Help me figure out CAT N total loss for car insurance.

toodeeptofind

Hi

Basic info

I bought a Citreon C2 (~20 year old) last year for 950. Recently, a driver scratched and dented my car (above rear right tire) in a narrow road. It is not a big one but insurance has figured it is a total loss and awarded CAT N. I have dash-cam video of other vehicle license where I am stationary and other vehicle's trailer clipped my car. Because it clipped on rear right side, that action is not captured on camera but there is sound and car does shake. Also because the driver didn't stop, I don't have his/her details but it is insured and MOT passed.

OPTIONS FROM INSURANCE: So far my understanding

Option 1: Go with total loss. The insurance(Admiral) has offered me about 330 GBP (after 450 GBP excess deduction - not sure how recoverable it is. I am stationary.). If I understand correctly, there will be claim in my file which will increase my next years insurance and also will loose no claim bonus (if there will be any). Also, I am not sure if I will get back remaining 2 months of insurance I have already paid.

Option 2: As per insurance, I need to re-do my MOT and get re-instated back. As per insurance, even if I don't file the claim, the car will be CAT N. Also, I don't want to fix the rear side panel (cost prohibitive) but I am not sure if I need to for insurance and MOT. 

NOTES

• I (25-30 age group) had no driving history in UK so I paid ~1300 for a year of insurance. I was hoping the insurance to get down during renewal.
• The car is old and has lots of advisories(including rust) and fails in the past MOT. (I didn't know about such checks as it was my first purchase). Also, putting in first gear is bit difficult probably due to bad synchro. 

What would be best course of action?

toodeeptofind

Additional notes: My understanding (while discussing with insurance) was as long as I don't claim, no categories would be assigned. They asked me for pictures and said I could still not claim but having CAT N (despite old vehicle) for just informing is wrong? IDK how insurance works in UK but I would be glad if you guys/girls could help me understand.

DullGreyGuy

It will ultimately come down to if the third party admits liability or not, with the footage it's clearly more likely than if there was no footage but nothing is ever a slam dunk. 

Under option 1, if they do then ultimately it will be a non-fault claim so won't impact your NCD and you'll be able to recover your excess. You won't be able to get back the 2 months thats left of the policy, realistically the claim won't be resolved within that timescale but you can transfer the remaining 2 months onto another vehicle. 

If you are happy to live with the damage then you may be able to retain the salvage under option 1, which will result in a reduced settlement.

You could ask Admiral for the third party's insurance details, or alternatively buy them from the MID for £10, and attempt to claim directly from them but given the failure to stop its unlikely its been reported and so this could be a slow process.