Ask about salvage retention straight away

Tell the claims handler that you would like to keep the vehicle and ask them to pause disposal while that is discussed. Do not assume that receiving a payout automatically leaves the car with you.

The Financial Ombudsman explains that the insurer usually owns the salvage after the owner accepts payment of the full market value. It also considers whether the owner said they wanted to keep it. Read the guidance on retaining salvage.

If the vehicle is financed or leased, involve the finance provider before agreeing a retention arrangement. Ask who can authorise it and how any outstanding balance will be handled.

Understand the settlement and deduction

Ask for the pre-incident valuation, any excess, the salvage deduction and any other adjustments to be listed separately. The Ombudsman generally considers a deduction reflecting the salvage’s sale value reasonable, but expects evidence for the amount. See its explanation of salvage deductions.

This example excludes finance and any other adjustments. The £6,200 is not a repair allowance or a promise that repairing the car will be worthwhile.

Check the paperwork and collection plan

For a retained Cat S vehicle, GOV.UK says to send the complete V5C to the insurer and apply for a free replacement using form V62. For Cat N, you can keep the V5C. Check the current GOV.UK instructions.

Also agree who arranges collection, when the vehicle must be moved, whether storage charges apply, and which documents and keys will be handed over. Request photographs and the damage assessment before deciding.

Work out whether keeping it makes sense

Build a budget covering retention, transport, inspection, repairs and a contingency. Then consider what the finished vehicle would be worth to you, with its recorded history. Keeping a familiar car can be appealing, but familiarity does not tell you the extent of new damage.

• Get a written repair assessment before relying on a rough estimate.
• Check parts availability and a realistic completion date.
• Confirm future insurance for the specific vehicle.
• Agree a safe way to move and store it while it is damaged.

If the figures or responsibilities are unclear, ask the claims handler to explain them before you accept. Keep copies of the agreement and all correspondence.