"Buy back" is the term used when someone retains salvage on the vehicle. The insurance company doesn't have any use for your damaged car, so when doing the total loss evaluation, they may contact several salvage companies for salvage bids. If you elect to retain the vehicle, you essentially are paying the insurance company the salvage value of the vehicle. Or buying the salvage rights. The check that is issued to you when you retain the vehicle is the total loss amount less the salvage value. For example: If the total loss amount of the vehicle is $10,000 and the insurance company has a quote from a salvage company for $2000 for your car, then the check you get from the insurance company is $8,000. You just "bought" your vehicle back from the insurance company for $2000.
As far as vehicle ownership goes, if you read the fine print in your policy, when a vehicle is deemed a total loss, if they issue a payment for fair market value of your vehicle, they assume ownership. If you don't retain the vehicle, you sign over the title via power of attorney. If you retain the vehicle, and intend to repair it, you have to file for a "branded" or salvage title.
[ 26. August 2004, 11:51 AM: Message edited by: CR Caddy ]