You usually don't buy from the insurance company directly. You buy at the salvage auctions insurers sell through, mainly Copart and IAA. After an insurer pays a total loss, it applies for a salvage certificate and sends the car to auction. Licensed dealers and dismantlers get the widest access. The public can bid on some lots as registered members and on more through a broker, and each listing says who's allowed to bid.
Educational information only. This article is not legal or financial advice.
In this article
- How insurance cars reach auction
- Four ways to buy
- What to check before you bid
- Reselling salvage cars legally
- Frequently asked questions
How insurance cars reach auction
- The insurer declares the car a total loss and pays the owner.
- A salvage certificate is applied for within 10 days (Vehicle Code §11515).
- The car goes to a salvage auction yard. Copart has 20 yards in California.
- Buyers bid online, and the winner pays fees and picks the car up by the deadline.
Four ways to buy
| Path | Access | What to know |
|---|---|---|
| Licensed dealer | Most lots, including most salvage | Buy for resale under your license. See Copart guide and IAA guide |
| Licensed dismantler | Salvage and nonrepairable lots for parts | Requires a dismantler license |
| Broker | More lots than a public member | The broker bids for you and adds its own fee |
| Registered public member | Some lots open to the public | Membership levels and deposits set how much you can bid |
What to check before you bid
- Title type: salvage certificate, nonrepairable, or clean. A nonrepairable vehicle can't be re-registered.
- Who can bid: each listing states it, and that overrides anything general.
- Damage and run status: photos and notes can understate damage, and many cars aren't drivable.
- All-in cost: buyer fees that scale with price, other fees, broker fees, transport and storage after the pickup deadline.
- Repair and revival cost: parts, labor, brake and lamp inspections, a DMV or CHP inspection, and smog. See How do you sell a rebuilt title car?
Reselling salvage cars legally
Buying salvage cars to fix and resell is buying vehicles to resell, which requires a dealer license in California. A salvage vehicle rebuilder (Vehicle Code §543.5) who sells a total loss salvage vehicle must also give the buyer a vehicle safety systems certificate (Vehicle Code §24007(d)). See Is there a rebuilder license in California? and Can you buy from Copart without a license?
Frequently asked questions
Can I buy a car directly from an insurance company?
Rarely. Insurers usually sell total-loss vehicles through salvage auctions such as Copart and IAA.
Do I need a license to buy salvage cars in California?
Not for every lot. Some are open to registered public members, and a broker can bid on more. Many salvage lots require a dealer or dismantler license, and reselling for profit requires a dealer license.
Can I drive a salvage car home from the auction?
No. A salvage-certificate car can't be driven on public roads until it's repaired, inspected and re-registered. Plan to tow or transport it.
Related questions
- How does a car get a salvage title in California?
- Can you buy from Copart without a license?
- Can you sell a car with a salvage title in California?
- Back to the California Dealer License FAQ
Resources
- DMV: How to obtain a salvage or nonrepairable vehicle certificate (HTVR 16) (Opens in new window)
- DMV: How to reregister a salvage vehicle (HTVR 13, PDF) (Opens in new window)
- California DMV: Branded titles (Opens in new window)
- California Vehicle Code §543.5 (Opens in new window)
Sources: Vehicle Code §§11515, 543.5 and 24007 · DMV salvage pages linked above · CDA's Copart and IAA guides. Verified 2026-10-16.
This article is for educational purposes only and is not legal or financial advice. California Dealer Academy isn't affiliated with Copart or IAA. Auction rules change; check each listing's buyer requirements.