Insurance Auto Auction, established in 1982, has developed into a head head in automotive recovery business and a leader in providing corporate loss assurances services.
Salvage auto auctioneers like Insurance Auto Auction typically obtain their cars insurance companies looking to recoup their losses on cars that have been totaled in an accident or natural disaster as well as some vehicles that were stolen and recovered after a settlement was made with the insured. Historically, the auctioneer makes money on the transaction by charging sellers a flat consignment fee of $ 50 to $ 150 per vehicle to cover services like towing, assessment, title processing, and storage. After the sale, buyers often paid for the same services. But this modus operandi had a serious flaw: it cast auctioneers as disinterested parties to the transaction, with no incentive to obtain the highest price for their primary clients, the insurance companies. This is why the vehicles are sometimes auctioned off for less than 50% of their current market value.
In 1991, Insurance Auto Auction inaugurated its "CarCrush" and "TitleTrac" anti-fraud programs. Although most wrecked vehicles have some intrinsic value, some are so badly damaged that only one tiny bit retains its worth: the vehicle identification number. Auto theft rings often purchase these other useless heaps, steal an identical but operational vehicle and then apply the total car's VIN and title to the stolen auto. Insurance Auto Auction's "CarCrush" program advised insurance companies to take useless vehicles' VINs out of circulation by dismantling these total losses. "TitleTrac" monitored buyers' auto trading habits for telltale signs of unscrupulous deals.
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