Total Loss Avoidance
Total Loss Avoidance; The best way to recycle a vehicle is by keeping it on the road
Every day, hundreds of vehicles are deemed to be unrepairable and declared a Total Loss. Many of these vehicles are classified as non-repairable and must be scrapped or broken for parts.
However, many more vehicles are declared a Total Loss based purely on the cost of repair versus the vehicle’s Pre-Existing Value (PAV). These vehicles can be safely repaired but it is the cost of the labour, paint and parts that tip the vehicle to the category of a “Borderline” Total Loss.
More and more vehicles are falling into this category, costing the insurance industry millions, and leaving car owners without their vehicles following, in many cases, relatively minor accidents.
Streamline Your Workflow
Supporting the Repair
The cost and worry of replacing a vehicle often becomes a headache for the consumer as used car values remain strong and financing the next car becomes more expensive.
Vehicle manufacturers can support the repair of these vehicles with pricing support on the parts basket along with repairers often adjusting the price of their labour and paint to lower the overall cost of repair.
Collaboration with Key Stakeholders
OEC has a long history of working with manufacturers to facilitate Borderline Total Loss Avoidance Programmes. Now, by collaborating with insurers and repairers, we offer an enhanced solution that enables quick decision-making and the safe repair of cars, resulting in satisfied customers.
In the UK, in 2022, OEC saved 4,400 vehicles from being declared Total Losses, generating over £10m worth of parts sales on behalf of our OEM partners. With our new enhanced capability, we are already seeing an increase in the numbers of manufacturers and car owners saving more vehicles from the scrapyard in 2023.
How Total Loss Avoidance Benefits Customers
For OEMs:
- Parts sales
- Future service and maintenance opportunity
- Brand loyalty
- Lead management
For Customers:
- Retains vehicle
- Avoids GAP insurance issues
For Repairers:
- Profitability
- Supports estimate retention
- Customer satisfaction
For Insurers:
- Economic solution
- Customer satisfaction
- Policy retention
Frequently Asked Questions
How does OEC identify a potential TLA?
Our VISION application intercepts bodyshop estimate data and, based on agreed parameters, determines vehicles that are likely to be written off
Do I need to install technology?
No, all you would need to do is complete the online sign up form and we will receive your estimate data automatically, and contact you if we are able to support repairing a vehicle.
How do I submit a TLA application?
If your bodyshop is signed up to the VISION programme, then we would receive this automatically for brands we work on behalf of. Should you not be, we are also able to accept manual applications.
How do I receive a confirmation of revised parts pricing?
OEC will make an offer via email showing the revised parts basket price. Once confirmed and agreed, the order is placed with the supplying dealer at the revised terms.
How much does it cost me as a bodyshop?
Bodyshops do not pay for access to the OEC VISION system.
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