If you have auto insurance in Fort Lauderdale, Florida then you are probably wondering how things work. For many, the next time they see their car is to wonder if they should go to the police or if they should go ahead and sell it to pay for the insurance premium.
What happens when an insurance company sells your car to pay for your premium is that it does not add any extra money to your premiums, but it does lower your car value. This is true whether you're selling it to a buyer or the insurance company itself.
The difference between selling a car to an insurance company versus going to the police can be huge. Here are some reasons why selling your car yourself is a better option than contacting the police.
You can have the car inspected before it is sold. If you contact the police, this could take weeks or months before you get a value of your car. The police may even need to tow the car away if they are unable to do the inspection yourself.
The longer the car sits, the lower the car value becomes. There is no way to tell how much a car will be worth until it has been there for a few months. Because there is no guarantee that the car will be sold within a certain amount of time, the police has no idea how much the car would be worth when the insurance company bought it.
A car that is being sold to the insurance company is kept in a cold storage facility as an asset. At this point, it is unlikely that the insurance company will make repairs to the car in order to resell it to someone else.
However, once the company buys the car, they usually decide to keep it. Since the car is used almost exclusively for its business purposes, the depreciation is minimal. The reason why it is kept is so that it can be insured, when the customer decides to resell it.
If the insurance company buys the car and does not resell it, it will have a depreciation rate of about one percent a year. However, it is a great deal cheaper than what it would cost to fix the car and then send it to the police department to be inspected. This happens to be the best route to take.
Now that you know more about what happens when an insurance company totals your car in Fort Lauderdale, let's talk about how to do it yourself. Here are a few tips to keep in mind.
It's time to set up a listing on Craigslist. If you don't already have a listing online, then it's time to create one. Once you have created a listing, then go ahead and post that it is for sale. The more descriptive the listing is, the more likely someone will be interested in buying it.
Once someone buys the car, call them up and pay the insurance company for the car. Give them a few days to get everything together before the police come. Since the person already knows that the car is on the market, they will be willing to negotiate the price.
Car auctions and private sales are two other ways to sell your car. Because a lot of people end up ending up with a bad car at some point, it may be worthwhile to get a bad car at a cheap price. Keep in mind that the value of a car depreciates significantly over time, so consider selling your car a few months after the insurance company pays for it.