January 19th, 2010 → 6:23 pm @ admin // 3 Comments
which you are buying from a dealer which from a HPI report as shown it was written off in April 07 but now is repaired, it came up as cat D – which I found out means the car was worth more than the cost of repair, so Y would a insurance co. right it off?
darcydid
2 years ago
Category C or D write-off is one that insurers consider unecomonical (More than the cars worth) to repair but one that could, given enough time in the workshop, be repaired and returned to the road.
Category A and B should never be returned to the road. A Category B write off is one that is so badly damaged it can only be used for the salvaging of spare parts, while a Category A is one that is sent to the crusher
Anonymous
2 years ago
Say the “book value” of the car was £1000; it was badly keyed all round or something similar. The cost of repair, preparation and respraying in a bodyshop would have been £1300. The insurers aren’t going to spend more than the car’s worth to fix it, so they write it off and pay the book value to the insured. Result, they’ve saved £300. The car then becomes theirs.
Sometimes they will sell the remains back to the owner if he wants it, sometimes they will flog it at auction, sometimes they dispose of it for scrap – whatever they can get for it is more profit.
Now, if you happen to be a paint sprayer you could buy the remains for peanuts, fix it at cost yourself and sell it for a decent profit – there was never anything structurally wrong with the car, it was purely cosmetic damage.
That’s why Cat D write-offs happen, it’s purely a fiscal matter.
Anonymous
2 years ago
An insurance company would write (not right) off a vehicle when the costs to repair it are higher than the worth of the vehicle. Since you already found out that information, why are you asking?
It will always be a salvage (cat D) vehicle, which will always make it worth less if you want to sell, trade, or get compensated for damage, and it may be difficult to insure.