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How do I buy a wrecked car from an insurance company?
I am looking for a new fix-it-up project, and think I want to renovate a totaled car. Can I buy a wrecked car from an insurance company?
Nick Kunze · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Buying a wrecked car from an insurance company is an affordable way to get a vehicle, as long as you’re willing to put some time and money into maintenance.
A car insurance company may own the vehicle because they gave the policy holder
an insurance payout
instead of repairing the car. This is typically the case when the actual cash value of the car is less than the cost of repairs. While some vehicles may be beyond repair, you may find others at a bargain price.These totaled cars are usually sold at auto auctions. Auto auctions are a great place to find wrecked, abandoned, or repossessed vehicles on the cheap. However, you either need to get the vehicle at a rock-bottom price or have enough mechanical knowledge to know if the car is indeed repairable.
Totaled cars do not require car insurance, but your state will require you to get a
salvage title
. Keep in mind that even after you repair the car, one of the most difficult aspects is to find an insurance company that will offer coverage on a salvage title car. As a result, you will have to pass a safety inspection to get a rebuilt title to legally drive the car in most cases.If you fix up the car and need insurance, that’s when
Jerry
can help. Sign up in minutes to compare quotes from over 45 different insurers so you always get the best rate for your rebuilt car.View full answer
- Gregory R.
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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.
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