YOG
Well-known member
A short article on 'Cat D', 'Cat C' and 'insurance write-offs'. The paragraph highlighted in "blue" is interesting, and shows why the insurance companies initial offers are usually low.
Cat D cars & insurance write-offs: Top tips. Carbuyer Article Mar 12, 2014:
What is a 'Category D' car and should you buy one? Check out our tips and advice.
'Cat D', 'Cat C' and 'insurance write-offs' are phrases you may have heard fairly often, particularly when shopping for a used car. Insurance companies will often write off cars that have been involved in accidents - however, some will be written off for other reasons, for example because of flood damage. Every car written off by an insurance company will be given a category that indicates what condition the car is in and how it can be used afterwards.
Understanding write-offs:
The term ‘write-off’ is often misunderstood – it doesn't always mean that a car is beyond repair or permanently unsafe to drive but rather that the insurance company is writing off the cost of repairing it because doing so would be uneconomical considering the car's value.
It's not always clear what the various categories mean when a car is written off, so read on for a clearer picture of what happens when an insurance firm decides not to repair a damaged vehicle. If you're looking for a new car and are concerned about safety in the event of your car getting damaged in an accident, you can also see the cars rated the safest by Carbuyer by clicking here.
What happens when a car is written off:
When a car gets damaged, the owner will normally call his or her insurance company to tell them. It's then up to the insurer to assess the cost of parts, labour and storage involved in the process of repairing the car and decide whether those costs, in relation to the overall value of the car, make repairing it worthwhile. For example, if a car valued at £3,000 requires repair work costing £2,500, the insurance company is likely to take the decision to write it off.
Be aware that an insurance company will often value your car at a fairly rock bottom price and write it off because it would be more profitable for them to give you the cash, repair your car themselves and take a calculated chance on selling it at a higher price than their valuation. Many claimants will get involved in at least some negotiations with their insurance companies about the value of their cars in write-off cases, as it's in the interest of the insurer to value it as low as possible.
If a car is written off, the owner will get a sum of money that the insurer deems to be the value of the car, or the owner can choose to keep the car and have it repaired at their own cost. Opting for the latter means your car has been officially written off, and will be registered as a Cat C or Cat D vehicle.
Cat A, Cat B, Cat C and Cat D category write-offs:
If a car is to be written off, the insurance company's staff or an independent engineer will put the car into one of four categories: A, B, C and D. These are often known as Cat A, Cat B, Cat C and Cat D, and they mark out how severe the damage is.
Category A: scrap only – Cat A cars are the most severely damaged and should not be put back on the road - their parts can only be sold for recycling.
Category B: break for parts – Cat B cars are also too unsafe to be allowed back on the road, but there will be some parts that can be removed and sold as spares. Its shell (the main component of the car) must be crushed.
Category C: repairable total loss – Cat C cars are allowed back on the road, as the damage is repairable, but the cost of the repair work is substantial enough that it's more than the value of the car. The car must be subject to a Vehicle Identity Check (VIC).
Category D: repairable significant damage – Cat D cars are also allowed back on the road, because the damage can be repaired. Unlike Cat C, however, the repairs won’t cost more than the value of the car, but it is significant enough for the car to be written off.
Cat C and Cat D cars
In order for a car to be put back on the road after a Cat C classification, it must be repaired and then be subject to a Vehicle Identity Check (VIC), carried out by the Vehicle Operator and Services Agency (VOSA). This check makes sure the car is what it purports to be in order to prevent money-making scams.
However, this inspection does not check the quality of the repairs or the roadworthiness of the vehicle – so some Cat C cars may be dangerous. The cars are, though, still subject to an MOT test in order to be allowed on UK roads and to qualify for tax and insurance. Insurance premiums on Cat D and C cars should not be affected compared to a normal car, though it's best to check with your provider before you sign on the dotted line. For advice on securing the cheapest car insurance deal, read our guide on how to get the lowest premiums.
Only cars that are written off and not repaired at the insurance company's expense carry a category C or D listing. Cars that are damaged but then repaired by the insurance company remain unlisted.
In general, it's advisable to avoid having your car written off if at all possible, even if this means arguing with your insurer. Even if you yourself get your car repaired and back on the road as a Cat D vehicle, the classification will affect its resale value even if it doesn't affect your insurance costs.
