Where a vehicle is unsafe or uneconomical to repair, it will be classed by an engineer as a total loss. There are four categories of a total loss:
Category A: Severe damage with no serviceable parts, the vehicle must be crushed.
Category B: The vehicle has major structural damage and the repairs cost more than the value of the vehicle. Parts can be salvaged from the vehicle but it cannot be re-sold or used on the public roads.
Category S: The vehicle is repairable but the cost of repairs is higher than the value of the vehicle. The damage may include structural damage leading to the high cost of repair.
Category N: The vehicle can be repaired and only has minor damage but the cost of repairs is a significant proportion of the vehicle’s market value.
Once the vehicle has been deemed a total loss by the engineer, the fault party’s insurer will offer a settlement equivalent to the pre-accident market value of the vehicle.