When you scrap your car, one of the first things that is probably on your mind is to make sure you’re no longer paying tax and insurance on that vehicle. These outgoings can be hefty and need to be organized as soon as you’ve scrapped your car so that you’re not paying extra. Luckily, the process of reclaiming your money is simple and you don’t have to do much of the work yourself, there are just certain things you need to be aware of.
Your car has been scrapped by the insurance company
When you are involved in a car crash that causes serious damage to your vehicle, chances are that the insurance company will write-off your car as it is not road worthy. You will have to liaise with your insurance company to see how much they are willing to pay you if your vehicle is written off. There are 4 different categories that your write-off vehicle can fall into:
- Category A: The whole car has to be crushed as it isn’t road-worthy
- Category B: The car must be crushed but some parts may be salvaged
- Category S: The car has suffered severe structural damage and has to be repaired before deemed road-worthy
- Category N: There is non-structural damage to the car that has to be fixed before it can go back on the road.
If the car is in a terrible condition and you choose not to keep it then you can choose to have your insurer scrap it for you. They will give you two options in terms of payment, they will either transfer any funds you hold towards them towards a replacement car, or they will refund any unused months if you don’t wish to purchase a car.
If you want to reclaim your road tax then you will have to contact the DVLA yourself, if you scrap your car and don’t let the DVLA know you could continue to pay your car tax and also face a £1000 fine. In order to reclaim your car tax, you will need:
- Your car registration number
- Your insurance company’s name and address
- 11-digit reference number in section 9 of your V5C
You’ve scrapped the car yourself
If you aren’t scrapping your vehicle through your insurance company and you simply just want to scrap it as your vehicle has become old and worn then it is fairly simple to do yourself.
In order to scrap your car, you will need to take it to an Authorized Treatment Facility (ATF). These are centers across the UK that are legally allowed by the government to scrap vehicles. Using Car.co.uk, you can find ATFs across the country that will scrap your car in a quick and easy manner. Make sure to have your logbook ready to be collected by the company and keep the yellow slip as proof for your own records.
Luckily for you, it’s a fairly simply process when it comes to reclaiming your road tax. If you’ve prepaid your tax and you scrap your car, once you receive your Certificate of Destruction, the DVLA will be notified and you will get the tax back that you’re entitled to. If you pay tax via direct debit, then as soon as your vehicle has been scrapped you are able to cancel the direct debit. The DVLA will stop payments and refund and money back owed, however it is essential to cancel on your end so that you don’t pay any more whilst waiting to hear from the DVLA.
In terms of your insurance, you will simply need to ring up your insurance company and let them know the car has been scrapped. They will more often than not either offer to refund you or put the money towards the insurance of your next vehicle.
Article Submitted By Community Writer