Cat D cars & insurance write-offs: Top tips. Carbuyer Article Mar 12, 2014:
What is a 'Category D' car and should you buy one? Check out our tips and advice.
'Cat D', 'Cat C' and 'insurance write-offs' are phrases you may have heard fairly often, particularly when shopping for a used car. Insurance companies will often write off cars that have been involved in accidents - however, some will be written off for other reasons, for example because of flood damage. Every car written off by an insurance company will be given a category that indicates what condition the car is in and how it can be used afterwards.
Understanding write-offs:
The term ‘write-off’ is often misunderstood – it doesn't always mean that a car is beyond repair or permanently unsafe to drive but rather that the insurance company is writing off the cost of repairing it because doing so would be uneconomical considering the car's value.
It's not always clear what the various categories mean when a car is written off, so read on for a clearer picture of what happens when an insurance firm decides not to repair a damaged vehicle. If you're looking for a new car and are concerned about safety in the event of your car getting damaged in an accident, you can also see the cars rated the safest by Carbuyer by clicking here.
What happens when a car is written off:
When a car gets damaged, the owner will normally call his or her insurance company to tell them. It's then up to the insurer to assess the cost of parts, labour and storage involved in the process of repairing the car and decide whether those costs, in relation to the overall value of the car, make repairing it worthwhile. For example, if a car valued at £3,000 requires repair work costing £2,500, the insurance company is likely to take the decision to write it off.
Be aware that an insurance company will often value your car at a fairly rock bottom price and write it off because it would be more profitable for them to give you the cash, repair your car themselves and take a calculated chance on selling it at a higher price than their valuation. Many claimants will get involved in at least some negotiations with their insurance companies about the value of their cars in write-off cases, as it's in the interest of the insurer to value it as low as possible.
If a car is written off, the owner will get a sum of money that the insurer deems to be the value of the car, or the owner can choose to keep the car and have it repaired at their own cost. Opting for the latter means your car has been officially written off, and will be registered as a Cat C or Cat D vehicle.
Cat A, Cat B, Cat C and Cat D category write-offs:
If a car is to be written off, the insurance company's staff or an independent engineer will put the car into one of four categories: A, B, C and D. These are often known as Cat A, Cat B, Cat C and Cat D, and they mark out how severe the damage is.
Category A: scrap only – Cat A cars are the most severely damaged and should not be put back on the road - their parts can only be sold for recycling.
Category B: break for parts – Cat B cars are also too unsafe to be allowed back on the road, but there will be some parts that can be removed and sold as spares. Its shell (the main component of the car) must be crushed.
Category C: repairable total loss – Cat C cars are allowed back on the road, as the damage is repairable, but the cost of the repair work is substantial enough that it's more than the value of the car. The car must be subject to a Vehicle Identity Check (VIC).
Category D: repairable significant damage – Cat D cars are also allowed back on the road, because the damage can be repaired. Unlike Cat C, however, the repairs won’t cost more than the value of the car, but it is significant enough for the car to be written off.
Cat C and Cat D cars
In order for a car to be put back on the road after a Cat C classification, it must be repaired and then be subject to a Vehicle Identity Check (VIC), carried out by the Vehicle Operator and Services Agency (VOSA). This check makes sure the car is what it purports to be in order to prevent money-making scams.
However, this inspection does not check the quality of the repairs or the roadworthiness of the vehicle – so some Cat C cars may be dangerous. The cars are, though, still subject to an MOT test in order to be allowed on UK roads and to qualify for tax and insurance. Insurance premiums on Cat D and C cars should not be affected compared to a normal car, though it's best to check with your provider before you sign on the dotted line. For advice on securing the cheapest car insurance deal, read our guide on how to get the lowest premiums.
Only cars that are written off and not repaired at the insurance company's expense carry a category C or D listing. Cars that are damaged but then repaired by the insurance company remain unlisted.
In general, it's advisable to avoid having your car written off if at all possible, even if this means arguing with your insurer. Even if you yourself get your car repaired and back on the road as a Cat D vehicle, the classification will affect its resale value even if it doesn't affect your insurance costs.
