Insurance Companies’ Write-Off Categorisations
for Accident-Damaged Vehicles

Total Loss Value, Salvage, Scrappage or Repairable

What are Car Write-Off Categories?

A car insurance write-off happens when a vehicle is too damaged to repair safely, or the repair cost exceeds its market value. It can result from accidents, fire, or flood damage.

Insurers make this decision using a “repair-to-value ratio,” typically 50% to 60%.

Example: If a car’s market value is £10,000 and repairs exceed £5,000, it is deemed a write-off. Instead of repairs, the insurer pays the car’s market value before the damage occurred.

This guide explains what an insurance write-off means, how insurers classify vehicles (Cat A, B, S, and N), and the factors like accidents or flood damage that determine these classifications.

It outlines the essential steps after a vehicle is declared a write-off, including notifying the DVLA and handling your V5C logbook. Additionally, it provides practical advice on buying, selling, or repairing written-off cars, helping you make informed decisions about Cat S or N vehicles.

How are Write-Off Categories Determined?

Car Insurance Write-Off Categories Explained

Cat A Car Meaning

A Category A write-off means the vehicle is so severely damaged that it cannot be repaired or reused. All parts, including salvageable components, must be destroyed. Examples include cars damaged beyond recognition in extreme accidents or severe fires. These vehicles are permanently scrapped and cannot reappear on the road.

Cat B Car Meaning

Category B refers to vehicles that are not roadworthy and must never be driven again. However, salvageable parts, such as engines or electronics, can be removed and reused. The vehicle’s body shell, though, must be crushed. For instance, a car with extensive flood or structural damage may qualify as Cat B, ensuring only undamaged parts reenter the market.

Cat S Car Meaning

Category S (formerly Cat C) applies to vehicles with structural damage requiring professional repairs to ensure road safety. Examples include bent frames or damaged chassis from collisions. Once professionally repaired, these vehicles can be re-registered and safely driven again. The shift from Cat C to Cat S emphasises structural integrity in classification.

Cat N Car Meaning

Category N (previously Cat D) involves vehicles with non-structural damage. This can include faulty electrics, broken windows, or significant cosmetic issues. Despite being roadworthy after repairs, the cost of fixing them often exceeds their market value, leading to their write-off status. The transition from Cat D to Cat N reflects a refined focus on non-structural safety.

Cat C Car Meaning

(Category replaced by Cat S)
Previously, Category C referred to vehicles where repair costs exceeded their pre-accident market value, often due to structural damage. Today, these vehicles fall under Category S, ensuring clarity in assessing structural safety. Owners should verify repairs are done professionally before putting these vehicles back on the road.

Cat D Car Meaning

(Category replaced by Cat N)
Category D used to classify vehicles where repair costs were less than the car’s market value but still uneconomical for insurers. These cars, often with non-structural damage, now belong to Category N, highlighting their roadworthiness post-repair. The updated terminology better reflects non-structural issues like electronics or cosmetic damage.

Additional Context

1. How Does an Insurer Decide on a Write-Off? Insurers use a “repair-to-value ratio” to classify write-offs. If the cost of repairs exceeds a percentage of the car’s market value (typically 50–60%), it is declared a total loss.
2. Can I Challenge the Insurance Decision? You can dispute the valuation if you believe your car’s value or repair costs have been miscalculated. Seek an independent valuation to support your case.
3. Are Write-Off Categories Shown on the Logbook? Yes, for Categories S and N, the DVLA records the write-off status on the vehicle registration document (V5C).
4. How Can I Check if a Car is a Write-Off? You can check your vehicle history or ask the DVLA for details on your car status.

The video below explains each salvage break classification:

What Happens When a Car is Written Off?

Written-Off Cars on Finance and Negative Equity

If your insurance payout is less than the amount you owe to a finance company, you are responsible for covering the difference. This negative equity shortfall can be mitigated using Guaranteed Asset Protection (GAP) insurance, designed to cover the gap between your outstanding finance balance and the insurer’s payout.

