What is an insurance auto auction?
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UPDATED: Jun 14, 2019
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An insurance auto auction is where consumers and businesses can purchase vehicles for a very low price. According to Insurance Auto Auction, this happens in cases where insurance companies have deemed them unsalvageable. This can include stolen and damaged vehicles or cars involved in collisions.
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Most car insurance companies base their decisions to approve or deny an insurance repair claim according to the amount of damage inflicted on the automobile. If the damage is too great or costs more than the value of the vehicle, your claim is denied and the car will be listed as a total loss.
If this occurs, the vehicle is towed to a facility and placed in an insurance auction database where it is sold to the highest bidder. Insurance auto auctions help you find vehicles that you can purchase, fix, and resell.
You can also remove the non-damaged parts and sell them separately. Either way, the amount you pay for the vehicle will be so low that you will definitely see a profit.
The Insurance Auto Auction Bidding Process
There are usually three ways to participate in an insurance auto auction. They are designed to expedite the process and keep things moving smoothly. Before you decide on your method, it is important that you understand the difference between them.
Live – All across the Nation, there are licensed insurance auto auction facilities that conduct daily auctions. Complete your research and find the place closest to you. You can even inspect the vehicles prior to the auction to ensure the inventory meets your standards. The preview dates are provided by the facilitator. Once you arrive, bid on the vehicle and if you submit the highest bid, you win the car.
Online – This option is great for people who do not have the time to visit an auction in person. You will be required to log onto the site you choose and set-up an account. From there, you can review the types of vehicles, numbers of vehicles, times and dates of the auction and place your bid.
Online insurance auto auction bidding requires a valid credit card or checking account and you must be aware of the status of the vehicles and verify that they are still available. If the vehicle you are interested in has a time next to it, it is available. If the status reads closed, it is too late.
Proxy – A proxy bidder represents you and makes bids according to your specifications. They are required to report to the facility, show their identification, and confirm they have permission to bid on your behalf. They follow the exact same procedures as if they were personally responsible, but they must confirm the final bid with you before it is approved.
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Insurance Auto Auction Locations
One of the largest vendors, Insurance Auto Auctions, has locations throughout the United States. Simply log onto the website and search for your state. Some states have more than one location, like California, Texas, North Carolina, and Louisiana. There are more locations in the eastern region of the country. This shows how popular auto insurance auctions have become over the years and word is spreading quickly.
Searching for a local insurance auto auction is not as challenging as you might think, but the cars go fast. If you are interested in participating, you must register, either online or in-person as soon as possible. Remember, there will be a large number of people bidding against you so it is imperative that you budget your money accordingly to ensure you can compete with the masses.
Other Types of Vehicles Available at Insurance Auto Auctions
In addition to automobiles, insurance auto auctions also provide you with the opportunity to bid on motorcycles, recreational vehicles, commercial vehicles, and construction equipment. This is why you will see large corporations bidding during the auctions.
Rather than purchasing new or used equipment, large companies and corporations can save thousands of dollars by working with insurance auto auctions.
Most times, they pre-arrange their orders if there are fleets involved. For example, if a large company is looking for 10 to 20 Bobcats or backhoes, they will contact the auction facility to arrange a private inspection, on-site.
This is also true for salvage companies that sell parts only. These types of companies will be your biggest competition. It may be easier to find an insurance auto auction that frequently offers automobiles, rather than a variety of vehicles to help even the odds.
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