How To Sell An Insurance Write Off: Explained

Oh, dear! Here at Scrap Local, we hate hearing about people involved in an accident, with safety a priority.

If your vehicle has been in an accident or is damaged and faulty beyond repair, it may now be an insurance write-off.

Insurance write-off vehicles can be sold/scrapped, depending on the insurance category. If a CAT A, the car can only be crushed, whereas CAT B, CAT S and Cat N vehicles can be salvaged and sold to a licenced vehicle buyer.

Please read below to find out what insurance categories they are, how to determine the value and the problems of trying to sell yours online.

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What Is An Insurance Write-Off?

Insurance writes off are vehicles involved in a recent accident or have sustained extensive damage where the vehicle is unsafe to be driven on public roads.

These types of vehicles are often viewed as ‘’Beyond Economical Repair’’.

An insurance company or finance provider must first inspect the vehicle to be classified as a write-off. From here, your finance/insurance company will check any damage with an estimated prediction of the cost to repair.

If the vehicle damage exceeds 60% of the value, the car will be viewed as uneconomical for repair and will be issued one of the many insurance write-off categories.

Below you can view the differences and definitions of each insurance write-off category.

Insurance write-off categories

Category A - Scrap

Cat A vehicles have been damaged excessively, so they can’t be reused or salvaged. Such vehicles are only ever destined for the scrap heap.

These vehicles can also include those involved in a fatality, whereby they can only be crushed.

In addition, excessive fire and flood-damaged vehicles may also be classed as Cat A upon inspection and will await the same fate.
Category B - Break

Cat B Vehicles, on the other hand, are typically broken and damaged beyond standard repair.

Although, unlike Cat A vehicles, these can be dismantled (by a licenced car breaker) and salvaged for car parts, supporting the circular economy of vehicle recycling.

It’s important to know that for a vehicle to be classed as category B, it must have its crumple zone intact. This is the area where the engine is found.
Category N - Non-Structural Damage

Replacing Category D, Non-structurally damaged vehicles, on the other hand, are typically lower on the damaged/broken car assessment.

Such vehicles typically have your usual wear and tear and can be salvaged, if not repurposed, back on the road.

Instances of wear and tear can include electrical and cosmetic components, which yet are not beyond economical repair, are typically seen as not the most economical to do so.

A situation could be where your vehicle was in a severe collision with high front-end damage.

Your insurance provider will assess this as a Cat N, where you could find a suitable buyer to salvage other components such as the wheels, body panels and gearbox/clutch. The rest may just be scrapped for its metal value.

These vehicles are considered safer compared to other categories, although it’s important to note that specific non-structural faults can make the car unsafe to drive in the future.

Not to be overlooked as just a simple fix’, certain repairs can be costly, with high demand in time, energy (and more importantly, money) required.

For example, if your vehicle has been affected in a minor impact collision, your steering or brakes may be affected when its long-term use is questioned. Not ideal!
Category S- Structural Damage

Structurally damaged vehicles are standard due to many cars involved in collisions on UK roads.

These can often be salvaged, although they may hold a slightly lower value due to damages to main vehicle components, such as shell/chassis, front and rear bumper, and drivetrain.

The Value Of An Insurance Write-Off

Understandably, the insurance write-off value of your vehicle is vastly determined by a few factors.

Firstly, without question, the category type of your insurance write-off is a determining factor. As mentioned above, if your vehicle is a Cat A, it would only ever be scrapped, and as such, you will only receive the metal value for the vehicle.

Cat S Car Value

On the other hand, if your vehicle is a Cat S, it may present some potential to be salvaged and repurposed for its parts. However, the cost of labour, time and, ultimately, effort will be a consideration for the buyer.

If the vehicle has excessive damage to major components such as the engine, gearbox or clutch, this may also steer away potential buyers.

Cat N Car Value

In addition, if your vehicle is a Cat N write-off, it may be desirable enough for a suitable salvage buyer. As such, you could receive a strong offer for your vehicle.

