Whenever auction purchases are discussed, a question comes to mind for many people: is it possible to get insurance for a car bought at auction? If you are one of those people who would like to buy one... vehicle up for auctionBut if you're worried about not being able to protect your car afterwards, we have some advice for you: Read today's article to the end!

Issues involving car insurance and auction vehicles have always been closely linked.

In fact, a myth was created that auction cars could not be insured. 

That's not true; there are some auction cars that can indeed be insured, although there are also examples and models that cannot be insured. 

Today we're going to show you how to get insurance for a car bought at auction, but we're giving you a heads-up:

You need to know how to buy the right car so you can protect it after the purchase. 

Let's learn how to do this?

At a car auction, you can find different types of vehicles. 

And it is precisely at this moment that it is necessary to exercise caution and attention before bidding on and winning a particular car. 

Cars come from various backgrounds, and knowing their origin is crucial for determining whether or not they will be accepted by an insurance company. 

We'll now show you in which situations a car from an auction can and cannot be insured. 

You've probably heard of auction cars repossessed from financing companies. 

This type of car ends up being repossessed by financial institutions as payment for financing debt. 

When someone enters into a financing agreement with a bank or finance company to purchase a car, although the buyer has direct possession of the asset, in fact, ownership of the vehicle will only be transferred when the financing is paid off. 

Therefore, when financing a car, be aware that until all loan installments are paid, the vehicle will not be your property, but rather the property of the lender, in this case the bank or finance company. 

It often happens that people take on debts they cannot repay, and in these cases, the car may be impounded so that the amounts owed can be paid off.

It is through deals like this that repossessed auction cars from financing agreements emerge. 

It's important to know that cars repossessed from financing agreements don't necessarily have anything to do with accident cases, but rather with cars whose original buyers were unable to fully repay the loan. 

Now that you know what a vehicle recovered from a finance company is, you've probably concluded that this type of vehicle is usually in excellent condition. 

The language used in auctions is often a bit confusing for beginners. auctioneering universe. 

Therefore, it's important to clarify that in auction terminology, a salvaged car and a totaled car are classified differently. 

A salvaged car is a car that has been involved in some kind of incident.

This incident can range from theft to a collision, and it's usually more difficult to get coverage for a car with this type of origin. 

If you're looking for a car at auction because it's cheaper, but you also want to have it covered by car insurance, then the ideal option is to look for vehicles repossessed from financing agreements.

The procedure for insuring a car purchased at auction is the same as for vehicles purchased through other means. 

The first step is to obtain a vehicle inspection report. This document is provided at the time of sale of the vehicle. 

It's important to understand that sometimes a new report is needed to obtain insurance. 

However, this document will provide all the necessary access to the person during the process of preparing the release documents for the vehicle purchased at auction. 

This can happen when vehicles from certain auctions do not have a vehicle inspection certificate, or the certificate is irregular or has been altered. 

Furthermore, it is relatively common for insurance companies to refuse to insure damaged vehicles, as in some situations there is no information about the type of damage the vehicle suffered. 

In these situations, the insurance company may not accept to do The insurance for a car bought at auction.

As you might have guessed, the easiest vehicles to insure are those repossessed from financing agreements. 

These cars are usually in excellent condition and only went to auction because the previous owner was unable to pay the financing installments.

In the case of medium and large-scale accidents, it is still possible to obtain car insurance, but without collision coverage. 

This happens because the vehicle already has pre-existing damage. 

In the case of minor accidents, the insurance company will assess the policy and claims history. 

In this case, there is a possibility of taking out insurance and protecting the vehicle purchased at auction. 

In the case of minor accidents, the insurance company will assess the policy and claims history. For these cases, the insurance usually goes through without problems.

At this point you must be thinking:

Since there's a possibility I won't be able to get insurance for the car that I I bought it at auction.Do you have any advice on how to proceed and try to protect my auctioned car?

Yes, there are actually two tips that can be put into practice when insuring a car from an auction. Let's look at them. 

The first tip is to look for a broker who works independently and has partnerships with several insurance companies. 

With greater contact and partnership, the chances of him finding an insurance company that will insure an auction car are higher. 

It is also possible to request a quote with a percentage variation based on the FIPE table. 

This practice significantly increases the chances of acceptance by the insurance company. 

And our second tip is quite simple and obvious: Don't accept a negative response from the insurance company without a prior inspection. 

The insurance company cannot refuse to insure a car from an auction without a technical inspection to verify the car's structure, just as it cannot depreciate the vehicle simply because it came from an auction.

This is a practice considered

of the abusive nature of the practice, based on article 39, IX, of the Consumer Protection Code. 

This means that the insurance company is obligated to justify, in an acceptable manner and without any beating around the bush, the reason for denying the service. 

Now that you know it's possible to get insurance for auction car It's time to learn how to participate in a car auction and discover where you can snag your car for up to half the price!

To check out our guide on how to participate in a car auction, and to find the best places to buy your new car, just click the button below!