What is a Cat A, B, S or N Insurance write-off? | RAC Drive (2024)

If you’ve been involved in a car crash or road accident then you might be informed by your car insurance company that your vehicle is a 'write-off'.

But what exactly does the term 'write-off' mean? Can you legally drive itafterwards? And should you ever buy a 'write-off' car?

In thisknow how guide, weexplain what a 'write-off' is, plus the important differences betweenCat A, Cat B,Cat S and Cat N insurance write-off categories.

What is an insurance write-off?

An insurance write-off is industry jargon for a car that’s either: sustained so much damage it’s unsafe to go back on the road, or it is still safe to drive but is beyond economical repair.

If your car has been deemed unsafe, theninstead of being repaired the owner will receive a cash payout for the loss.

An uneconomical repair, however,is based on a repair-to-value ratio which can be different for each insurance company and car.

So, if your vehicle was worth £5,000 and your insurance company used a repair-to-value ratio of 60%, the vehicle would be considered beyond economical repair if the work needed exceeded £3,000.

Car insurance companies employ vehicle assessors to calculate the cost of repairs and make this judgement.

They will inspect the overall condition of your vehicle and analyse the collision damage.

Why do cars get written off?

What is a Cat A, B, S or N Insurance write-off? | RAC Drive (1)

Car insurance companies work to strict guidelines. They have a duty to return a car to the condition it was in before the accident.

However, this can be expensive: it dictates which workshops and parts might be used.

All this is factored into the calculations insurance assessors use, so costs can soon rise.

This is why write-offs do not always have to be particularly serious and you might be left surprised to know find out that your car, having only sustained seemingly minor cosmetic damage, is still classed as a 'write-off'.

If a car is new, a simple cosmetic scrape along one side can see it declared a write-off by the assessor: the expense of repairing and painting the panels can exceed the vehicle's actual value, even if there is no serious structural damage.

This is why there are different categories of write offs so people know whether they can still buy and sell a type of written off car.

What are the car insurance write-off categories?

Car insurance assessors use various categories of car insurance write-off to rank the seriousness of accident damage.

Up to October 2017, the four categories used included Cat A, Cat B, Cat C and Cat D, whereby the level of damage would decrease in severity by category, starting from A.

After review, the ABI has updated the salvage code, in order toshiftfocus away from the merecost of repair and insteadhighlightstructural issues that affect safety. The categories are now A, B, S and N.

CatA, B, S and N explained

What is a CatA write-off?

A Cat A car is for scrap only. These cars so badly damaged they should be crushed and never re-appear on the road. Even salvageable parts must be destroyed.

What is a CatB write-off?

Cat B cars are broken up for parts. The Body shell should be crushed. Cat B signifies extensive damage, although some parts are salvageable.

These vehicles should never re-appear on road, although reclaimed parts can be used in other road-going cars.

What is a CatS write-off?

CatS means the vehicle has suffered structural damage. This could include a bent or twisted chassis, or a crumple zone that has collapsed in a crash.

CatS damage is more than just cosmetic, therefore, and the vehicle will need to be professionally repaired. Also, it won’t be safe to drive until then.

What is a CatN write-off?

Vehicles graded Cat N haven’t sustained structural damage, so the issue may be cosmetic, or a problem with the electrics that isn’t economical to repair.

Don’t assume such vehicles are drivable, however; non-structural faults may include brakes, steering or other safety-related parts.

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What does an insurance company do with your write-off car?

What is a Cat A, B, S or N Insurance write-off? | RAC Drive (2)

The ABI Salvage Code dictates that Category A and Category B cars should be crushed, with Cat B vehicles allowed to donate some safe and serviceable parts.

However, write-offs in the latter two categories can be sold on by the insurance company, either to the original owner or to a third party via a car salvage company.

Cars written off as a Category Scase, must have aForm V23* submitted by the insurer, self-insurer or agent to DVLA as soon as the categorisation decision is made and without waiting for V5.