The age, vehicle brand, condition and mileage will be factors here. This is because specific, older vehicles (even if a cat N) may not be a viable option for a car breaker or used car dealer to purchase and fix. This may be the case even if your vehicle starts, drives and has four alloy wheels.

Breaking down the components of an insurance write-off valuation

Certain factors determine the value of scrap cars and salvage vehicles, and you must understand these to the point of sale or interest. You can read more on scrap car value with our complete guide.

Stating what’s wrong with your vehicle will only allow you to receive the best value for your write-off car.

However, failure to mention these to potential buyers may result in a loss of sale or even legal action.

Selling a Write-off Car: How To Get The Best Price

Selling a write-off car should be a walk in the park, right?

You may be in for a shocker!

As with most car sales, it’s important that you, as a buyer, are transparent with what issues your vehicle has.

To receive the best prices for your insurance write-off, you must provide certain details about the vehicle.

This can often be better explained and shown in images, videos and a phone call. Going around the vehicle and taking clear front, side, rear, and interior pictures can reel potential buyers.

Moreover, if your vehicle has been previously on finance, this must be made clear as it can drastically affect the price received. It is common for most buyers to complete an HPI check for your vehicle, ensuring they are covered in all legal aspects.

Selling An Insurance Write-Off Car On Finance

If your vehicle is an insurance write-off but was previously on finance, you may need clarification on your options.

Luckily, you do have some headway when selling a car on finance. Follow the steps below to get started.

Firstly, and more importantly, you must present confirmation and agreement from your insurance/finance provider that they are happy to release the interest of the vehicle.
You must send over an offer for a vehicle against the total amount owed. Permission must be shown in writing.
You will then arrange payment for the remaining finance between your provider and yourself, as they will provide all terms and conditions.
Upon accepting the offer, you will then have to provide the bank details of our finance/insurance company, often included with a reference number.
As your fiance provider releases all interest from the vehicle, you can proceed to sell your write-off!

Problems with selling an insurance write off car Online

Selling a write-off online may be easy, but it’s essential to be mindful of a few drawbacks when listing your insurance write-off for sale online. Below are some common reasons to consider:

Selling your insurance write-off privately – To sell your insurance write-off for cash may seem tempting. However, it must outweigh the time, effort and costs associated.

Most online marketplaces charge fees to sell your write-off. In addition, achieving interest or a sale may take weeks, if not months. Additional promotions, such as boosted listing, often cost extra.

Selling your insurance write-off on social media – Receiving interest for your insurance write-off online, such as popular social media sites like Facebook, may also seem like a good idea. However, it’s essential to realise that you must do your due diligence with all the tyre kickers and ‘rogue’ wheeler dealers.
Trying to sell your insurance write-off for Cash – Another tempting method to sell your write-off quickly, chasing a quick cash payment for your insurance write-off may raise alarm bells for potential buyers. As a seller, you must accept that such transactions are often in the grey and may not provide an audit trail for your reference. As such, looking for a quick cash buyer, who isn’t a licenced salvage dealer, may not be the best option.

Insurance Write-Off Car For Sale? We Can Make It Happen!

Scrap Local’s salvage buyers can offer you great prices if you’re looking to sell your insurance write-off car. Whether your vehicle falls under category N or category S, our licensed car breakers and scrap yards can handle the hassle of selling a damaged car privately.

You won’t have to worry about auction fees or long waiting times, as Scrap Local will collect your car for free from your home or garage. We’ll also provide quick payment and paperwork to follow.

Even if your vehicle is on finance, our professional team can help you with the paperwork and work with your insurance/finance provider so that you can sell your written-off car regardless of your situation. Selling your car with Scrap Local is easy!

To see how much your write-off is worth, contact our team today for a guaranteed price with no hidden fees.

Questions On Selling An Insurance Write Off

We hope our complete guide explains the process of selling a write-off.

For further reference, you can recap more info for insurance write-off with our guide on insurance write-off categories, how to sell a damaged car or our complete guide on selling a car for salvage.

We also have a dedicated FAQs section for more useful info if you need it.