PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How and why would someone buy a damaged car from an insurance company?
Why would someone buy a damaged car from an insurance company? My brother said he bought a beat-up car this weekend that a local insurance company sold him. I get that it was cheap, but it seems like a bad idea.
Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Buying a
salvaged vehicle
isn’t for everyone, but if you are handy with cars and have a little time on your hands, it can be a financially savvy move!When cars are deemed totaled by a
car insurance
company, a salvaged title is issued and the vehicles are sold at auction. By auctioning the vehicle, insurance companies can make some of their money backYou’re right—it can be dangerous to drive a salvaged car, which is why it is illegal to have them on the road. They can only be driven once they pass all state requirements and receive a rebuilt title.
Once he has the rebuilt title, your brother can apply for
liability insurance
. Most insurers do not provide collision coverage
for salvaged cars.When your brother is ready to find insurance for his salvaged car, tell him to give
Jerry
a try! Jerry pulls quotes from up to 50 top insurers, including those that work with salvaged vehicles, for you to compare (and for free!).View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
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.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