However, it is the responsibility of the keeper to notify DVLA when a vehicle is passed to an insurer following a total loss payment.

No notifications are made to the Driver and Vehicle Licensing Agency (DVLA) or VOSA when a car is written off in a Category Nsituation.

Cars in the latter two categories can sometimes represent a bargain, if they are priced accordingly.

An older car can be repaired to an acceptable standard at a lower cost than that dictated by an insurance company’s standards – especially if used parts or cheaper labour are used.

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Should I buy a Cat S or Cat N write-off car?

Some sellers try to pass off CatSor CatNcars as non-damaged by hiding their past.

If the buyer does not carry out avehicle history check, they might not be aware the car has previously been damaged and so could pay over the odds for an insurance write-off.

Suffering an accident that leads to a vehicle write-off is distressing, but unwittingly purchasing a written-off vehicle and paying more than market value for it is painful too.

Make sure you know how to interpret the jargon and are fully aware of a vehicle's past so you don't get caught out by an unscrupulous seller with an RAC Vehicle Check.

What is a Cat A, B, S or N Insurance write-off? | RAC Drive (2024)

FAQs

What is a Cat A, B, S or N Insurance write-off? | RAC Drive? ›

Cat A cars must be crushed and scrapped. Cat B: Vehicles in this category have suffered extensive damage, rendering them beyond repair. However, unlike Cat A cars, some parts can be salvaged and sold. Cat N: These vehicles have sustained non-structural damage, but the cost of repairs is more than the vehicle's value.

What is a category N? ›

A Cat N classification means that a vehicle that has been involved in an accident and written off by its insurer. The 'Cat' stands for category, while the 'N' stands for 'non-structural damage' to the body or chassis.

What does cat b mean on a car? ›

Cat B cars are broken up for parts. The Body shell should be crushed. Cat B signifies extensive damage, although some parts are salvageable. These vehicles should never re-appear on road, although reclaimed parts can be used in other road-going cars.

What is a category S? ›

Cat S write-offs have suffered damage to structural areas of the vehicle such as the chassis or crumple zones. A Category S car can be repaired and put back to a roadworthy condition and used on the road again. However, the car must pass an inspection by an accredited engineer.

What does Class N mean on a car? ›

Previously known as 'Cat D', the new Cat N represents the least severely damaged write-offs. Under the new classification, cars in this group will not have received any structural damage. That's not to say any issues will be purely cosmetic; non-structural faults could include brakes and steering for example.

What does n mean on a car? ›

N – Neutral: If you want to take a break from driving or need to coast downhill, you can put your car into neutral. Just be sure to shift back into "D" before you start accelerating again. · R – Reverse: You'll only use this gear when backing up.

What does code B mean on a car? ›

First DTC character

C Codes– C codes cover chassis functions such as steering, suspension, and brakes. B Codes – Vehicle body codes refer to safety and comfort features inside the driver's cabin. U Codes – U codes cover all the network and vehicle integration functions that the OBD manages.

Is it okay to buy a car with structural damage? ›

When structural damage occurs, the vehicle is typically considered no longer safe to drive and should be avoided during the purchasing process. Structural damage can also lead to significant repair and replacement needs in the future, which means any savings from purchasing a damaged vehicle will be short-lived.

What is a cat C? ›

But, what does Cat C mean? Category C (often shortened to 'Cat C') means the insurer has deemed the cost of repair to exceed the value of the vehicle. In these cases, the car isn't necessarily considered completely unroadworthy. A Cat C car can be safe to drive as long as it's repaired safely and properly.

What does cat n mean on Reddit? ›

CAT N is a catagory that the insurance company gives a car after an accident that is (in their eyes) uneconomical to repair but is still ok to drive back on the road after an inspection.

How do I write off a car? ›

You could write off all or some of your original purchase price after the first year, using the Section 179 deduction. This special deduction is an IRS Tax Code section that allows business owners to write off the allowed purchase price of your car in the year it was purchased or financed.

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