Your changes will require approval by an administrator before they are published.
The article has been updated successfully but requires approval before it is published.Last Updated 7th of July, 2010
Should I be concerned if an insurance company once owned a used car?
|
Enter your Zip Code below to get a Free Quote. We suggest getting quotes from multiple companies to ensure you get the best rate. There is no obligation to purchase. 
|
Determining Market Value
You should be concerned if an insurance company once owned a used car, because it may indicate the car was once a salvage and is worth less than standard market value.When you’re looking to buy a used car, one of the most difficult things to determine is fair market value. There are a lot of factors that go into determining the fair market value of a car, including the car’s age, condition, and title history. If you see that an insurance company once owned a used car, this could be significant.
Insurance companies usually only take ownership of used cars when the cars they insure become “totaled.” In such cases, damage caused by an accident leads to repair expenses that are greater than the value of the car. Instead of paying more than the car is worth to repair it, the insurance company simply pays the owner market value for the car and takes possession of the wreckage. If the insurance company sells the wreckage, sometimes the buyer is able to repair the damage and return the car to the road. In this case the car will be reported on the title as a “salvage.”
Get the Vehicle History
Salvaged used cars are worth a lot less than standard used cars. If you’re considering buying a car and want to make sure it has a clean title and no salvage status, you ought to consider ordering a vehicle history report. A vehicle history report will tell you if an insurance company ever owned the car and if it was ever deemed a salvage.Post Comment for "Should I be concerned if an insurance company once owned a used car?"
To post a comment for this article, simply complete the form below. Fields marked with an asterisk are required.
User Opinions
No users have voted.
Visitor Comments