car3

How to Insure a Car Bought at Auction

Finance

Purchasing a new car is something that many people across the United States do. Cars are needed for a variety of reasons. Some of these include showing off your financial status, going back and forth to work, and also running errands with your family. You can purchase an automobile at various places, including car dealerships, internet websites, and car auctions.

Car auctions allow people to go and bid on vehicles, no matter the condition they are in. Whether they are new or old, car auctions have become the go-to areas for people to purchase vehicles. When you purchase a car through an auction, you need to know how to get your auction car insured. You’ll have to work with an insurance company to find out what coverages are needed for such a vehicle. This can include comprehensive coverage, personal injury protection, collision coverage, property damage liability, comprehensive insurance, and party liability coverage. What we’ll focus on today is how to ensure a car is bought at an auction.

It’s easier to insure newer vehicles.

img

When you go to an auto auction you are going to come across a wide variety of vehicles. Some of the vehicles are new, while others are older. More than likely, you’re going to drift over to a newer vehicle. It seems as consumers, we’re hardwired to want to choose the best-looking option when it comes to vehicles. Even at the discounted prices, these cars are priced at in a car auction, you want to have peace of mind that when you purchase the car you’ll be able to get car insurance for it.

When you see those vehicles which are new, nearly new, or even well-functioning used vehicles, there’s a good chance your auto insurance rate won’t be extremely high. Also, you’ll be able to get car insurance coverage like full coverage and also liability insurance. The older the auction cars, there’s the chance that your insurance can get a bit more involved.

Do your homework.

Start the process of auction car hunting by doing your homework. Most auto auction websites provide an internet database to search through. Utilize this to find more information about the vehicles which you might be interested in bidding on. This will provide you with some peace of mind on the state of the vehicles which will be available. Once you check the conditions of the vehicles, this will also help with your car insurance coverage research. For example, check the third party car insurance options which might be available.

You’ll want to know what your coverage options will be if the only available auction cars are older models. It also helps to know if insurance companies and agencies will even offer a car insurance policy for a car that you’d like to purchase. Doing your homework into auction cars and insurance companies before you head to an auction lot can help save you a lot of time and worry.

Vehicles with salvage titles can’t be insured.

img

Many auction vehicles come with salvage titles. The definition of a salvaged vehicle is a vehicle that has been declared a loss by the previous owner’s insurance company. The damaged car has to be repaired. Otherwise, it will stay in this salvaged state. If you rebuild the vehicle and get it to a better functioning state, then you’ll be able to get the vehicle insured. Unfortunately, sometimes it’s difficult for insurance companies to determine the value of such vehicles.

Be Early

You need to get to an auto auction as early as you can. This will allow you to locate those vehicles that you want. You’ll also be able to find those automobiles that won’t provide you with headaches when purchasing insurance. Being the “early bird” at an auto auction will ensure that you are in the best position to seek out car insurance for auction cars.