This article provides general information about the insurance industry and does not describe Hagerty’s specific products or policy terms unless clearly noted.
It’s something no classic car owner ever wants to think about – your dream car wrecked in an accident that means it’s declared a total loss by your insurance company. No more sunny Sundays behind the wheel, no more late evenings tinkering in the garage as your pride and joy is sent to the scrapyard.
However, it doesn’t necessarily have to be this way. Your insurer may write the car off because they believe it to be uneconomical to repair, but some classics have too much sentimental value to be crushed. Others may still be appreciating in value and be worth investing in repairs.
The good news is that if you’re in the unfortunate position of having a classic car subject to a total loss claim, you may be able to retain the salvage, take the insurance payout, and then have it repaired at your own expense.
Here’s what you need to know about classic car write-offs and salvage:
- What happens when a classic car is written off?
- Salvage categories explained
- Salvage retention rights for owners
- How to keep your classic car salvage
What happens when a classic car is written off?
Insurance isn’t an emotional game. It’s a question of mathematics. If the cost to repair the damage to a car is greater than its insured value, then the insurance company will write it off and pay you the amount agreed.
Typically, the vehicle then becomes the property of the insurer, who will often auction it off to recover some of its loss. However, not every car that’s written off goes to be crushed or parted out, and some can be repaired and put back on the road.
Salvage categories explained
Sometimes it takes surprisingly little damage for a car to be written off. Certain parts may be just too pricey to warrant replacing, or perhaps the labour cost of repairs is too high for the insurer to justify shelling out.
Salvage vehicles are classed by the Government in four categories outlined below:
- Category A: Where the car is simply too damaged to be repaired safely and must be crushed.
- Category B: Where the body must be crushed, but you can salvage other parts from it if they are deemed suitable to do so.
- Category N: Cars which have non-structural damage and can be repaired.
- Category S: Cars with structural damage that are deemed repairable.
If your car is in one of these last two categories, you may be able to buy the vehicle back from the insurer and get it fixed and ready for the road again.
Salvage retention rights for owners
Whether you can or can’t buy back your written-off classic from your insurer will depend on the wording of your policy. In the event of a claim, if your car is classed as a category A write-off, then it is simply too unsafe to return to you.
At Hagerty UK, we do allow customers to request the opportunity to retain the vehicle’s salvage, provided it is safe to do so.
How to keep your classic car salvage
If you would like to retain the salvage after a total loss, first, contact your insurer and let them know. Your insurer will advise you which category your car falls into. If your car is classed as a Category S or N, it can go back on the road following repairs or broken down for parts, however your insurer will advise this on a case-by-case basis.
It is worth noting that you will not be given the option to buy back the salvage if it has been categorised as a Category A, as unfortunately it must be destroyed. This is the case across the board with all insurers, as it is simply deemed too unsafe to return to the customer.
Once you have notified your insurer that you would like to retain the salvage, they will offer you a ‘buy back’ price. This is the total amount that will be deducted from any payout you receive.
Typically, insurers partner with a repair centre and require policyholders to have any repair works completed by their own trusted partners. However, with a Hagerty UK classic car insurance policy, you have the option to take your vehicle to your preferred repairer, rather than a prescribed one.
Classic car insurance from Hagerty UK
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