Insurance Write Off Categories

Auto insurance companies place written-off vehicles into different categories.

It might seem confusing when an auto insurance company declares a written-off vehicle a "total loss". Auto insurance companies categorize vehicles when they write them off, according to what can be salvaged from them. This helps them determine how much value remains in the vehicle after an accident. The "total loss" refers more to the auto owner's loss rather than the remaining value of the vehicle

Category A

The vehicle is a total loss. The damage is so devastating none of the vehicle's parts can be used again. The vehicle will be crushed and its scrap metal will be sold for whatever it is worth.

Category B

The vehicle can never be driven on the road again. It might have a few parts that still carry value as well as in its scrap metal. It should be crushed and subsequently recycled.

Category C

The damage to the vehicle is high relative to its value. For example, the vehicle is valued at $8,000 and the cost to repair it may also be $8,000. The insurance company decides to write the car off instead of sending it for repairs.

Category D

The vehicle could be repaired, but its condition will remain poor. If the vehicle is old and has high mileage, the auto insurance company could classify it as a Category C write off.

Category F

The vehicle was damaged in a fire. The auto insurance company may write it off as a Category F loss.

References

• CheckThatCar: Car Write Off Categories