Auto Insurance Companies That Don’t Offer Buy Back After a Total Loss (2021)

Auto insurance companies that don't offer a buy back after a total loss accident are reluctant about insuring a vehicle with a rebuilt title and a high-risk driver. A car becomes a total loss if the property damage is 60% or more of the vehicle's value. You'll need to negotiate a settlement with the auto insurance companies that do offer a buy back after a total loss. Shop around and compare multiple companies to secure the best policy.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Sep 22, 2021

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A Concise Overview

  • A vehicle is considered a total loss when repairs cost 60% or more of the vehicle’s value
  • Most auto insurance companies allow you to buy back your totaled car
  • The buy back value of your totaled vehicle is the actual cash value minus salvage deduction and other fees

Did you know there are some car insurance companies that don’t offer a buy back after a total loss? An auto insurance company may declare your vehicle a total loss, though sometimes a repair can get you back on the road.

If you’re looking for a car insurance company that gives an option to buy back a total-loss car, don’t worry — we’re here to help.

Our guide explains what auto insurance coverages you need to secure a buy back and what you’ll need to drive a repaired vehicle that’s a total loss.

After you learn more about auto insurance companies that don’t offer a buy back after a total loss, enter your ZIP code in the free comparison tool to see what the best companies provide in your area.

Which auto insurance companies don’t offer a buy back after a total loss?

Car insurance companies may deny your request to buy back a total loss vehicle if you don’t have the right coverage options or your vehicle is visibly damaged beyond repair.

A vehicle is considered a total loss if the cost of repairs is 60% or more of the car’s value.

It’s challenging to pinpoint which insurance companies don’t offer a buy back option. The best car insurance companies focus on getting you into a new car if you have full coverage auto insurance and GAP insurance.

What about auto insurance companies that do offer a buy back after a total loss? Read on to learn more about those companies.

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Which auto insurance companies do offer a buy back after a total loss?

Car insurance companies that provide full coverage may have a buy back option after a total loss accident. Whether you buy back a total loss vehicle or not, it’s identified as salvage until it’s repaired.

Here’s a list of the best companies that offer a buy back.

  • Allstate
  • American Family
  • Farmers
  • GEICO
  • Liberty Mutual
  • Nationwide
  • Progressive
  • State Farm
  • Travelers
  • USAA

Several fees are deducted from your car insurance claim, and you may not receive the money you paid into the vehicle.

The auto insurance company will sign over a salvage title, but the insurance company won’t insure the car.

What if I still owe money to a lender after my vehicle is totaled?

Car insurance companies pay the actual cash value of the car after an accident. The auto insurance company doesn’t cover the interest rates from the lender through collision or comprehensive auto insurance.

GAP insurance can provide the help you need. GAP insurance can cover the difference between the actual cash value of a car and the balance you owe to a lender.

How do I know if a vehicle has been branded as salvage?

States have different descriptions that may list a vehicle as salvage. Some descriptions that could correlate with salvaging are:

  • Flood damage
  • Collision damage
  • Fire damage
  • Rebuilt title
  • Inoperable and non-repairable vehicle
  • Total-loss car

If the damage is too severe, a buy back isn’t your best option, but if the damage is a cosmetic issue, you may want to negotiate for your total-loss vehicle.

How do I negotiate with auto insurance companies about a total loss?

Before a buy back, a vehicle is identified as a total loss but not salvage. Car insurance companies go by the pre-accident value (PAV). Sometimes, you’ll see it listed as actual cash value (ACV).

Auto insurance companies use the manufacturer suggested retail price (or MSRP) for new model year vehicles.

The insurance company deducts salvage from the value and offers you a buy back value.

Salvage deduction is the cost an auto insurance company would’ve received if they took the vehicle to a scrapyard.

After deductibles and other fees have been applied, you can receive a salvage title and the damaged car.

You’ll need to convince an insurance agent or adjuster that a buy back is in your best interest. Show them a few estimates and explain your situation to get results.

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Do I need to notify the DMV if my car is totaled?

It depends on the state, but most insurance companies, scrap yards, and drivers submit total loss vehicles to the Department of Motor Vehicles (DMV).

If the totaled car is identified as salvage, you’ll need to get a salvage title for the vehicle. However, if a total-loss car has been repaired, you’ll need a rebuilt title (also called rebuilt salvage title).

Totaled car information can be accessed by DMVs, police departments, and the public (for a fee). Also, car insurance companies require vehicles with rebuilt titles to get inspected and approved before getting insured.

Auto Insurance Companies That Don’t Offer a Buy Back After a Total Loss: The Bottom Line

Most auto insurance companies will allow a buy back if you negotiate with them. Trying to convince an agent to sell a totaled vehicle back to you for repairs may be challenging.

Car insurance companies that don’t offer a buy back after a total loss may want to avoid the complications of insuring a rebuilt vehicle and a high-risk driver.

We recommend adding GAP insurance to your car insurance policy to prevent out-of-pocket costs. Also, it gives you an additional option if you can’t buy back your total-loss car.

Hopefully, this guide taught you more about auto insurance companies that don’t offer a buy back after a total loss. Use our free online quote tool to compare multiple insurance companies near you.

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