often place preliminary bids and establish your top-dollar bid on an insurance car auction before the virtual sale begins. However, if your car comes in under your top-dollar bid, you don’t pay that full amount – you only pay the top bid on the car itself. In other words, if your top bid is $4200 and the car you’re looking at comes in at $3000, you only pay $3000 and not the full $4200.
So if you’re looking for a car that’s got cosmetic damage but is still good mechanically, a car that has more significant damage but is still rebuildable, or a car that’s only good for parts, an insurance auto auction may be the way to go. Sedans, luxury cars, exotics, trucks, SUV’s, foreign or domestic – we can help you get into an insurance-auction car for thousands below blue book value.