Totaled car sale to auto auction using REG262 in CA - seems fishy
February 2, 2024 8:01 AM Subscribe
I was in a car accident that totaled my car. Totaled car is being held as salvage by auto auction company, Insurance Auto Auctions. IAA has offered me a few thousand dollars (which I would like!) for what remains of my car.
The process for me to sign over the car to IAA (and for me to receive the money) seems scammy to me, and I am concerned from a legal standpoint about signing my car over. Otherwise, I walk away from the money.
1. In an email I was instructed to complete the forms in a specific way. For example, on the REG262 I only need to complete the VIN and sign the form --- no odometer reading (which doesn't make sense, my car is < 10 years old, and the other party's insurance company gave me my odometer reading because they said I would need it). I was also instructed not to complete any other info on the form, such as make, model & year.
2. For the title I'll be signing over, again I was instructed not to complete the odometer reading.
I'm concerned that I'm involved in a scam that IAA is perpetuating, and they are using my name & signature in order to do so. (I have to sign all 3 forms). My full name & current address is on the title, so they literally have all my information.
Any thoughts? I definitely want the money offered by IAA, but I am reluctant to do so if I'm involved in something I will regret later.
1. In an email I was instructed to complete the forms in a specific way. For example, on the REG262 I only need to complete the VIN and sign the form --- no odometer reading (which doesn't make sense, my car is < 10 years old, and the other party's insurance company gave me my odometer reading because they said I would need it). I was also instructed not to complete any other info on the form, such as make, model & year.
2. For the title I'll be signing over, again I was instructed not to complete the odometer reading.
I'm concerned that I'm involved in a scam that IAA is perpetuating, and they are using my name & signature in order to do so. (I have to sign all 3 forms). My full name & current address is on the title, so they literally have all my information.
Any thoughts? I definitely want the money offered by IAA, but I am reluctant to do so if I'm involved in something I will regret later.
Are you going through your insurance, or the other party's? If so, I would expect the primary insurance to be sending you a payout (inluding the salvage cost) and then receiving the salvage check to reimburse part of their costs. When my car was totaled, this is how it worked. I DID have to sign it over, but that was handled through insurance.
posted by DoubleLune at 8:36 AM on February 2, 2024
posted by DoubleLune at 8:36 AM on February 2, 2024
Yeah, my insurance company would not give me their money until I had signed it over to them. You can get one or the other, but not both, and insurance companies are all over that like flies on poop.
posted by Melismata at 9:06 AM on February 2, 2024 [1 favorite]
posted by Melismata at 9:06 AM on February 2, 2024 [1 favorite]
IAA is trying to get the payoff from your insurance into their pockets. If you've signed-off on a settlement with your insurer and signed the title over to them, you should have no obligation to IAA.
Contact your insurer and let them know what's happening.
posted by Thorzdad at 9:26 AM on February 2, 2024 [3 favorites]
Contact your insurer and let them know what's happening.
posted by Thorzdad at 9:26 AM on February 2, 2024 [3 favorites]
If you sell the car as salvage you have to notify your insurance company and they will offset the offset the amount of your payout by the amount you get from the auction company.
It’s not bonus money.
The auction company is probably just trying to get the car cheaper than what the insurance company would sell it for and you’re just their back way in.
Legally there’s no upside for you here.
posted by bitdamaged at 9:29 AM on February 2, 2024
It’s not bonus money.
The auction company is probably just trying to get the car cheaper than what the insurance company would sell it for and you’re just their back way in.
Legally there’s no upside for you here.
posted by bitdamaged at 9:29 AM on February 2, 2024
You never mentioned how the car arrived at this particular salvage yard. Is this just the place where they towed it to?
When I totaled my car a couple years ago, this is what happened:
1. The car was towed to a nearby salvage yard that contracts with the highway department. I had no choice in this. The state police made the call after determining that the damage met their threshold.
2. Once my insurance company was made aware of where the car was located, they contacted me and asked permission to move the car to *their* salvage yard where it could sit until they appraised it.
3. A few days later, the car was totaled. My insurance company sent me the paperwork to sign over the car to them in exchange for a check. At that point, it was no longer my car.
posted by RonButNotStupid at 11:57 AM on February 2, 2024
When I totaled my car a couple years ago, this is what happened:
1. The car was towed to a nearby salvage yard that contracts with the highway department. I had no choice in this. The state police made the call after determining that the damage met their threshold.
2. Once my insurance company was made aware of where the car was located, they contacted me and asked permission to move the car to *their* salvage yard where it could sit until they appraised it.
3. A few days later, the car was totaled. My insurance company sent me the paperwork to sign over the car to them in exchange for a check. At that point, it was no longer my car.
posted by RonButNotStupid at 11:57 AM on February 2, 2024
Mod note: From the OP:
Mercury Insurance, the insurance company has already given me a payout. After they did their inspection, they gave the car to IAA who offered me a smaller sum of money to pay for...getting rid of the remains of my car, I guess? If you can't tell, this is all new to me. Apparently, that's how Mercury handles totaled cars, but to answer the questions above, the IAA sum was included as an additional payout to me, should I choose to pursue it.posted by taz (staff) at 10:59 PM on February 2, 2024
I have already decided to write the odometer reading on the title as well as the REG262 form, because both forms expressly state that I am stating the reading is true, under both federal and state law. If IAA is up to wrong doing, at least I kept my side of the dealings lawful.
It's really interesting to me that Mercury Insurance didn't ask me to sign over the title to them, but I already have the money.
I'll call Mercury in the morning. Thanks for everyone's answers.
Added info: IAA has my car listed for auction on their website! I saw it, with the correct identifying information and photos. Why would anyone buy a totaled car?
People buy totaled cars because they are often a good source of parts or can be fixed and returned to service. Sometimes salvage repair is shady AF (like laundering titles to obscure the damage history and rip somebody off shady), but sometimes it's done reasonably well. Insurance companies are often very quick to total cars these days, so it's not uncommon to be able to buy a couple of totaled ones and cobble together something decent if one is mechanically inclined and has the time and space to do the necessary work.
posted by wierdo at 2:02 AM on February 3, 2024
posted by wierdo at 2:02 AM on February 3, 2024
This thread is closed to new comments.
posted by brookeb at 8:17 AM on February 2, 2024 [1 favorite]