This article was composed by Marcus Rockey from CarVeto, a popular vehicle check service for private motorists buying or selling a used vehicle and checking its history. Visit their website to access a free car history check for any UK registered vehicle.
When a car has been involved in a road traffic accident with insurance company involvement, the insurer needs to determine if repairs are affordable or not. If repair is greater than the value of the car, it will be written off. The insurer will use a vehicle assessor to calculate repair costs and decide on the next steps.
Determining The Category Of Damage
The insurance company must return the vehicle to its original condition before it is damaged. But repair costs may be expensive depending on the type of car and extent of damage, with some repairs being made at specialist refurbishment centres.
ABI And Salvage Codes
The Association of British Insurers (ABI) provide updated write off categories that came into effect in 2017.
Pre 2017, write-off’s were classified as:
Cat A: Scrap no salvageable vehicle including all parts
Cat B: Scrap the chassis and car body shell, but some undamaged parts may be repurposed/reused
Cat C: Vehicle is repairable, but the cost of repairs exceeds car value before the damage
Cat D: The vehicle is repairable, but the cost of repairs exceeds car value before the damage
Update salvage costs, post-2017:
Cat A: Scrap non-salvageable vehicle including all parts
Cat B: Scrap the chassis and car body shell, but some undamaged parts may be repurposed/reused
Cat S: Structural damage but can be repaired
Cat N: Non-structural damage but can be repaired
To summarise, Cat A and B salvage codes have remained the same. Such vehicles are beyond repair and must be destroyed (except undamaged parts for Cat B vehicles). Cat C and D are renewed to S and N. Such vehicles qualify for potential repair, but the costs involved were more significant than the car’s worth.
Handling Your Insurance Company And Damaged Car
Insurance claims involve more than repair costs. Insurers need to calculate courtesy car use, admin costs and continued vehicle depreciation. These additional costs can push a damaged vehicle into a write off classification.
Repair To Value Ratios
Each insurer has its repair to value ratio, and these usually range from 50% to 60%. It means that should calculated repair bills exceed the repair value ratio; the insurer is likely to deem the car a write off. It’s all about repair economy. If a vehicle costs too much to fix, it will be sent to salvage.
Keeping A Write Off
In some cases, the car owner may buy their damaged car back from the insurance company after the write off status has been declared. This is after the insurer has paid out the insurance claim to the registered keeper. Cat A and B cars are permanently destroyed, so buyback is not permitted. But Cat S and N vehicles qualify for a buyback. Drivers will need to discuss this process with their insurer.
Donating A Car Write Off
Giveacar is a social enterprise that recycles old or written off vehicles while raising money. If you have been thinking of supporting a charity, why not donate your car with Giveacar. Use this link for more details about buying your old written off vehicle back from your insurer and donating it! Here are some of the charities you can choose from to donate your vehicle.
Notify DVLA Of Write Off Status
It’s usually the car owner’s responsibility to let DVLA know the car is a write-off. There are circumstances where the insurer informs DVLA via the V5C logbook. If the insurance company do not notify DVLA, it remains the responsibility of the registered keeper.
Stolen And Written Off
The Police recover around 50% of stolen vehicles. Often, they have suffered damage of one kind or another. Some are so severely damaged they are written off. These vehicles are classified in the same way as any other accident damaged vehicle with a write off status.
Motor Insurance Anti-Fraud Theft Register (MIAFTR) are notified when a car is recovered but not written off. It ensures the car and its appending reg number are removed from the write off alert register (an essential process in minimising the impacts of theft whilst helping to maintain car value).
Insuring A Write Off Repaired Vehicle
There are a few companies that provide insurance cover for cars written off and repaired. Again, Cat A and B write offs are destroyed, but Cat S and N can be insured if they are professionally repaired and have a new MOT test (when the car is over 3-years of age). Some insurers will also ask for a professional engineers report outlining previous damage, repairs, and replaced parts. But, this process differs with each potential insurer.
Final Comments On Write Off
As a general rule, vehicles written off, repaired and put back on the road tend to be older. Because older cars are generally worth less, they are susceptible to becoming written off as repair costs quickly exceed their lower value.
If you choose to buy a written-off car, get a proper car history check before buying. Some vehicle data services now offer a list of zones where a car was damaged. The data can be helpful for buyers who can make visual inspections of the repair work before they commit to buying.
But note, written off cars are almost always worth less. How much will depend on the make model of the car and the extent of damage.