What is an insurance recovery car?

An insurance recovery car is a vehicle that has been declared a total loss by an insurance company and then subsequently repaired and sold. Insurance companies typically declare a vehicle a total loss when the cost of repairs exceeds the vehicle's actual cash value. However, in some cases, the insurance company may decide to repair the vehicle rather than totaling it. These vehicles are then often sold at auction or through salvage yards.

Insurance recovery cars can be a good deal for consumers who are looking for a used car at a discounted price. However, it is important to be aware of the potential risks associated with buying an insurance recovery car. These risks include:

* Unknown damage: Insurance recovery cars may have hidden damage that is not immediately visible. This damage could potentially pose a safety risk or result in expensive repairs down the road.

* Salvage title: Insurance recovery cars typically have a salvage title, which means that they have been declared a total loss by an insurance company. This can make it difficult to obtain financing for the vehicle and may also affect its resale value.

* Limited warranty: Insurance recovery cars often come with a limited warranty or no warranty at all. This means that the buyer is responsible for any repairs that are needed after the purchase.

If you are considering buying an insurance recovery car, it is important to do your research and carefully inspect the vehicle before making a purchase. You should also be aware of the potential risks associated with buying this type of vehicle.