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.
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.