Where do insurance companies sell damaged cars?

Asked by: London Macejkovic I  |  Last update: September 29, 2025
Score: 4.7/5 (5 votes)

Insurance companies typically sell totaled vehicles to auto salvage yards or rebuilders. Some companies will sell the car to private individuals if they agree to pay for the repairs.

Where do insurance companies send totaled cars?

Typically, the insurance company will sell your car to a salvage yard at an auction. So if you want to keep your vehicle, they will deduct this amount from your ACV settlement. When considering whether or not to keep your totaled vehicle, keep in mind that there's a reason the insurance company didn't want to fix it.

What do insurance companies do with cars?

Depending on your coverages, your car insurance company can help pay for vehicle repairs, medical expenses, and damages or injuries you cause others while driving. Keep in mind that basic car insurance doesn't cover maintenance or general wear and tear.

Where do damaged cars go?

Some vehicles, after the insurer has determined that it can't be fixed, will be sent to an auction, because the parts still have value and can be salvaged or sold, Crossen said. Some vehicles may go to a junkyard, where people take the wheels or tires or body parts of the vehicle.

What is the best website to buy salvage cars?

Salvage Bid

Salvage Bid is a large online auction marketplace dedicated to used, salvaged, and repairable vehicles. Every day, the platform offers more than 200,000 salvage & repairable vehicles for sale, allowing you to buy and sell vehicles with clean and salvage titles without the need for a dealer's license.

Salvage Value of your Car. Fix it or Sell it?

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How do I buy back a salvage car?

What Are the Steps to Buying Back a Totaled Car?
  1. Get repair estimates. Get started by securing estimates for needed repairs.
  2. Find out the value of your car. Determine your car's book value.
  3. Call your lender. ...
  4. Let the insurer know your plans. ...
  5. Fill out the paperwork.

Why are salvage cars cheaper?

Salvage vehicles are usually much cheaper because of their title status. If the damage was solely cosmetic and you don't care about looks, the car may still be otherwise reliable. But you should get the car thoroughly checked out by a mechanic to ensure there aren't any potential safety issues.

Can you buy salvage cars from insurance companies?

Insurance companies typically sell totaled vehicles to auto salvage yards or rebuilders. Some companies will sell the car to private individuals if they agree to pay for the repairs. Why buy clear title vehicles from an insurance company? Salvage vehicles sold by an insurance company comes at a relatively low price.

Who pays the most for damaged cars?

CarBuyerUSA is your “Damaged Vehicle” headquarters. No other Car Buying Company pays more for damaged cars. CarBuyerUSA will buy anything from a rollover to a Range Rover and has paid up to $35,000 for wrecked or inoperable vehicles – including Jaguars and Maserati's.

What do body shops do with totaled cars?

Yes, a body shop can repair a totaled vehicle if the insurance company deems the repair cost less than the car's value before the accident. The shop will assess the damage and provide an estimate to the insurance provider.

What happens when your car is totaled but still drivable?

Rebuilt/Reconstructed Title: Once a salvage vehicle has been repaired and inspected, the California Department of Motor Vehicles (DMV) will issue a "rebuilt" or "reconstructed" title for the vehicle. Once you obtain this, you can legally drive the vehicle.

What website do insurance companies use to value cars?

You can also research the suggested value of your car. Listing services such as Kelley Blue Book and Edmunds are respected in the car insurance industry. You can also explore businesses like Cars.com and Autotrader. However, remember that the advertised prices are only asking prices.

Which is better, replacement cost or actual cash value?

It depends on your budget, your insurer, and your personal preference. If you're offered a choice, actual cash value may be a more affordable option, but replacement cost value typically offers more coverage. You'll need to decide if you prefer more coverage for a higher premium or less coverage for a lower premium.

Can you ask for more money when your car is totaled?

In some cases, you may get more insurance money for a totaled car than for repairs. In addition, it is possible to negotiate a higher settlement by providing evidence that your car was worth more than the insurance company's initial valuation.

How do you transport a totaled car?

The transportation of salvage cars, which are often inoperable, requires the use of a forklift or flatbed truck, along with equipment such as winches. This specialized handling and use of equipment is crucial for avoiding further damage and ensuring the safe transportation of these vehicles.

How much do insurance companies sell totaled cars for?

A typical insurance payout for a totaled car will be for its actual cash value. It's generally determined by factors such as year, make, model and mileage. Simply put, it's what your car could have been reasonably sold for before the damages.

How can I get the most money for my wrecked car?

Here are a few strategies for maximizing payout for a totaled car:
  1. Conduct independent Research on the Vehicle's Worth. Get an independent valuation of your vehicle before accepting any offer from the insurer. ...
  2. Provide Supporting Documentation. ...
  3. Negotiate With the Insurance Company.

What is the most expensive part of a car to repair?

1. The engine. The most expensive part to repair is the car engine. Replacement of a car engine can cost upwards of $10,000 in a small car and even more in a truck or SUV.

How can I get money out of a broken car?

There's a chance someone is looking to pay cash for broken cars like yours, whether for parts or to fix it up and drive it. Sell it to a junkyard or scrap yard. If you decide to sell a car for scrap, you'll be paid cash based on its value as scrap metal. It's weighed and you are paid a set price per ton.

Can I trade in a totaled car?

Can You Trade In A Totaled Car To A Dealership? Many dealerships would be very reluctant to accept a vehicle with a salvage title. If they do accept it, chances are they'll provide an extremely low trade-in value for the car, since they cannot easily put it back on the lot to sell to someone else.

Can you insure a car that has been totaled?

If you want to insure a vehicle that's been declared a total loss, you'll first need to make sure it has a rebuilt title status — and even then, you may have limited coverage options.

Is it dumb to buy a salvage title car?

Perhaps the biggest risk of buying a car with a salvage title is safety. These vehicles have often sustained severe structural damage in an accident, the extent of which you may never know. The repair shop may have taken shortcuts or used cheaper parts to fix the vehicle. Also, some damage may not be immediately known.

Will State Farm insure a salvage title?

However, you wouldn't be able to insure a salvage title vehicle through State Farm—or any major insurance provider, for that matter—because these vehicles are deemed unsafe for the road in their current condition, making them illegal to drive.

Is a rebuilt title bad for insurance?

It can be challenging to obtain comprehensive insurance coverage for rebuilt title vehicles, and if full coverage is available, you'll usually pay higher premiums. Experts estimate that rates can be up to 20% to 40% higher than for clean title vehicles.