The_Assessor_Summer 2026 Web - Flipbook - Page 32
JOURNAL
IAEA: WRITE-OFFS
ABP INVESTIGATES:
VEHICLE
WRITE-OFFS
As vehicle technology becomes more advanced and repair costs continue to rise,
increasing numbers of cars across the UK are being written off following relatively minor
accidents. ABP investigates why write-offs are increasing, the impact on repair volumes
and consumers, and how the trend is reshaping the salvage and repair industry.
he number of vehicle
write-offs in the UK
has increased in
recent years, with
several factors driving
the trend. Repair costs have surged
and modern cars are much more
complex. A small bump that once
required a simple panel repair can now
require recalibration of sensors and
replacement of expensive electronic
parts so that insurers often decide it’s
not economical to repair.
T
“We are seeing a clear and sustained
increase in vehicles being deemed
uneconomic to repair across the UK
market,” said Neil Joslin, Director,
Silverlake Automotive Recycling. “This
is being driven by a combination
of rising labour rates, increasing
parts costs, and the complexity of
modern vehicles, particularly those
with advanced driver assistance
systems (ADAS). What we’re noticing
in particular is growth in so-called
‘borderline’ total losses. These are
vehicles that historically would have
been repaired but are now tipping over
the economic threshold. The salvage
pool contains more cosmetically
damaged, driveable cars (Cat Ns) than
it did previously.”
Industry estimates suggest there were
1.75 to 1.85 million vehicle insurance
write-offs in the UK in 2025. If repair
costs approach 50–70% of vehicle
value, insurers often write it off, but
write-off thresholds can vary. “A vehicle
that may be treated as a borderline
repair in one route can sometimes be
pushed more quickly towards total loss
in another, depending on the claim
type, the commercial model behind
it, and how the overall costs are being
assessed,” said Wayne Mason-Drust,
Managing Director, Accident Express.
“While the industry often talks about
32
write-offs as though there is one
consistent approach, in practice,
there can be noticeable variation.
Manufacturer borderline programmes
can be useful where available,
particularly when they help keep a
repair within reach that might otherwise
tip into total loss. In general, anything
that supports safe repair retention is
helpful, but consistency across the
market remains a challenge.”
Although many borderline vehicles are
technically repairable, the challenge is
making the economics work. “Writing
off a vehicle can reduce claims costs
and therefore help to keep motor
insurance premiums lower,” said Neil.
“Equally, in times of 昀椀nancial hardship
due to economic conditions, some
motorists may be more predisposed to
accepting a total loss cash settlement.”
Echoing this point, Wayne suggests
that a cash settlement is not necessarily
the fairest solution. “In a cost-of-living
environment, cash can become an
incentive in itself. A customer may
accept a total loss settlement because
the immediate cash is useful, not
necessarily because it delivers the
best long-term outcome. Acceptance
should not automatically be treated
as fairness. If the settlement does not
allow the customer to buy a genuinely
comparable replacement, then the
write-off decision may leave them
worse off in practical terms, even where
the valuation process appears to have
been followed.”
Inevitably, total losses impact on work
volumes because every vehicle written
off is work removed from the repair
sector. “From our point of view, the
real question is not simply whether
a vehicle can be written off, but
whether it should be and whether the
decision has been made with enough
technical input at the right stage,”
said Wayne. “Ideally, potential total
losses should be identi昀椀ed early, but
the 昀椀nal position should be informed
by proper repair knowledge, not purely
by remote cost triggers or headline
economics.”
With an ageing UK car parc, more
vehicles are likely to sit close to the
economic write-off threshold. “An
older vehicle may still be a reliable,
familiar and affordable asset for the
customer,” said Wayne. “The question
should not only be whether the vehicle
is economic to repair on paper, but
whether the customer can realistically
purchase a like-for-like replacement
after the total loss settlement.”
Wayne believes that borderline total
loss decisions should be viewed
through a customer outcome lens,
Parts assurance and speed are vital and Silverlake
Automotive Recycling has invested in bespoke technology
so real-time parts availability and cost, via its parts portal,
can be integrated into bodyshops’ estimating systems.
THE ASSESSORS JOURNAL | SUMMER 2026 | www.iaea-online.org/news/the-assessor
