Uk Salvage Car Insurance Categories
In the Uk, all damaged vehicles are defined as Motor Salvage and, after assessment, given an Insurance Category. It is vital to know the Insurance Category of any salvage reparable car before buying as this tells us much about exactly what is wrong with the car and what it may be used for thereafter. Do you want to buy to repair and sell at a profit? Or is your aim to buy and dismantle and sell the parts? The Motor Salvage Insurance categories are:
Motor Salvage Category A: You don’t want this! Categorised as a vehicle that has been totally wrecked (by fire, crash etc) and must be completely destroyed for scrap metal only. A notification of destruction (crushing) must be issued to the DVLA and HPI.
Motor Salvage Category B: Useful only if you are buying to dismantle and sell the parts. It has been written off but the body shell is beyond safe/economical repair and must be destroyed (as per Category A) The parts may be salvaged and sold however. Again, a notification of destruction must be sent to the DVLA and HPI.
Motor Salvage Category C: If you are buying a Salvage repairable car to sell at profit, Category C cars are suitable candidates. Such salvage cars are written off by an insurance company as the repair cost is higher than the value of the car - as far as the insurance company is concerned – not because they are total write offs. For those with the tools, skills and inclination, these cars are suitable for repair to make them roadworthy and saleable again. However, check you do have the skills to bring these cars back to service as they are on the border with only being useful for parts dismantling. It is now mandatory that Category C cars have a VIC inspection and the details of work carried out, recorded by the DVLA and HPI.
Motor Salvage Category D: Again, more particularly suitable for those of you looking for repairable cars to sell at profit. These are insurance write offs for other reasons even though the repair cost may be less than the cars value. A healthy profit may be made from repairing a Category D car. The work carried out to make the car roadworthy again must be reported to HPI only.
Motor Salvage Category X: These are usually undamaged cars or only lightly damaged and are usually recovered after being stolen. The profit made on selling a Category X car may be somewhat offset by the higher initial purchase price, but bargains can be picked up at police/customs auctions and the usual motor car auctions.