Key Steps to Manage Negative Equity:

1. Obtain a Settlement Figure: Request a settlement letter from your finance provider. This figure is usually lower than the total finance agreement since it excludes future interest charges.
2. Consider GAP Insurance: GAP insurance will bridge the financial shortfall, reducing or eliminating the amount you must pay out of pocket.
3. Review Your Options: Without GAP insurance, you must pay the remaining balance directly to the finance company.

What Happens to My Private Number Plate When My Car is Written Off?

If your car is written off, inform your insurer immediately to retain your private registration plate.

Steps to Retain Your Private Plate:

1. Apply Online: Use the UK government website to begin the retention process.
2. Provide Logbook Details: You’ll need the 11-digit reference number from your V5C (vehicle logbook).
3. Pay the Fee: The retention fee is £80.

Once your application is approved, your private plate is assigned to another vehicle or held on a retention certificate.

Do I Get an Insurance Policy Refund Once My Car is Classified a Write-Off?

No, you will not receive a refund on your insurance premium after your vehicle is written off and a payout is issued. If you pay your insurance monthly, you may need to honour contactural repayments.

Here’s what to consider:

• Cancellation Terms: Insurers typically charge an administrative fee if you decide to cancel your policy early. Check your policy’s terms to understand any penalties or adjustments.
• Transfer Options: Some insurers may allow you to transfer the remaining policy to a new vehicle, potentially avoiding unnecessary payments.
  It’s essential to communicate with your insurer promptly to clarify any refund eligibility.

It’s essential to communicate with your insurer promptly to clarify any refund eligibility.

Should I Buy Back My Cat S or Cat N Category Car From Insurance?

Deciding whether to buy back a Cat S or Cat N car from your insurer is a personal choice, but here are key factors to consider:

Key Considerations:

• Cost: You’ll pay significantly less than the market value to buy back your car.
• Repair Costs: Review the insurer’s assessor report to understand the repairs needed to make the car roadworthy.
• Repair Arrangements: Secure a reliable accident repair centre and be prepared to keep the car off the road.
• Category Impacts:
  • Cat N Cars: Usually cheaper to repair, requiring minor fixes like replacing non-structural parts.
  • Cat S Cars: Require professional structural repairs and re-registration with the DVLA.

If Selling the Car:

• Run a Car Write-Off Check and declare the category status in advertisements and during discussions with buyers.
• A private sale may yield a better return but requires upfront effort and transparency about the car’s history.

Keeping the Vehicle – Process:

• Repairs must be professional, but using second-hand parts can save money.
• After repurchasing the car, send the full V5 logbook to your insurer.
• Complete a V62 application form for a duplicate logbook. The DVLA will update the vehicle registration to reflect its category (S or N).
• Retain the logbook if keeping a Cat N car; no pre-registration is required.

While buying back your car can be cost-effective, it involves managing repairs and potentially increased insurance costs. For those seeking a quick profit, consider the time and resources needed to repair and resell.

Should I Buy a Cat S or N Car?

Cat S and Cat N cars are the only write-offs that can legally return to the road after being repaired. While they can be cost-effective, they require careful consideration to avoid potential pitfalls.

Key Points to Consider:

1. Lower Cost: Cat S and Cat N cars are typically priced below market value for similar undamaged vehicles, making them appealing to budget-conscious buyers.
2. Permanent Write-Off Marker: The write-off classification remains indefinitely based on the vehicle’s history, which can affect resale value and buyer interest.
3. Insurance Implications: Insurers may charge higher premiums for Cat S or Cat N cars due to their damage history. It’s crucial to check insurance costs before purchasing.
4. Types of Repairs:
   • Cat S (Structural Damage): Repairs involve addressing critical structural issues. Ensure work has been done professionally and complies with safety standards.
   • Cat N (Non-Structural Damage): Repairs typically involve less severe issues, such as cosmetic damage or minor electronics, which are often less expensive.
5. Resale Challenges: Selling a car with a write-off history may prove more difficult, even if fully repaired, as some buyers remain sceptical.

Practical Advice for Buyers:

• Always perform an online vehicle history check to confirm the previous damage and the quality of repairs.
• Request proof of repair work, such as invoices and certifications, to ensure the car is roadworthy and compliant with regulations.
• Consider additional costs, such as higher insurance premiums and the potential difficulty of reselling the vehicle.
• Conduct a thorough test drive to identify any remaining issues from the damage.

