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SALVAGE CATEGORISATION

The rules governing the way the UK salvage industry works have changed.  Many of these changes are ‘behind the scenes’ but the most obvious for salvage customers will be the salvage categories.

These changes happened because, following the end of VIC in 2015 and due to concerns about new vehicle materials and technology, the ABI (Association of British Insurers) updated its Salvage Code of Practice – the rules by which the UK salvage industry works.

These new changes started to come into effect on 1st October 2017

The most visible change for salvage buyers are to the ‘repairable’ categories:

·         OUT go repairable categories C and D

·         IN come repairable categories S and N

The reason for this is that the new salvage categories S and N reflect the type of damage to the vehicle, making it more transparent for customers.

The non-repairable categories A and B remain.

In the old CoP, whether repairable salvage was categorised as C or D depended on the cost of repair compared to the pre-accident value.  This is no longer the case.  Under the new system the category simply depends on the type of damage, without any comparison of the cost and value.

Salvage with damage to the structural parts (realignment to original dimensions or replacement of frame or chassis) of the vehicle is now category S (S for Structural).  As in the case of category C currently, insurers will destroy the V5C registration document and buyers will need to apply to DVLA for a replacement V5C.  This will continue to be FREE OF CHARGE.  The replaced V5C issued by DVLA WILL be annotated (as Category C currently is) but the wording will change, reflecting the new category definition, to: “This vehicle has been salvaged because of structural damage but has been declared suitable for repair following a technical evaluation”.

Salvage that does not have any damage to structural parts will now be classed as Category N (N for Non-structural).  As currently the case with Category D vehicles, the insurer does not have to destroy the V5C and should pass it on to the salvage agent.  However, if the V5C or the green slip is not available, an application to DVLA for a replacement V5C will be at the standard rate (currently £25).  The reissued V5C will NOT be annotated.

VEHICLE DAMAGE AREAS THAT ARE STRUCTURAL

structural damage.jpg

SUMMARY OF NEW SALVAGE CATEGORIES

 

Category

 

A

B

N

S

Repairable?

No

No

Yes

Yes

Definition

Scrap only

Can be dismantled for spares parts

Non-structural damage

Damage to the structural frame or chassis

V5C supplied with salvage?

No. Insurer destroys

No. Insurer destroys

Yes, if available

No. Insurer destroys

DVLA reissue V5C?

No

No

Yes

Yes

V5C annotated?

n/a

n/a

No

Yes

V5C application cost?

n/a

n/a

Yes

No

 

A copy of the new Salvage Code of Practice downloaded from the ABI website here.


WARNING

You should never purchase or attempt to repair category A or B salvage.  An insurer has stipulated, for very good reasons (which may not be obvious to you) that these vehicles must be destroyed.  Attempts to repair these vehicles & return them to the road in the UK or overseas is likely to cause problems.  As of 26th October 2015 DVLA no longer reissue V5Cs for these vehicles & it may not be possible to get insurance (so it will not be possible to tax or use them again).