What Is Car Insurance Buy Back?
Just because your car has been deemed a write-off by your insurers doesn’t have to mean you have to accept. This is how you can make money on insurance buy back.
Car insurance buy back explained
Car insurance buy back is simply where you buy back your broken car from your insurers after they have deemed it as a write-off. In some cases you may feel that the value they have attributed to your car is too low, or perhaps you feel you can get it back on the road yourself.
In those instances you can opt to negotiate a buy back price to keep the car and repair it (or sell it) yourself. In some cases, your insurers may even offer it to you from the outset. If they do, then you’ll likely be given two options, which will be a full payout, or a payout minus a salvage deduction (where you get to keep the car).
Insurance buy back and salvage deduction
There are several reasons your car may be written-off by your insurer and cause it to be classified as damaged or broken. You may have been involved in a car accident, it could have been damaged by flood water or even accidentally damaged, such as by spilling a tin of paint on the interior.
Whatever the circumstance, if your insurer considers the repair costs to be greater than the value of your car, they will class it as a total loss. Typically, if the cost to repair your car is more than, on average, 80% of its Pre-Accident Value (PAV), it will be written-off. However, this can vary depending on your vehicle and insurance company.
If you want to keep your car, your car insurance provider will offer you a buy back quote. This payable amount is the PAV of your car minus its salvage deduction. This is often negotiable, as insurers usually quote a figure below what they can achieve for your vehicle. It’s a good idea to use our Scrap Car Comparison calculator to receive a salvage quote from our trusted buyers.
Advice from our experts
Advice from our expertsWe sat down with some of our most knowledgeable team members to bring you some of the tips of the trade when it comes to insurance buy back. Use the points below to ensure you’re getting the very best price for your car.
- Remember you’re being quoted the car’s value, not retail price – It’s always a little humbling when you’re quoted the value of a broken car, but it’s important to remember that’s exactly what it is: broken. Just because a car of similar age and mileage might be worth something on AutoTrader, doesn’t mean yours will be. Don’t forget the cost of repairs must be taken into account.
- Crashing a car is one of the most stressful experiences; try to keep calm – Our experts speak to a wide range of customer when it comes to end-of-life vehicles. Perhaps obviously, customers who have been involved in crashes have experienced the highest levels of stress. Yes, MOT failures and breakdowns are frustrating, but nothing is as traumatic as a crash writing your car off. Stay calm when talking to your insurers (or anyone with relation to your car), as you’ll need to keep a level head to ensure you remember all the details and take everything in.
- Get a quote from us first to see where you stand – Before you being to go into negotiations with your insurer, make sure you have a clear idea of exactly what you’re working with. By getting an accurate quote with our experts, you’ll have a much clearer idea of the value of your car. This allows you to have more weight to your side of the argument, rather than just going in blind.
For the most accurate quote possible, get in touch and speak to one of our advisors. We’ll tell you exactly how much your car is worth, giving you a much better idea when talking to your own insurers.
FAQs
Can I buy back my car from my insurers?
If your insurer has deemed your car a write-off, whether for accident damage or significant mechanical issues, you can buy the car back if you wish to do so. If you do decide to buy your car back, then you should make your insurers aware as soon as possible. Be aware that there may be more damage than first meets the eye and that a previously written off car can be incredibly difficult to sell on.
How does insurance buy back work?
In order to buy back an insurance write-off you will need to inform your insurers as soon as possible. It’s important to do some research before you go in, as your insurers are likely to begin with a low valuation, meaning there will be some room to negotiate. If you feel the offer is particularly low, you can choose to escalate to a formal complaint. The insurers cannot take ownership of your car until a settlement figure has been agreed and accepted.
What is a buy back option on car insurance?
If your car has been involved in an accident and has sustained significant amounts of damage then your insurers will be able to inform you as to whether it has been written-off or not. The decision will be made based on the value of your car against the cost of repairs.
The cost of repairs doesn’t even need to be higher than the value, and it could be that it’s just simply not worth repairing – for example, £3,000 worth of repairs to a £4,000 car makes little sense in the long run.
Where do insurance companies sell damaged cars?
If your car has been written off as either Category A or B, then your car will be sent straight to the crusher, however, if it is an S or N write-off, then it is likely to live on elsewhere. Insurance companies regularly sell broken vehicles to specialists, where it will likely become a lot at an upcoming salvage auction.
Can I get a refund on my insurance if I sell my car?
Selling a car is the most common reason that insurance policies are cancelled, and you are entitled to a refund if you are yet to complete your policy. You will be subject to an administration fee and the amount of a refund you receive will depend entirely on how long there is left on the policy. If you are cancelling your policy to replace it with a new one with your new car, this refund will often be taken into account as you alter the details of your policy to reflect your new set of wheels.
How much does it cost to buy back a car from insurance?
The figure will entirely depend on what your car’s Pre-Accident Value (PAV) was, minus any repairs that would be needed to get the car on the road. Do some research before you begin your buy-back plans, including the value of working cars of a similar age and mileage to yours, as well as getting quotes from garages as to the cost of repairing any damages that would need rectifying.
Why do insurance companies deduct salvage value?
Insurance companies will deduct the salvage value of a car if you intend to buy it back from them. This effectively equates to you “paying” for the vehicle, without actually spending money. In effect, you take a smaller figure from them, in return for getting your car back. The figure taken off of your overall valuation is what is known as the salvage deduction.
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