Steve-V6-D61
New Member
A 'write off' is a colloquial term for a vehicle which has been declared a total loss by an insurer, either following accident damage or theft. There are some 450,000 accident-related write-offs every year and another 150,000 insurance thefts, many of which are subsequently recovered damaged and re-classified. Many write-offs are legitimately allowed back on the roads following a repair; the safest ones to buy are those which have passed an independent vehicle inspection, such as those on HPI's Condition Inspected register. However, almost half of all write-offs are so badly damaged that qualified insurance inspectors determine that they should never go back on the road. To assist the industry and the used car buyer, the Association of British Insurers (ABI) has since 1997 provided the following classification of damage to vehicles that have been deemed an insurance write-off:
o Category A:
Scrap only - this vehicle should be crushed. It should never reappear on the road and there are no economically salvageable parts. It is of value only for scrap metal - e.g. a totally burnt-out vehicle.
o Category B:
The bodyshell should be crushed. The vehicle should never reappear on the road, but it can be broken for spare parts plus any residual scrap metal.
o Category C:
Vehicle extensively damaged and insurer has decided not to repair. May be repaired and put back on the road. Has to pass an inspection costing £36 (2007 price) to be re-registered as damaged repaired.
o Category D:
Vehicle damaged and insurer has decided not to repair. When fixed can be re-registered as damaged repaired.
Think of Cat D like this example:
A Clio V6 is worth £13,000, but sustains some minor cosmetic damage.
The damage will cost £7,500 for an (inflated price) insurance repair that includes the cost of a courtesy car for the owner while the repair takes place.
But the insurer can sell the car off as it is for £6,000.
So the insurer 'writes it off' as a Cat D, saving itself £500, even though the car may be perfectly drivable and suffers only cosmetic damage.
o Category F:
Vehicle damaged by fire and insurer has decided not to repair. When fixed can be re-registered as damaged repaired.
From the The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London E14 9SR
14. vehicles previously "written-off" and then repaired
Most buyers are (rightly or wrongly) put off by the knowledge that a vehicle was previously "written-off", no matter how well it was later repaired – and this can affect its value.
If the policyholder knew the vehicle was a repaired write-off, he/she is likely to have paid less for it. So we are likely to decide that it is not unfair for the insurer to make an appropriate deduction – not more than 20%, unless the insurer can provide good independent evidence for a higher deduction.
But if we are satisfied that the policyholder innocently bought (and insured) the vehicle in complete ignorance of its history, and the repairs were not obviously noticeable, he/she is likely to have paid full price (and a full insurance premium) for it. So we are likely to decide that it would be unfair for the insurer to pay less than the full market value.
So that it Cat D or C are only worth 20% less 20% MAX
Steve
o Category A:
Scrap only - this vehicle should be crushed. It should never reappear on the road and there are no economically salvageable parts. It is of value only for scrap metal - e.g. a totally burnt-out vehicle.
o Category B:
The bodyshell should be crushed. The vehicle should never reappear on the road, but it can be broken for spare parts plus any residual scrap metal.
o Category C:
Vehicle extensively damaged and insurer has decided not to repair. May be repaired and put back on the road. Has to pass an inspection costing £36 (2007 price) to be re-registered as damaged repaired.
o Category D:
Vehicle damaged and insurer has decided not to repair. When fixed can be re-registered as damaged repaired.
Think of Cat D like this example:
A Clio V6 is worth £13,000, but sustains some minor cosmetic damage.
The damage will cost £7,500 for an (inflated price) insurance repair that includes the cost of a courtesy car for the owner while the repair takes place.
But the insurer can sell the car off as it is for £6,000.
So the insurer 'writes it off' as a Cat D, saving itself £500, even though the car may be perfectly drivable and suffers only cosmetic damage.
o Category F:
Vehicle damaged by fire and insurer has decided not to repair. When fixed can be re-registered as damaged repaired.
From the The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London E14 9SR
14. vehicles previously "written-off" and then repaired
Most buyers are (rightly or wrongly) put off by the knowledge that a vehicle was previously "written-off", no matter how well it was later repaired – and this can affect its value.
If the policyholder knew the vehicle was a repaired write-off, he/she is likely to have paid less for it. So we are likely to decide that it is not unfair for the insurer to make an appropriate deduction – not more than 20%, unless the insurer can provide good independent evidence for a higher deduction.
But if we are satisfied that the policyholder innocently bought (and insured) the vehicle in complete ignorance of its history, and the repairs were not obviously noticeable, he/she is likely to have paid full price (and a full insurance premium) for it. So we are likely to decide that it would be unfair for the insurer to pay less than the full market value.
So that it Cat D or C are only worth 20% less 20% MAX
Steve
