If you have ever been involved in an accident and the car suffered significant damage, the insurance might classify the car as a “write-off.” But what does that mean, and how does it impact you as a car owner? This article explains what a “write-off” is, the different categories they put into, and what options you have if your car falls into one.
What Does It Mean When a Car Is Written Off?
An insurance write-off occurs when an insurer decides a vehicle is too damaged to repair because the repair costs exceed a percentage of its value. This threshold is typically 50% to 60% of the car’s market value in the UK.
For example, if your vehicle is worth £10,000 and your insurer uses a 60% repair-to-value ratio, it would be written off if repairs exceed £6,000.
Why do Insurers Declare the Car as a Total Loss?
Car insurance companies have a duty to restore a vehicle to its original condition after an accident. However, in some cases, this becomes too expensive, and the vehicle is written off.
Insurers have their way of determining a total loss based on these several factors:
- The repairing cost versus the vehicle’s pre-accident market value
- The availability of replacement parts and labor costs
- The car’s safety after repair
- Legal and insurance guidelines for damaged vehicles
If the car is considered unsafe to be repaired beyond economical repair, it can be put as a “write-off.” However, not all written-off cars are destined for the scrapyard; some can be repaired and driven on the road.
What are the Car Insurance Write-Off Categories?
The UK car industry classifies write-off categories into four: A, B, S, and N. These categories determine the level of damage the car has and whether it could be repaired or should be scrapped.
Category A: Severe Damage and Should be Destroyed
Vehicles with severe damages are termed Cat A cars. Cars in this category are beyond repair and should be scrapped entirely since they cannot be used in any form. Even the salvageable parts in this car should be scrapped. These vehicles are usually burnt out or crushed and must be sent to a licensed scrapyard for complete destruction.
Category B: Major Damage, Only Parts Can be Salvaged
Cars put into Category B (Cat B cars) have suffered extensive damages that make them unworthy of being driven on the road. However, unlike the cars in Category A, some parts can be removed, salvaged, and resold in Category B. The car’s body must be crushed, ensuring the vehicle will never return to the road.
Category S: Structural Damage but Repairable
A Category S write-off (formerly known as Category C) means the car has suffered structural damage and could be repaired safely. This includes damage to the chassis or crumple zone that needs to be repaired professionally. The car that has been put in the S category can be driven safely on the road. However, these cars must be re-registered with the DVLA before returning to the road.
Category N: Non-structural Damage, Roadworthy After Repairs
Category N (previously Category D) covers vehicles without structural damage. Instead, issues may involve electrical systems and cosmetic damage. These cars are safe to drive after they have been fixed, but the damage can be a concern, and it might still be noticeable. Buyers should always conduct a thorough vehicle history check before purchasing a previously written-off car.
READ ALSO: How to Check Car Category In The UK
How Do Insurers Decide A Car's Write-Off Category?
The classification of a write-off depends on several factors, including:
- Damage severity
- The cost of repairs compared to the market’s value
- The safety risks involving the car that could affect the driving experience and safety
- The potential safety resale value after repair
The insurance inspector inspects the vehicle and determines the appropriate category based on industry standards. Their decision influences whether the car is scrapped, repaired, or resold. Check the insurance write-off report to avoid buying a car marked as a “write-off” by insurance.
Can You Keep or Buy Back a Written-Off Car?
Some of the written-off cars can be repaired and driven again, but strict governing rules determine whether or not they can be driven on the road:
- Category S and N cars can be repaired and re-registered if they pass a roadworthiness check. Owners wishing to keep their written-off cars must notify the DVLA and insurer.
- Category A and Category B cars cannot be returned to the road under any circumstances. Category B cars may have salvageable parts, but the vehicle must be scrapped.
READ ALSO: How to Check If a Vehicle Has Been Scrapped
Check the Car’s Insurance History Before You Buy
When you think about buying a used car, check everything thoroughly, including the insurance status. It might have been put as a “write-off” because some sellers might not be disclosing the vehicle’s status. Still, it’s always recommended that you check it yourself. Buying a “written-off” car can be risky, as it could put your safety at risk when driving the car on the road.
Before you take the car home, you must check the car’s history report to see if it has ever been written off and what category it belongs to, so you don’t risk yourself and others.
Conclusion
Insurance write-offs can happen for many reasons, including an accident beyond economical repairs. Understanding the differences for each category, such as the A, B, S, and N categories, can help owners and buyers decide whether to buy the parts or just scrap the car completely.
Whether you’re considering keeping a written-off vehicle or buying one, always check the car’s history to avoid hidden problems. Use a reliable service like Smart Car Check to verify a car’s write-off status and protect your investment.
Frequently Asked Questions
What is considered major structural damage to a car?
Structural damage harms the car’s frame and core support, ranging from obvious dents to hidden defects affecting how the vehicle drives. These signs, whether large or small, indicate the need for a frame inspection.
How much did the insurance pay for my totaled car?
If your car is totaled due to an accident, the insurance will pay the pre-accident ACV minus the deductible. On top of that, you get to choose if you want to repair or keep the car at your cost.
What does CAT mean in insurance?
In insurance terms, the CAT is an abbreviation for “catastrophe”. A catastrophe is a major loss characterised by extreme force or sizable financial loss.
Which cat is better, N or S?
Category N is generally better because it only involves non-structural damage, making repairs easier and safer. Category S cars have structural damage, which requires more extensive repairs and professional assessment before they can be safely driven again.
What's the difference between Cat N and Cat D?
Category N refers to non-structural damage, meaning the car is repairable without affecting its core safety features. Category D (now replaced by Category N) meant the car was repairable but was written off due to associated costs, such as recovery and administration fees.
