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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.
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