How is Insurance Buy Back Value Calculated?
Knowing how much your car could be worth is crucial when it comes to knowing where you stand when speaking to your insurer.
Here at Scrap Car Comparison, we’re experts in the field of write-offs, and we’re best placed to help you understand how much your car is really worth after a hefty accident or breakdown. Your insurer may be quick to write it off, but you shouldn’t be quick to accept. On this page, we’ll take you through all you need to know about you car’s write-off value, and whether you should consider Insurance Buy Back.
Calculating your write-off value; How to get the best price
Your first question is likely to be simply “how much is my damaged car worth.” Your buy back value will alter depending on a range of factors, including what car you’re selling and how damaged it is. Here’s our suggestion on how you should go about ensuring you’re getting the very best deal possible.
1. Speak to your insurer first
You can’t do anything about Insurance Buy Back without speaking to your insurers first, not least because you’ll need to get an idea on what they’re offering you as a payout in the first place. Your insurers will state your offer and inform them there and then you’re considering buy back as an option so you can start digging further.
2. Do some research
We cannot stress the importance of this one. You’ll need to know exactly what you’re dealing with, so you’ll need to work out your car’s value before the accident (it’s Pre-Accident Value or PAV) as well as the cost of the repairs. Deduct the repair from the PAV – this is your salvage deduction. Now you’ll have a starting block to negotiate with.
3. Negotiate
Your insurer will only be willing to pay out what they feel the car is worth, which will be their opinion on its PAV minus repairs. With your research, negotiate a price you feel is fair, and be prepared to show your evidence. Remember it’s not uncommon for insurers to start low, so be prepared for some hefty negotiations.
4. Buy it back
Once you’ve agreed a deal with your insurers and made your payment, the car returns to you and its yours to do with as you wish. You can of course choose to repair it to get it back on the road yourself, or you can opt to sell it on if you feel you can get a better price than you paid your insurers.
How is salvage deduction calculated after a write-off?
If you have been in a road accident and your insurance company believes the total cost to repair your vehicle is approximately 80% of its overall value, they may declare it to be written off. This is also known as a ‘total loss’. It is worth understanding how this value is calculated by insurers as it doesn’t always mean your car or van is necessarily beyond repair.
Depending on the severity of the accident, your vehicle will either be towed to a storage facility, or you may be able to take it home. An insurance assessor will then come to view the vehicle, where they will:
- Work out the PAV (pre accident value) of your vehicle
- Calculate the costs to repair your vehicle
- Based on these calculations, they will decide if it needs to be written off or not
- If it is deemed a write-off, it will be categorised accordingly into one of four salvage categories
- In most cases, your vehicle will be either Category S or N.
What is the value of your written off car?
The value of your broken vehicle is often determined by which category your damaged car falls into. Make sure you speak to our team, or use our salvage title car value calculator at the top of this page to ensure you’re getting the very best price for your broken vehicle.
Every insurance write-off will be categorised into one of four categories, produced by the Association of British Insurers (ABI) produced a salvage code to make it easier to understand the condition of a vehicle. Since 1st October 2017, the following categories have been used:
Category A – Scrap
This is the category given to vehicles not suitable to be repaired. No parts of it can be reused for salvage and the whole vehicle must be scrapped immediately.
Category B – Break
This category is for vehicles that are not suitable to be repaired, but they may have parts that can be used elsewhere.
Category S – Structural
This category is given to vehicles that have damage to the structural frame, the insurer has chosen not to repair it. They can still be used for salvage. It was previously called Category C.
Category N – Non-structural
Finally, category N is for vehicles that have non-structural damage and are repairable, but the insurer has chosen not to proceed with the repairs. They can still be used for salvage. It was previously called Category D.
Total Loss Car Value Calculator
If you have been in an accident and have received a write off buy back quote from your insurance company, we would recommend using our salvage calculator to research your options and see what other quotes are available to you. Simply enter your registration and postcode for a free, instant quote.
Quite often, cars that have been written off by insurers as a total loss still have some use. In many cases, they can be repaired or sold as salvage, meaning the parts can be used to repair other vehicles.
For the most accurate quote possible, call our team on 03333 44 99 50 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
FAQsHow do I buy back my car from my insurers?
If you decide to buy your car back from your insurer, 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.
What is insurance buy back percentage?
The insurance buy back percentage is the amount of your car’s value you can expect to pay in order to buy your car back from your insurers. Although there is no standard figure, this usually sits somewhere in the region of 20%
How does insurance buy back work?
Insurance Buy Back is exactly what it sounds like – If your car has been written off as a total loss by your insurer, you may be able to buy it back.
This means that your insurer will return your vehicle to you for a settlement figure rather than taking ownership of the vehicle and handing it over to a salvage firm. Commonly known as both ‘buy back’ and ‘salvage deduction’, you should make your insurer aware you would like to carry out this process as soon as possible to negotiate the best deal.
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