Q:

What are insurance salvage auto auctions?

A:

Quick Answer

Insurance salvage auto auctions are auction sales of vehicles that have been damaged and may be drivable, lightly damaged or repairable. Insurance Auto Auctions is one of the largest companies in the insurance auto auction business, with over 150 auction centers in the United States.

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Full Answer

Insurance salvage auto auctions are one of several ways that insurance companies recoup the costs of payouts to clients whose vehicles have been totaled, damaged in an accident or stolen and recovered. Depending on the severity of the damage, the insurance company makes a decision to sell a vehicle to a scrap yard or, if there is enough value through salvageable parts, put the vehicle up for sale in an auction. Many vehicles are in drivable condition but may need repairs. Public insurance auctions are held at locations across the United States, but some are for auto dealers only.

Bidding at auctions is typically done in person. However, some auction companies offer online bidding. Online auction bidding is run simultaneously with the bidding inside the auction house. If a bidder wins through an online bid, it may be up to the winner to arrange for transportation of the vehicle, though some auction houses have an in-house or contracted delivery company that handles the shipping.

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