The Association of British Insurers (ABI) has announced updates to its Salvage Code of Practice, modernising the guidance to reflect the latest developments in vehicle technology.
The Salvage Code, a voluntary framework used by insurers and salvage operators, sets out how written-off vehicles should be categorised. Its goal is to prevent unsafe vehicles and parts from being returned to the road, thereby helping to keep UK roads safe.
The latest revision follows extensive collaboration with industry stakeholders, including insurers, the Motor Insurers’ Bureau (MIB), and Thatcham Research. These updates improve the clarity of vehicle categorisation and dispute processes within the code and align with advances in automotive design and technology.
For the first time, the updated code incorporates guidance on electric and hybrid vehicles. It also accounts for innovations such as megacasting¹, reusable components, and other modern vehicle construction methods. In addition, the revised wording now better addresses specific vehicle types, including Heavy Goods Vehicles (HGVs) and motorcycles. This is the first update to the code since 2019.
Mark Shepherd, Head of General Insurance Policy at the ABI, commented:
“By ensuring that consumers have transparency about the history of vehicles they are considering buying, the salvage code is a great example of the insurance industry working together to make the UK’s roads safer. It’s important the code moves with the times, and this update reflects the increasing sophistication of our vehicles, including new powertrains and construction methods.”
Click on the following link to read the Code of Practice for the Categorisation of Motorised Vehicle Salvage.
About the Salvage Code of Practice
The Salvage Code helps insurers categorise damaged vehicles into one of four categories:
- A: Scrap
- B: Break
- S: Structurally damaged repairable
- N: Non-structurally damaged repairable
Vehicles are typically written off when repair is either economically unviable or poses safety concerns. However, not all total-loss vehicles are unsafe. In cases where write-offs occur purely for financial reasons, reclaiming usable parts prevents unnecessary waste and supports a circular economy.
The Salvage Code of Practice remains a voluntary initiative introduced by the ABI in the absence of regulation governing written-off vehicles. All ABI member motor insurers adhere to the code. The ABI continues to advocate for the code to be given statutory status to further strengthen its impact.
¹Megacasting is a manufacturing process in which large vehicle components are produced using high-pressure die casting (HPDC).
Source www.abi.org.uk
