Insurance
Salvage Catagories When
an insurance company decides not to repair a vehicle they will issue it with a
salvage classification category. Salvage categories were introduced in an effort
to curb vehicle crime in the UK. They were developed by the Association of British
Insurers (ABI) with the assistance of vehicle recyclers, the DVLA and the UK Police
Force.
The categories are as follows:
A - Not for resale.
Fire damaged (burnt-out), flood damaged (contaminated or salt water), severely
damaged with no serviceable parts, or heavily stripped (shell). Notification of
Destruction required. (To be crushed). Recorded at DVLA & HPI.
B
- Not for resale. Damaged beyond economical repair and/or severe structural
damage. Notification of Destruction required. (Parts can be removed and sold).
Recorded at DVLA & HPI.
C - Repairable salvage. Generally applies
to older vehicles. Can be sold for repair but must now have VIC inspection. Recorded
at DVLA & HPI. D - Repairable salvage. Minimal damage sometimes stolen and found
after claim has been paid, or cost of repair combined with difficulty obtaining
new parts to enable a swift repair. Recorded with HPI.
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X - Repairable salvage. Not
recorded on any registers such as HPI. Limited or very light damage, or vehicle
is new or less than 12 months old. Usually requires minimal repair work. NOT Recorded
with HPI. An insurance company faced with a claim first estimates the financial
cost of repairing the vehicle to its pre-accident condition. They may then say
it is a 'write off' or a 'total loss'. This may give the wrong impression to people
who are not familiar with the insurance or salvage industry. The cost of the repair
will be based on new parts prices and garage labour charges, often making it uneconomical
for the insurance company to carry out the repair. A person doing the work themselves
and sourcing recycled spares can often make the repair viable. If the financial
cost to the insurance company is the same or near to the market price, the insurance
company would normally call this vehicle a write off which means that they will
'write off' the financial cost of the repair, not the vehicle itself. The term
total loss is also often misused. It actually means the insurance company made
a complete financial loss, i.e. they recovered no money from the sale of the salvage
and therefore made a total financial loss on the claim. These terms have had quite
a bit of bad press due to their common association with unscrupulous dealers and
car thieves.
Whilst there are a few
cases where 'cut and shut' vehicles have appeared back on the road, at a professional
salvage dealers, they should use the category system to ensure that any vehicles
coming into our yard are disposed of in a proper manner and in accordance with
the category system requirements. It is the responsibility of scrappers to group
there salvage and notify the DVLA of what cars they have scrapped. This prevents
this cars identity being used again or being sold on itself by unscrupulous garage
owners to make a fast buck. A vehicle that has previously been issued with a C
or D salvage classification is not necessarily a bad vehicle to own or buy. Since
each vehicle over three years old has to pass a MOT test before it can be licensed
it should have been repaired to a good roadworthy standard. Obviously if you have
any doubts about buying a vehicle that has been previously repaired, you can ask
an independent motor engineer to inspect the vehicle before you buy it, or get
an AA or RAC inspection done. Don't forget, the biggest advantage to buying a
repairable salvage vehicle is the cost saving when compared to forecourt or dealership
prices.
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