SALVAGE RETENTION AND VEHICLE WRITE-OFF
Salvage retention is included with all Heritage policies (except Optima), and is a type of additional cover that allows you to keep the salvage of your vehicle in the event of a Category S or N write-off. The only time you will not be able to retrieve the salvage of the vehicle is if the write-off is classified as Category A. For Category B categories, the shell of the vehicle cannot be given as salvage but other parts of the vehicle can.
Usually, the insurer would own the salvage of the vehicle in the event of a write-off. If you have salvage retention in place, you have the option to keep the salvage of the vehicle yourself and the value of this would be deducted from the insurer’s payment to you.
HOW DOES SALVAGE RETENTION WORK?
Every salvage has a scrap value. Salvage retention works by deducting the value of the salvage of your car from the insurance payment due to you for the damage, enabling you to keep ownership of the salvage.
In a case where you don’t have salvage retention in your policy, the insurer would own the salvage and would be able to scrap the car and claim this amount. You would receive a pay-out for the insured vehicle value, and the claim would be recorded against your policy at the value you were paid.
In the event of a write-off claim, you will need to express to the claims department that you want salvage retention. If you do not request it at this point, you may not receive the salvage.
IS SALVAGE RETENTION INCLUDED IN YOUR POLICY?
With Heritage, salvage retention is free of charge and is included within all policies except Optima – because of this, we don’t offer salvage retention as an add-on. As salvage retention is standard on Heritage policies, you do not need to ask for this level of cover at the inception stage of your policy.
WHAT COUNTS AS A WRITE-OFF?
An insurance write-off is a car that’s either sustained damage to the point that it’s considered unsafe to be put back on the road, or that is beyond economical repair. Economical repair is generally decided on a repair-to-value ratio, which may vary depending on the insurer and the vehicle.
VEHICLE WRITE-OFF CATEGORIES
The way in which vehicles are classified as write-offs was changed in October 2017. The vehicle write off categories are now:
- A: scrap – not suitable to be repaired. It must be crushed without any parts being removed.
- B: break – not suitable to be repaired. Usable parts can be recycled.
- S: structural repairable – repairable vehicle that has sustained damage to any part of the structural frame or chassis, and the insurer/self-insured owner has decided not to repair the vehicle.
- N: non-structural repairable – repairable vehicle that has not sustained damage to the structural frame or chassis, and the insurer/self-insured owner has decided not to repair the vehicle.
AN AGREED VALUE EXAMPLE
Say you have a classic car valued at £10,000 and this is written off as a Category S. The value of the salvage, the vehicle after the accident, is £2,000.
Without salvage retention
The insurer pays you the £10,000 value of the vehicle, and records the claim against your policy at this value. They become the owner of the salvage and scrap it for £2,000; this is not shown on your claims record.
With salvage retention
The insurer pays you £8,000, having deducted the £2,000 value of the salvage from your pay-out. You retain the ownership of the salvage, and the claim is recorded against your policy at £8,000.
Why agreed value?
Without agreed value on your classic, you won’t know what your insurance payout figure will be as the insurer will determine this based on market rate at the time of the claim. You can get free agreed value for your classic vehicle through Heritage
NEED TO MAKE A CLAIM?
If you have cover with us and need to make a claim, click here.
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ADDITIONAL OPTIONS HERITAGE INSURANCE CAN PROVIDE
Looking to add legal protection or personal accident cover to your policy? We offer a wide range of valuable extra cover options. Choose the cover that suits your needs, or pick our package option, which can combine some of our most popular optional extras at a discounted rate.
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