1, 2, 3 as easy as A, B, S, N – Understanding an Insurance Write-Off

You know what they say: new year, new project car. Well, they might not say that but we certainly do. A new year represents a fresh start, a clean slate, a new beginning. Tabula Rasa. It’s the perfect time to start that project you’ve been thinking about for as long as you’ve had thoughts. Perhaps it’s been a life-long dream or maybe we’ve inspired you with our weekly Project Profile feature and last year’s Rover 827 redemption song. ‘Have no fear for ropey old classics, ’cause none of them can stop the desire for a good project’. But before you go diving into the Car & Classic classifieds, auctions and Verified Listings looking for a possible wrecks to riches revival we need to talk about insurance write-off categories. Did we just hear you groan? Yes, we know it may seem like a bit of a boring subject to kick off 2023 with but one who possesseth the knowledge of the various accident damage categories dished out by insurance companies may just scoop the bargain of the year while simultaneously side-stepping any car-shaped landmines. Many of us avoid the words ‘insurance write-off’ like the plague but it needn’t be that way and understanding the ins and outs of the subject could lead you to your dream car. You can thank us later.

So what exactly is a write-off?

If your car is damaged in an accident and your insurance company is involved then it could result in it being written off, which is essentially when the cost of any repairs exceeds the value of the car. But it’s not just metal on metal action that can lead to an insurance write-off. Any situation where your car becomes damaged can cause it to be categorised as such, whether that be through fire, flooding or any other instance where damage occurs. Your insurance company will carry out a full inspection of the vehicle to assess its roadworthiness. If it’s completely cream-crackered or the cost of repairs exceeds the value of the car then it will be classed as a write-off. But it’s not quite that simple, as there are four levels within that sphere of ‘total loss’: categories A, B, S and N. So let’s take a look at each in turn to help you better assess any potential projects before dismissing them entirely as non-starters, even though they may actually be non-starters. Ahem.

1) Category A (Scrap)

This is the worst case scenario in that the vehicle is deemed unsuitable for repair and must be crushed without any parts being removed. The vehicle identification number cannot be re-used and the V5 document cannot be re-issued. So, if your search for a new project uncovers any Category A status cars you should most definitely walk away as something fishy is going on. You may want to inform the Old Bill too.

2) Category B (Break)

Slightly less severe but the vehicle is once again deemed not suitable to be repaired and must still be crushed. The difference here is that while the bodyshell, frame and chassis must be destroyed, some parts can potentially be salvaged for use on other, roadworthy vehicles, but again, the VIN and V5 cannot be re-used. Like Category A above you should steer well clear of any vehicles categorised as B, unless you’re just pilfering parts.

3) Category S (Structurally Damaged Repairable)

Formerly known as Category C (repairable, but costs exceed the vehicle’s worth) a vehicle categorised as S is deemed as repairable but has sustained damage to some part of the structural frame or chassis. Damage can include a bent or twisted chassis or a crumple zone that has collapsed in a collision. In the instance of a Category S classification the vehicle can be repurchased from the insurer to be professionally repaired and put back on the road with the original VIN and V5 document.

4) Category N (Non-Structural Repairable)

Formerly known as Category D (repairable, but costs are less than the vehicle’s worth) vehicles classed as N haven’t sustained any structural impairment and so the damage will be confined to cosmetic issues or problems with, say, the electrics, for instance. It’s not just scratches and a couple of dodgy relays you should be concerned about, however. A vehicle can be categorised as N for other, more serious non-structural faults such as issues with the brakes, steering or other important, safety-related parts. Like Cat S vehicles they can be bought back from the insurer, repaired and driven on the roads once more.

See, that wasn’t so bad was it? And now you have the necessary know-how to approach any insurance write-off with confidence. There shouldn’t be anything to put you off buying a Cat S or Cat N vehicle as long as you carry out your due diligence. Always get a full vehicle history check – they’re inexpensive and can save you not only money but heart ache too. It’s also necessary to ensure that any repairs have been carried out professionally and fully documented. There is huge potential for bargains within the write-off realm but it works both ways – the insurance write-off category stays with the car for life so bear that in mind if you plan to sell the car on. Whatever you choose to do good luck out there and happy hunting.