Situation in which my vehicle is a write off?
A write off car is when the vehicle is beyond economical repair. It may have a cost exceeding a definitive threshold/percentage of the pre-accident value of your vehicle. You will be provided with the fair market value for your vehicle. Usually, the vehicle is severely damaged in Non fault accident because the collision is unexpected by the driver. Poorly damaged vehicles come under various write off categories of insurance.
There are 4 write off categories of total loss – Cat A, Cat B, Cat S and Cat N
Category A vehicles cannot be are the most serious grade and cannot legally be put back on the road. These vehicles must be scrapped in their entirety, with salvageable parts also crushed. Cat A vehicles must be disposed of at specific scrapyards licensed to ensure proper disposal of all parts.
Category B vehicles are commonly known as “breakers” similar to Category A. Once a Category B is placed on your vehicle it should never be allowed back on the road. However, salvageable parts can be removed from the vehicle. They can be later used for other vehicles as green parts which are safe to the environment.
Category S is often placed on vehicles which have sustained structural damage. The costs to repair the vehicle exceed the threshold percentage of the pre-accident value of your vehicle.
Category N is placed on vehicles which have sustained non-structural damage. The issue could be to do with the electrical components of the vehicle. Such as the body panels and lights which need replacing. However, the repair costs exceed the threshold percentage of the pre accident value of the vehicle.
What if I am unhappy with the valuation – can I open a dispute?
Yes! In case of unfair valuation of your vehicle, our specialists can assist you to open a dispute against your insurer. To support your case, you will need to of course provide evidence of similar vehicles. The evidence should include details such as similar mileage, transmission, condition, and year of manufacture. It should have reputable source of website such as Autotrader. The car insurance industry do not recognise Facebook and Gumtree markets.
Will the insurer give me the full value for my write off car?
Some insurers will place a lower value on your vehicle to save costs on their side. They will leave you without any recourse if you choose to dispute their valuation. Sadly this happens more time than it should in a situation of write off car. If you are unfamiliar with your rights and the processes you will be at a financial loss. In fact, you may end up incurring further costs if you choose to independently dispute the valuation.
At Hammonds Fleet Care, our specialists guarantee that you will receive the fair market value for your vehicle. If the insurer undervalues your vehicle, our experts will work with you to explore all options. They will initiate a dispute in your favour and also guide you through this. Ultimately the decision to increase the valuation lies with the insurer and the evidence you gather. However, we are here to help you along the way and manage your expectations.
Finance outstanding and written off car situation
For a financial settlement letter, you will have to contact the finance company. The details of vehicle registration and agreement number may be available in your email records.
After arranging the financial settlement letter, we will finalise the finance on your write off car at earliest. It is their asset until the monies outstanding are paid and should there be anything left over, this will be paid to you. You can then arrange finance on a new vehicle or ask your existing finance provider to set up another agreement for you on a new vehicle. Its as simple as that!
What is GAP insurance?
GAP is the short form for Guaranteed Asset Protection. There are several different types of GAP insurance which you can take out. The primary purpose of GAP insurance is to provide clients with protection against financial burdens. The GAP insurance covers the difference between the total loss value of the vehicle and what you owe the finance company.
For example – if you have purchased a vehicle for £15,000 and the insurer placed a market value of £10,000 on the vehicle, depending on the type of cover you have, the GAP insurance could cover the difference which is £5,000. Below we have out
Return to invoice – Your compensation is guaranteed for the difference between the purchase price of your vehicle and the value set by the insurer following the vehicle being written off. For example, if you bought the vehicle for £17,000 and the insurer values it at £15,000, the GAP insurance will reimburse you the £2,000 to cover the value of your original invoice.
Vehicle replacement GAP insurance – this will cover the GAP between the total loss value the insurer places on the vehicle and the cost of purchasing a replacement vehicle. For example, if you buy a car from a dealership for £20,000 and the insurer values it at £15,000, but the cost to replace it with a like-for-like replacement vehicle is £18,000, GAP insurance should cover the £2,000 difference or pursue the responsible insurer for a further increase. However this is dependent on the level of cover on your GAP and it is always best to read your terms and conditions as there are different levels of cover for GAP.
**Please note you may have an excess on your GAP cover and you will have to speak with a legal representative to establish if this is a recoverable loss**
