HPI Highlights Risk Of Buying Insurance Write-Off
Categories Of Insurance Write-Off
Motorists planning to buy a vehicle that has been written-off could get a death trap unless they take precautions, HPI has said. The term “write-off” or “total loss” relates to a vehicle that has been damaged by a collision/arson/freak occurrence, etc. The insurance company then places it within Category A, B, C or D based on damage. The Categories are:
Category A. Scrap (such as total burnouts). Specifically, few/no economically salvageable parts so the value is in raw materials. These cannot return to the road.
Category B. Scrap (less seriously damaged than Category A). Vehicles can be broken for spare parts if economically viable, but must not be returned to the road.
Category C. Fixable (repair cost exceeds the pre-accident value).
Category D. Fixable (repair cost is less than the pre-accident value).
Written-Off Vehicles Can Return To The Road
A Category C/D can be returned to the road (legally). It must first, however, pass a Vehicle Identity Check to confirm it is not a stolen car masquerading as a write-off. Any seller should also reveal its past to the potential buyer. The problem for the latter is that the owner might “forget” to mention the insurer's classification. Why? Because a write-off tends to be worth less than a similar car that has not been damaged. It is harder to sell too. In this scenario, a buyer might overpay for a vehicle that is not what it seems. Furthermore, it can be hard to establish whether a car has been repaired properly. A mechanic might, for example, save money by not replacing the passenger air-bag or smoothing over dents with yards of filler. The solution is an HPI check that confirms whether a car has been written-off by its insurance company. If so, an independent inspection will reveal the quality of its repair. Such precautions are essential. But why risk it? HPI figures show that for every 33 cars it researched last year, 32 were not written-off.
HPI Representative Discusses Written-Off Cars
HPI Senior Consumer Services Manager, Shane Teskey, said: “buying a written-off vehicle is a very real risk for used car buyers. It’s all too easy to be taken in by shiny paintwork and a bargain price, but that shiny exterior could be hiding a host of faults that make the vehicle dangerous. Dodgy sellers are out to make a fast profit and will happily take your money for a vehicle that’s not fit for purpose. The HPI Check confirms whether a vehicle has been written off, helping buyers make safe and informed decisions before they part with their cash.”Buy Safe From Trusted Car Dealers