Originally Posted by Nrobert10
How does it have a clean title when it was totaled and sold at a insurance auction?
The poster nor did the CL ad say it was sold at the insurance auction. YOU made that assumption!
The simple answer to that question of why the van has a clear title may very well be this:
The original van owner of the van filed an insurance claim on the damage and received a settlement offer from the insuror. He also inquired about purchasing the wrecked van back from the insurance company. Insurance company gives the owner a price on the wrecked van and the owner accepts that price. The owner is then paid for the damaged van LESS the negotiated amount for the "salvage" (The wrecked Van).
This van is a 2003 model and NOW in some states (Tennessee where I live is one) insurance laws now allow that if the wrecked vehicle is over 10 model years old AND the owner purchases their wrecked vehicle (salvage) back from the insurance company all the insurance company needs to settle the claim is a copy of the original vehicle title showing that the owner owns the vehicle AND has a clear/unencumbered title to that vehicle in their name.
NO SALVAGE TITLE IS ISSUED NOR IS ONE REQUIRED!!!
The owner can then repair, sell, junk, donate or pretty much whatever they want to do with their wrecked vehicle with the same GOOD TITLE in their name they had prior to the accident.
Carfax/Autocheck may show an insurance payoff of some type on the vehicle HOWEVER the vehicle will not have a Salvage Title notation as the wrecked vehicle never went through the salvage vehicle process.
All completely legal and can save the insurance company a ton of money!
Ask me how I know?
I did this exact process when my daughter's 2 door Tahoe was wrecked. I also hold an insurer's producers license and therefore am aware of the insurance laws regarding property and casualty claims as they relate in the State of Tennessee.