Flash Auctions
Try out our new feature. Be fast. Save Big!

Can I Insure Cars Bought from Auctions? 

Date: 10/21/2015 |Category: Car Auctions, Car Insurance

People often assume that it is very difficult to get insurance coverage for cars bought at auction. This is not entirely true. However, there are certainly some things you will need to consider when you are buying from car auctions when it comes to insurance. Dispel the myths so you know what you can expect.

Some Vehicles Are Easy to Insure

Some of the car auctions out there have new and nearly new vehicles, as well as used vehicles that are in decent shape. They do not need to have any work done to them, and you can register and insure them almost as soon as you buy them. It is easy to get liability insurance and full coverage for these vehicles through any insurance company out there. When you are buying these types of vehicles, you have nothing to worry about when it comes to getting insurance. With other vehicles, there could be a bit more involved with getting insurance, though.

Some Vehicles Take a Bit of Work

Many of the vehicles that are available through car auctions have what are known as salvage titles. This means that they were declared a loss by the last owner’s insurance company, and as they are right now, you can’t get them on the road and you can’t get insurance for them. This is likely what people are talking about when it comes to not being able to get insurance. However, that doesn’t mean it is a lost cause. When you rebuild the vehicle, as long as it doesn’t have a title that states it can only be sold for parts, you will be able to get liability insurance.

The tricky part will come when you are trying to get more coverage for the vehicle. Insurance companies are notoriously bad at determining the value of rebuilt vehicles, and some simply aren’t willing to try. They don’t know what to charge you if they don’t know the value of the vehicle. Some insurance companies, such as Progressive, are able to provide more coverage for these rebuilt vehicles.

The premiums should be reasonable. Some might try to charge more for these vehicles, but that doesn’t make sense. The value of the vehicle is lower, and the premiums should reflect this. Make sure you aren’t paying too much for the vehicle.

Know What You Are Buying and Research Insurance Companies

When you are buying from car auctions, you need to know everything that’s wrong with the vehicle before you buy. This will allow you to find out what you need to do in terms of repairs, as well as how difficult it might be to get comprehensive and collision coverage for the vehicle. As long as you know what you are buying, though, you will be better prepared for finding insurance.

In fact, many buyers find that checking with insurance companies even before you buy a vehicle is a good idea. Start talking with insurance companies about their policies when it comes to insuring rebuilt vehicles. This way, you can do your preliminary insurance shopping and research even before you buy the vehicle.

As you can see, there is some truth to the fact that getting insurance for some vehicles from car auctions can be difficult. However, it is not impossible, as long as you do your research.

Explore our Vehicle Auctions, as well as finding more information about How These Auctions Work.

Auto Auction Specialist Used car expert The largest salvage & insurance vehicle auction marketplace online.
Bid on over 200,000 vehicles for sale right now.

Ready to get started?

Register a free user account and start bidding on your dream car right now!

Sign up for free
Request a
We will call you within 1 min
We speak your language:
English, Spanish, Portugeese and Russian
< Back
  • User Registration
    • What are the rules regarding new customers and customers not in good standing?
    • Can I just buy one car?
    • I do not have a dealer license; can I bid or buy a car?
    • What information do I need to provide to register?
    • Do I have to pay to register?
    • Do I need to register to bid?
  • Auction Process
    • Do you offer live bidding?
    • What is the difference between, “auction” car, and a “buy now” car?
    • What is a Reserve Price?
    • What does the bid amount include?
    • How does the auction process work?
  • Deposits and Pre-Bidding
    • Is the security deposit refundable?
    • How do international customers make a deposit in their account?
    • How does the security deposit process work?
    • Can I cancel a bid?
    • Can I inspect vehicles prior to auction?
    • Is automatic bidding or pre-bidding available?
    • What is the total bidding amount?
    • What is a bid in active status?
    • What is a bid in pending status?
    • What is the best way to win an auction?
    • How do I search for a car available at auction?
    • How does the auction process work?
  • Post-Auction and Payments
    • What does a customer need to do to get the title to a vehicle?
    • How do I pick up the car I purchased?
    • Are there storage fees if I cannot pick up my vehicle immediately?
    • Do you Issue Temporary Plates?
    • Can I pay in cash?
    • Are there late payment penalties?
    • What are the payment terms?
    • How do I pay for an auction?
    • What if I fail to may a payment as required?
    • When is the balance due on a purchase?
    • When will I be notified of the results of the auction?
    • Bidding has ended. Is my bid the highest?
    • Why did I receive notice after bidding ended that my bid is no longer the highest?
  • Shipping and Delivery
    • How will it be mailed to me?
    • When will I receive the title?
    • Can I have the title mailed to an address/name different from the address/name on my account?
    • I have an agent working on my behalf can this person pick up my vehicle?
    • Do you offer delivery?
    • When can I pick up a car I have won at auction?
  • Understanding Salvage Titles
    • What is NMVTIS and how is it used?
    • Understanding the salvage title/rebuilt title distinction
    • What are the different types of titles a vehicle may have?
    • I received a different type of title than the one in the description. I received an equivalent title from a different state. Why?