Insurance industry declares it as a write-off

When a car has been in an accident so bad that the cost of repairing it is more than its market value, the insurance industry declares it as a write-off. The insurers then pay the cost to replace it based on what the current market value is and take it off your hands. After that, the car is processed and the insurers are bound to get them in the record as totaled cars. However, a hole in the system has been discovered as there have been reports of thousands of write-off cars being sold as used cars in the UK.

This is because of the reason that the insurance companies in the UK fail to process such cars efficiently. For a car to be recorded as a write-off, the reports must come through the insurers. When the owners, local councils, or the police try to get such cars recorded, the process fails. This, in turn, produces inconsistencies in the said insurance databases.

Reports have been coming in from all over the UK that certain cars that were not recorded as write-offs were being sold in thousands. Such cars are repaired and the damage is concealed and then they are offered for sale on many websites selling used cars. The Motor Insurance Bureau (MIB) which controls MIAFTR has also clarified that every write-off is not recorded. MIB suggests that the only way they can improve the recording system is through some policy changes.

A couple that bought a C3 Aircross which looked almost new later found out the opposite. After they brought the car to get washed, they found out that the car has been seriously damaged after falling on its nose. They followed the trail and found out the car was bought by the dealer from one of the biggest car salvage dealing websites. Another such case involved a Mercedes-AMG A45 which write-off clear. The buyer when tries to sell it comes to know that the car had 5 previous owners and was unable to be sold. The MIB ensures that it is working with the insurance industry to improve the recording system and the quality of the data being recorded.