everything you need to know about insurance cancellations. click to quickly access the information that interests you most.
- what is a write-off or total loss?
- How does an insurance company decide if a vehicle is worth repairing?
- cancel categories
- How is a total loss claim settled?
- what is the market value?
- Can you dispute the settlement figure?
- Can I buy back my canceled car?
- your car is too damaged to be safe to get back on the road, or
- the cost to repair exceeds the market value of the vehicle or is disproportionate to its value, or
- the vehicle has been stolen and is never recovered
- information from reputable valuation guides such as parkers or the glass motoring guide
- service history logs
- evidence from an independent engineer
- relevant data such as particularly low mileage
- testing of new parts, new tires, etc.
- supporting information to justify the value of a rare or modified car, which is more difficult to calculate from prepared guides.
what is a write-off or total loss?
If your car has been involved in an accident, your insurer may tell you it’s a “write-off.” Other phrases you may hear include “total loss” or “beyond economic repair.”
all mean basically the same thing. either:
How does an insurance company decide if a vehicle is worth repairing?
Car insurance companies employ vehicle assessors whose job it is to inspect damaged vehicles. they have the experience to judge the overall condition of your car and assess the cost of repairing it. They will also assess whether your car can be made safe enough to be roadworthy again.
When evaluating whether repair costs are affordable, insurers use a repair-to-value ratio. this could vary between different companies, and even between different cars. As an example, if an insurer’s repair-to-value ratio is 60:40, and repairs to a car valued at £5,000 are £3,000, the vehicle would be considered written off.
Because the extent of damage to a written-off vehicle can range from fairly minor to very serious, there are four different categories of write-offs. the insurance advisor will classify your car into one of these categories.
the vehicle is so damaged that it should never be driven on the road again. the last trip for a cancellation category is to the junkyard, where even salvageable parts will be destroyed.
A category b scrap has been extensively damaged and should never be driven again, but while the bodywork may need to be crushed, some salvageable parts can be reused on other vehicles.
Category C cars have been written off by the insurer as uneconomical to repair based on their repair-to-value ratio, but they’re not so damaged that they can’t get back on the road if someone else is willing. to perform repairs.
the vehicle can be repaired, but the costs would be significant compared to the value of the vehicle, including delays in the supply of parts. category d cancellations may respawn down the road.
How is a total loss claim resolved?
If your car is deemed to have been written off after an engineer’s inspection, your insurance company will offer you a settlement price. the figure is based on the current market value of your car (immediately before the accident) and will take into account its general condition, age and mileage.
what is the market value?
Don’t make the mistake of assuming that because you bought your car for £8,000 three years ago, your insurance company will pay £8,000 on a total loss claim.
The value of most cars depreciates as they age. Some adjustments will be made for cars in particularly good or poor condition for their age, or for low or high mileage, but the most your insurer will pay is the value of your car today, i.e. the current market value.
can you dispute the settlement figure?
Insurers will do their best to make you a fair offer, but if you really think it’s too low, you can challenge it. You will need evidence to support your claim, which may include:
Can I buy back my deregistered car?
if your vehicle is category c or d, you may be able to buy back your car after reaching an agreement with your insurance company. once your claim is settled, the vehicle becomes the property of the insurance company, an asset they can choose to dispose of in any way they choose.
You should express your interest in buying the vehicle back as soon as possible and then stay in close contact with your insurer to negotiate a settlement. Unless you’re acting solely out of an emotional attachment to the vehicle, make sure you’re fully informed of the cost of repairs before you buy back your canceled car.
Call us on 0333 400 7365 to discuss a claim.