Total loss avoidance - how it could help save your car from being written off

Boasting 30 years in the accident repair industry at Castle Coachworks we understand how frustrating it can be for car owners when their vehicle is written off following a collision. As a manufacturer-approved repairer, we always try to encourage people to contact us first in the event of an accident so we can do our very best to help our customers get the results for their vehicles that they deserve. With access to total loss avoidance schemes through our approved manufacturers this could make the difference to the outcome. Find out how…

What is a total loss?

Typically, a vehicle is treated as a total loss (also known as a “write-off”) when the cost of the repair of the vehicle is higher than the actual cash value of the vehicle. This decision is largely down to your insurance company who will look at the market value of your vehicle at the time of your claim and deem whether it is viable for repair, or if it is better to settle your claim in another way, such as a cash settlement.

Why do motor insurers write off a vehicle?

Assessing the damage to your vehicle after a crash, your insurance company will be looking at the economic costs for them to repair in addition to the safety implications of returning your vehicle to the road.  As insurance companies are bound by strict guidelines, they have a duty to restore your vehicle to the pre-accident condition. Factored into this decision are the insurance assessor calculations that include the parts, products and the labour that the repair would involve, which can soon start to add up.

It is important to understand that this repair to value ratio can differ different from one insurance company to the next and also vary down to the age, make and model of the car you drive.

For example, if the market value of your vehicle is £5000 and they use a repair-to-value ratio of 60% then your vehicle would be deemed as not economically viable to repair if the repair works totalled more than £3000.

This is why drivers are often surprised when their vehicle’s are a write-off even with what appears in the first instance to be nominal cosmetic damage.

Why is my vehicle worth less than I thought?

Another shock to many drivers is how little the market value of their vehicle is at the time the claim.

When making this decision to repair or write off, your insurer will look at how much it would cost to replace your vehicle with one of the same age, mileage, specification and condition. These factors can have a significant effect on the value of other vehicles in the market.

Factors that can lower the value of your vehicle can include:

• Your mileage, is it higher than average? Then this could detract from its value
• Lack of, or an incomplete service history. Another reason why always pays to keep up with these vital health checks during your ownership. Our sister company CVS can help with this!
• If you have made any modifications to your vehicle
• The overall condition of vehicle if this is poor then this would also be another reason it could be valued at a lower price

Any one, or a combination of, these factors can mean the benchmark value of the car from your motor insurer will turn out lower than you think.

What are the car insurance write-off categories?

Insurance companies use a series of categories to rank the seriousness of accident damage for written-off vehicles:

CAT A – Write off / Scrap only vehicles. This category is for vehicle’s deemed so badly damaged that all parts even salvageable ones should be crushed and not return to the roads in any instance

CAT B – Scrapped for parts. The body shell of the vehicle is so badly damaged that it needs to be crushed, but some parts are salvable and can be reclaimed for use on repairs on other vehicles

CAT C – Substantial structural damage.  Cat S damage is beyond cosmetic and includes large structural repairs including things like a a bent chassis, impacted crumple zone and it will need to be professionally repaired as it is unsafe to drive.

CAT N – Non-structural damage. Vehicles graded as CAT N have sustained non-structural damage, this can be cosmetic damage or faults with electrics, brake, steering or safety-related parts.

Total loss avoidance schemes for approved body shops

As a manufacturer approved bodyshop, we have close relationships with the brands that built your vehicle. We purchase replacement parts directly from them as we are contractually bound to use genuine manufacturer parts (otherwise known as OEM parts) to repair the vehicle. We also have access to the manufacturer repair methods. This guarantees that each vehicle is correctly repaired back to the manufacturer standards. Using these parts and processes also helps ensure the safety element of your vehicle is covered for insurance purposes. lt also helps keep you safe in the event of another accident. You can rest assured that it will perform and protect as the manufacturer had intended it to.

How we can help!

If it looks likely that costly repairs will result in a vehicle being written off by your insurance company, our approved manufacturers give us access to additional discounts on these Genuine Parts through their total loss avoidance schemes. This can make all the difference to the repair-to-value ratio as it can help us get these repair costs below or closer to the write-off threshold. So, reverting to your approved repairer could make a significant difference to the outcome of your vehicle and whether it gets repaired or not.