What Is A Salvage Car Auction?

Basically most of the vehicles brought up for sale at a salvage car auction are from insurance claims. When a car is involved in an accident, the insurance company takes a look at the damage to the vehicle and other factors such as the age of the car and the Kelly Blue Book value. If the estimated cost of repairs to the vehicle is more than the value the insurance company assigns to it, then the vehicle is considered totaled and the insurance company buys the vehicle and salvages it.

The interesting point to all this is that insurance companies then sell these cars at a salvage car auction and these cars can be bought very inexpensively. What makes this such a great deal is that, while most of the cars that come thru a salvage car auction are destroyed beyond repair, some vehicles with very minor damage are considered totaled due to the age of the vehicle or the expense of a particular repair. Many times a summer hailstorm near a new car lot will ... more.

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