How do you buy cars from insurance auctions?

I need a new car. I heard that you can buy cheap cars from insurance auctions. How does that work?

Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“You’re right—insurance auctions are a great way to buy a cheap car! Here’s how it works.
When a vehicle is totaled and a
car insurance company
has to pay out a claim, they also take ownership of the vehicle. To gain back a portion of what they lost, insurers put the car up for auction.
You can buy cars from insurance auctions online or in person.
  • Most salvage vehicle auctions take place online.
  • Other vehicle auctions are held in person. You can search Google to find events in your area. However, make sure the auctions are open to the public, as some require a dealer or business license to bid.
If you plan to participate in an auction but do not know a lot about cars, you may want to bring along someone who does. A mechanic would be an ideal candidate since you’ll have to assess the car based on sight alone—you are not able to test drive auction vehicles.
And that’s just one drawback of auctions. While you can theoretically get a good deal, you might also get a
. Plus, vehicles with salvage titles are more difficult to insure. So be sure to do your research before attending an auction.
When it comes time to insure your new car, get cheap quotes fast with the
app. Skip the phone calls and long forms—Jerry will gather personalized rates from up to 50 top name-brand insurance companies in seconds and deliver affordable quotes straight to your phone for free.”
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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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