Insurance salvage auto auctions are like a unknown and uncharted territory to most. While you can get some excellent deals there, you need to know how to properly use them to you advantage or you could end up getting burned. Use these FAQs as a guideline before even thinking about going to one.

1. What is a salvage auto auction? An insurance auction is basically a regular car auction that only sells vehicles that insurance companies have labeled as salvaged.

2. What are salvaged cars? Salvaged cars are those that have been in an accident, flood or fire and are considered totaled by the previous owner’s auto insurance. A salvage car could get that title for something as little as having the airbag deploy in a minor fender bender. Or be completely burned to a crisp.

3. Is there any risk involved? You’re taking more of a risk when buying from these type of car auctions because the cars are sold in as-is condition and will need repairs and/or body work done. Sometimes the repairs could be as little as replacing a bumper to something so serious the car can only be used for parts. The car could’ve also been in a flood which will cause the electrical system to go out sooner or later. So, know what you’re getting into!

4. Who can go to one? Because of the risk involved, insurance salvage auto auctions are only open to car dealers that have a valid license. But, you can become friends with a local dealer that might take you along with them to their next auction. 9 times out of 10 they’ll charge you a fee though.

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5. Where can I find an insurance auto auction near me? You can ask your local dealer or find a car auction site online that will give you some locations near you.

So, now you know the real deal about insurance salvage auto auctions. They sell cars that have been totaled, so you’re going to have to make some kind of repair to it no matter what. You can find one near you by looking online or going with a used car dealer you know. But, you’re really better off going to a regular public auto auction that has cars that are generally in good condition. That way you don’t have to come out of your pockets to pay for repairs.

Not feeling too sure about going to a insurance salvage auto auction? I don’t blame you. Thankfully there are plenty of public, government and police car auctions you can go to that will still save you $1000’s off your next car.

Find out local car auctions in your area by visiting for the best car auction sites around!

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