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Can I challenge an incorrect write off category?

Can I challenge a Category S write off? My Renault Kangoo was rear-ended at about 3mph and sustained no chassis damage. The bodyshop said it was Category N, but four weeks after the car was inspected, my insurance sent a letter stating that it was a Cat S.

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Yes, you can challenge them. You need to raise a complaint with the insurer and ask for the classification to be reviewed by an IAEA qualified engineer. If the vehicle has damage to a welded panel, like the rear panel, it will be a Cat S though.
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