Total Loss Insurance Claim

plumbry

I'm currently helping my 19 year old brother deal with his car insurance claim (mainly because I worked as a claims handler for a short amount of time and know a little of what I'm doing). For reference, my brother is insured with AXA, Third Part is Ageas.

Friday just gone (25/09), he was hit in a car park. Third Party admitted liability, exchanged details etc. My brother's car is an 05 plate Ford Fiesta, ~110k miles. There's relatively extensive damage to the front passenger side door, which extends to the sill inside (where the door has been slammed into it). As Third Party admitted liability (verbally and over text), we contacted the Ageas and are claiming through them.

I ran through all the details with them, and my brother was "offered" £750 for his vehicle - at this point, they had not seen images of the extent of the damage, and no report had been completed, but it's around what he paid for it a year ago, and there are similar cars on AutoTrader for £750, so I don't think he's being shafted here. My brother wishes to keep his vehicle, and Ageas asked for images for a report. I spent the majority of Saturday trying to sort images, a courtesy car (as my brother is U21, it was somewhat difficult), and chasing Ageas for information.

Today, he received a call from Ageas, and we called them back together. Following the images I've sent, they have completed a desktop report (which I believe is pretty standard). The person I spoke to explained that they've deemed the vehicle a Cat S Total Loss, and offered him £590 for him to retain the salvage of the vehicle. He'd get to keep his courtesy car for a week after.

So, now come my questions
(I know some of these I can ask Ageas myself, but I'd like to be a little enlightened of what is being said to me by them, first!)

1. First, would you accept this offer? Is he really being put back in the same financial state as he was previously?
2. How much would a Cat S affect my brother's insurance? (Premiums etc)
3. Why would this be a Cat S? I'm not a whizz on damage, so a little explanation would be greatly appreciated
4. Lastly, am I correct in thinking my brother will have to notify DVLA of the Total Loss?

Thank you all kindly in advance of any help at all! 

angrycrow

1, his loss is the market value of the car at the time of the accident. You accept that £750 is the market value. He can give them the car and receive £750 to replace it or he can keep it and they deduct the salvage value £160 which is about right as just over 20%.

2, only the insurer can answer this. Some won't cover it, some will charge a bit more and others won't care.

3, cat s is structural damage. You have confirmed the sill is damaged, this is a major structural part of the car and hugely complex to properly repair. 

4, Ageas will make the relevant declaration of it being cat s via the MIAFTR database. 

Personally sounds like one to let go of the sill is damaged. 

RBN20

Seems like a fair amount, if he paid £750 for it a year ago it is probably a better amount than expected, and £590 if he retains it seems reasonable. 

A lot of insurance companies will not care that it’s previously been written off, as if it is in a safe, roadworthy and legal state it is not a higher risk than before. It might be worth calling Axa to see if it’s something they would impact the premium for, you should call them anyway to let them know about the incident for information purposes 

If you brother wants to keep it and live with the damage he can just pocket the £590, if he particularly wants it fixed maybe use this week to take it to a local repairer for a quote for him to sort, if it’s very high and he changes his mind about retaining it Ageas may be happy to pay the additional money to take it back up to £750 and pick the car up for you. Most will give a certain amount of time for you to change your mind 

plumbry

Thanks to you both - confirmed what I thought  another set of eyes is always useful!