- We explain what a write off is and why cars are written off
- Find out what Cat N, Cat C and Cat D mean
- And why you should not buy an insurance write off...
You’ve probably heard the term ‘insurance write-off’. You may even have had your car written off by an insurer before. But plenty of written off cars are fixed and put back on the road. It all depends on the type of write-off category these have fallen into.
What is a write-off?
Most people’s image of a write-off car probably looks like a heap of broken metal that’s only fit for the scrap yard. But a write-off could be a car that’s just sustained relatively minor body damage and is perfectly safe to drive if it’s repaired.
While both cars are technically write-offs - ‘declared a total loss’ in insurance terms - they actually belong to different categories.
Here we explain why cars are written off and what each of the four classes means to car buyers.
Why do insurers write cars off?
The whole reason we have insurance is to return a car to the condition it was in before it was damaged.
Having a car accident is expensive. The car has to be recovered and thoroughly assessed before it can be repaired. The repairs themselves can be quite costly. Even light cosmetic bodywork damage can be expensive for a garage to put right.
If a car is so badly damaged it can’t be repaired, it’ll obviously be declared a write-off. On cars that can be fixed, insurers work out whether the work is worth doing with a repair to value ratio. This varies from company to company and depends on the car involved too.
Cars can be written off for relatively light damage. If the car’s insured value is £2,000 and it’ll cost £1,500 to fix, the insurer will probably decide it’s not worth it. They’ll then act according to the category of write-off the car is in.
Category N
A motor in this class used to be known as a Category D car. This is the lowest class of insurance write-off and therefore the most likely to be fixed, put back on the road and sold.
Category N damage is non-structural. The only reason the car is written off is because the insurer doesn’t think it makes financial sense to fix it.
The insurance company will pay the owner what they’re entitled to. The car then belongs to the insurer, who will either sell it back to the original owner or put it into a salvage sale.
A Category N write-off isn’t always safe
Although a car may not have suffered structural damage, it still might not be safe to drive. A car could be written off because it’s suffered damage to its brakes, steering or airbags. If you’re buying any car that’s been written off it’s worth paying for a vehicle inspection. You should ask for a full history check to be done: some people may try to pass Category N cars off as undamaged.
Category S
Previously known as Category C, this is a class for cars that have been structurally damaged but can be repaired. Damage to these might include a bent or twisted chassis or serious damage to the car’s crash structure.
A Category S will need to be professionally repaired before it can be driven. As with Category N, the insurer can sell these cars back to the original owner or put them into a salvage sale. It makes sense to put any Category S car you’re thinking of buying through physical and historical checks.
Category B
These are cars that have been seriously damaged in a crash. The bodyshell must be crushed. However, any parts that are unscathed can be stripped off and used as spares for similar vehicles.
Category A
This is probably most people’s idea of a written-off car. It’s a car that has been so badly damaged that it’s not fit for anything apart from a final trip to the crusher. Even parts that don’t seem to be damaged must be destroyed.
Why buy an insurance write-off?
Category N and S cars are cheap, it’s as simple as that. A motor that’s been written off and repaired will cost much less than the same model that hasn’t been in a crash. You’ll be able to buy a car that you might otherwise be unable to afford.
Why not buy an insurance write-off?
Unfortunately, they are damaged goods. And with cars, any damage could be life threatening. There’s also the risk that whoever is selling the car isn’t going to be entirely honest about their car’s past.
Whether it’s a Category N write-off or a Category S vehicle, it’s vital you have a thorough inspection carried out by a reputable organisation. You don’t want to buy a car that you have to spend extra money on to fix or for it not to be entirely safe.
What about insuring a written off car?
Check with insurers before you hand over any money to buy a car that’s been written off. Insurers are cautious by nature. They want to be sure they’re not going to have to pay out on a hefty personal injury claim caused by the written-off car they’ve covered.
Some won’t cover write-offs at all. Others will make the premium you pay more expensive. Some insurers may even want to see an engineer’s report before they’ll cover a car.
See also:
Best cars with a seven year warranty
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