How do I buy a totaled car from an insurance company?
I'm considering buying a totaled car from an insurance company because they are pretty cheap. I have the money to turn a project around, but how do I go about buying these totaled cars?
Reviewed by Shannon Martin, Licensed Insurance Agent.
Generally, insurance companies will not sell totaled cars directly to customers. Instead, they partner with auction companies that set bids for totaled and impounded cars.
To find one of these auctions:
Contact a local insurance agent
Call a local tow yard
Check your local paper
Look online
Before you buy, be sure to research your state’s salvage and total loss licensing requirements.
Keep in mind that you cannot drive a car with a salvage title. In order to legally drive the vehicle, you’ll have to first get a rebuilt title by:
Making all necessary repairs to the car
Taking the rebuilt car in for a thorough safety inspection
When it comes to insurance, not all insurance companies are willing to provide coverage on rebuilt cars, so you will probably need to compare quotes from a variety of providers. You can easily do this when you sign up with
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.