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What is meant by the term 'Insurance Write Off'?
When a vehicle is damaged beyond economical repair the vehicle is called an 'insurance write off' or an 'insurance total loss'. Some 1500 cars are written off daily in the UK but that doesn't mean that they are worthless. Scrap metal and wrecked cars can have huge value so never pay to have your car taken away. The insurance write off category will determine what can be salvaged from a vehicle and this will also determine the route you should take to maximise the insurance settlement offer.
Write Off Categories
The insurance write off categories are as follows:
Category A Insurance Write Off - the vehicle must scrapped and no parts or components can be sold other than for scrap. Amounts vary but Category A Insurance Write Off vehicles can be very valuable. Consider some of the online companies that will buy you car 'what ever the condition.' If the insurance company are prepared to give you a settlement figure and the car wreckage then make sure you shop around the various websites for the best offers.
If all else fails try your local scrap metal dealer, they will often pay good money for scrap cars or unrepairable vehicles. Visit our Scrap Cars page for more details.
Category B Insurance Write Off - the vehicle must not be used again but non- structural and roadworthy parts and components may be recovered for use in other vehicles. Care must be taken to ensure that they are not critical components with important safety functions. Again there are several online companies who will offer significant amounts of money for Category B Insurance Write Off vehicles.
Category C Insurance Write Off - the vehicle is repairable but the parts and labour would exceed the value of the car. This is a tricky situation as there are plenty of amateur and professional mechanics who could use second hand parts to repair these vehicles at much lower prices than the list costs for parts and labour. Discuss this with your insurance company if you want to keep the car rather than have it written off.
Category D Insurance Write Off - the vehicle is economically repairable but other factors are involved that cause the insurer to declare the vehicle a write off. Perhaps the replacement car hire is too costly or it will take too long for a specialist part to be delivered. Again, discuss this with your insurance company if you want to keep the car.
Category X Insurance Write Off - the vehicle is easily repairable and may even be still roadworthy.
Unrecorded Insurance Write Off - the vehicle damage was not reported to the insurer or the driver was uninsured. The most common example is drivers who only have third party insurance but have had an accident that was their fault (usually not involving anyone else).
Settling a Claim
This is where you will face a dichotomy. You will want the biggest insurance pay out possible while the insurer will want to pay out the smallest amount they can get away with. The insurer will use standard industry tables for calculating the worth of the vehicle. The onus will be on you to prove that the value was above the industry standard. Examples include modifications, better condition than expected for the age and particularly low mileage. The insurance company will take into account any evidence you provide then make you an offer. Never accept this first offer! Unusual, Vintage, and HP/Financed Vehicles
If your vehicle is a non-standard model or it is under some sort of HP, leasing or finance arrangement then you must get an 'agreed value' for your vehicle when you take out an insurance policy. The HP, loan or finance agreement is seperate to the value of the vehicle. You will still owe £x,000 even if the vehicle is written off. You can prevent this situation by taking out Gap insurance to cover any negative equity after the insurer has paid the final settlement. If you have a vintage, leased or unusual vehicle then you must shop around as prices for insurance vary enormously.
The Settlement Figure
Insurance law in the UK is based on the premise that you should be no worse or better off once a final settlement has been made. The onus is on you to prove that you cannot get a replacement vehicle similar to the one written off. The normal method of doing this is to use a vehicle valuation website or magazine and look up the value of your vehicle for a given mileage. If the settlment figure is less than the price listed in the magazine you have reasonable grounds for an incresed settlement figure. Insurers usually try to settle quickly as their costs increase with every day you are driving round in a hire car.
If you don't have replacement vehicle cover on your policy then make sure you get a top up policy now. A number of companies specialise in these top up policies. Many people buy the most basic insurance policy possible then buy an additional top up policy. It usually works out a lot cheaper.
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