Auto insurance auctions allow the sale of vehicles that have been branded as total losses. These vehicles may have needed to be salvaged due to flood damage, theft and stripping, or collisions. Much of the time, these vehicles have been returned to good working order and are sold primarily through auto insurance auction companies. Since there are more than 3.5 million vehicles deemed total losses in the United States each year, there are plenty of vehicles to choose from through the auction process. The top auto insurance auction companies include Insurance Auto Auctions, Inc., Salvage World, and Global Insurance Auction. Read on to discover more about auto insurance auctions.
Auto insurance auction companies work in partnership with a variety of sellers, including dealerships, rental car companies, insurance companies, and fleet lease companies.
While some auto insurance auctions are live, many companies offer a hybrid model of bidding. Customers can bid on vehicles through live online auctions, preliminary bidding, and internet bidding.
Brokers are licensed individuals who help business and individuals purchase vehicles from auto insurance auctions. They provide assistance with vehicle inspection, the bidding process, and shipping purchased vehicles.
Buyers can choose to bid on any available vehicle, regardless of location. However, they need to take into account that buyers are responsible for the shipping of their purchased vehicles. That said, vehicles can be shipped to both domestic and international destinations.
The seller generally has final approval on the sale of the vehicle. There may be conflicting bids on a vehicle, or an individual has outbid the highest pre-bid through a live auction.
There are a variety of fees charged to buyers through the auto insurance auction process, including bidding fees, security deposits, paperwork fees, shipping, late payment, and storage. It’s essential to go through the fee structure before committing to bidding on vehicles.
Some auto insurance auction companies require funds to be in an account before bidding begins. If this is not the case, companies usually require that payment is made within two business days of the close of the auction.
Company guidelines differ regarding the refusal to pay. If the vehicle has not been purchased, some auto insurance auctions allow bidders to change their bids or reduce their maximum bids. Once the vehicle has been purchased on a buyer’s behalf, however, it’s difficult to get out of paying, and hundreds of dollars - or more - of associated fees can be charged.