Buying a Cat S or Cat N car can be a practical, affordable option, but it requires due diligence. Before making a purchase, ensure the repairs meet safety standards, assess long-term costs, and verify the vehicle’s suitability for your needs.

How to Remove Cat N Car Insurance Category Write-Off Marker?

You cannot remove a Cat S or Cat N Total Loss damage category from a vehicle. Once a car is assigned a write-off marker, it becomes a permanent part of its history. The marker indicates the car’s status as a write-off due to structural (Cat S) or non-structural damage (Cat N). Classification ensures transparency for future buyers and insurers, reflecting the vehicle’s repair history and safety status.

Key Considerations:

• Legal and Safety Implications:
  The write-off category is recorded on the vehicle’s logbook (V5C) and cannot be erased, regardless of repair quality. This system ensures road safety and prevents misrepresentation.
• Impact on Resale and Insurance:
  • Write-off categories significantly reduce a vehicle’s market value.
  • Insurers may charge higher premiums for cars with Cat S or Cat N markers due to perceived risks.
• Buying or Selling a Categorised Write-Off Vehicle:
  If you’re buying or selling a car with a write-off marker, declare the category openly to maintain legal compliance and trustworthiness.

Frequently Asked Questions

Can a Third-Party Insurer Classify My Car a Write Off?

Yes, a third-party insurance company can declare your car a salvage write-off. If allowed, you can negotiate a valuation settlement and choose to purchase the damaged vehicle.

Can I Choose Who Repairs My Car?

Yes, you can decide who repairs your vehicle. You may also arrange for an independent engineer to inspect the car before repairs begin. If the vehicle is written off, you must wait for the settlement to repurchase it from the insurer.

How Much Does Cat N Total Loss Devalue a Car?

A Category N write-off can reduce the car’s value by 25% to 50% compared to an undamaged equivalent. The extent of devaluation depends on factors like make, model, age, mileage, and condition.

What is the Car Insurance Cash Settlement Option?

A cash settlement is when your insurer offers a monetary payout instead of repairing or replacing your vehicle. This amount is based on the vehicle’s valuation in the insurance write-off category claim.

Where Can I Find the Best Cat N Car Insurance Quotes?

Compare Category N insurance quotes on Compare the Market, Confused.com, or GoCompare. Alternatively, consult an independent insurance broker for tailored advice.

Can You Put a Cat A Accident Damage Category Car Back on the Road?

No, a Category A car cannot be returned to the road under any circumstances. These vehicles are deemed beyond repair and destroyed.

Can You Put a Cat B Car Back on the Road?

No, a Category B car cannot be roadworthy again due to severe damage. However, its salvageable parts may be reused.

Are All Total Loss Category Cars Sent to Salvage?

No, not all written-off cars are sent to salvage. Category S and N vehicles can be repaired and returned to the road, while Categories A and B must be destroyed.

What are Cut-and-Shut cars?

Cut and shut refers to the illegal practice of welding parts of two damaged vehicles to create a single car. This practice is unsafe and illegal.

What to Do with V5 When a Car is a Write-Off Category?

When your car is written off, notify the DVLA and send the V5C registration document to your insurer. Retain a copy for your records to avoid potential fines.

Are Car Insurance Damage Categories Displayed on the Logbook?

Yes, the V5C registration document will note the salvage category for repaired Category S and N vehicles.

Does a Cat N Grouped Car Need a New MOT?

No, a Category N car does not need a new MOT if it already has one. However, getting a fresh MOT test is advisable to ensure the car’s roadworthiness after cosmetic repairs.

Can I Check the Insurance Status of a Vehicle at the Time of the Accident?

Yes, you can check a vehicle’s insurance status using the Motor Insurance Database (askMID). CarVeto’s Vehicle Registration Verification also includes insurance checks.

Are All Car Accidents Recorded as Insurance Write-Off Categories?

No, not all accidents result in a write-off. Minor collisions often lead to repairs without involving write-off classifications or insurance companies.

Are Motorcycle Write-Off Categories the Same as Cars?

Yes, motorcycle insurance write-offs follow the same classification system as cars, using Categories A, B, S, and N.