I don't think it's the same risk buying a car that isn't on a category register against one that is, that's a haphazard comment. You can say there is an element of risk, which there is (Of buying a car after being in a smash and no claim), but it isn't the same risk by a long shot. The difference between a crash and one which writes the car off is imo substantial. Ok, there is always "circumstances" where a small amount of damage can cause alot of damage - but that's not a risk I would be willing to take.
Yeah, my car could have been in a crash - and apart from doing the usual checks there isn't alot I could do about checking that when making the decision of a purchase. However, not everyone is going to have the ability to repair a car and not put it through the insurance. Any relativley expensive car, or car crash with substantial damage which warrants skill and labour will be beyond alot of people - as not many people will have the money or time to put into a repair. You may be in that position to repair a car, or not put it through the insurance after a crash, but I'd say the majority of people won't be in this position which will limit the amount of cars which go down that route.
I can't comment on selling on category c/d cars as I've never done it. However, I wouldn't ever buy a car previously written off unless, as said, it was my old car or a close friends and I had insider knowledge of it. I'm just too risk averse for that. Also as said, it's in my insurance clauses, that if the car has been in a smash and is a category c/d car, I'd recieve substantially less than the open market value which again puts me off.
Re your sisters payout, thats good for her, as above though - it's in my insurance clauses and seems common from Google searches on the net regarding reduced payouts. I find it very difficult to see how insurance companies would pay out full prices on cars listed on HPI's as crashed (By crashed I mean cat c/d as A/B have to be destroyed) when these cars would have cost less to buy and at an open market value, is less than cars not recorded. As ultimatley, the value your get paid out is based upon condition and market value. In addition, insurance co's are pretty tight and astute, so can't see them paying out more than they would need. I'd expect there to be some additional circumstances (In your sisters case) or that the insurance company didn't know about the previous crash on that car? Or maybe she crashed it only weeks after purchase which constitues market value. Otherwise I could go get a Ferrari cat C/D, pay a lot less, crash it, claim it was ok and be up £30/£40k ... Just doesn't stack up to me mate, you must be able to see this point, there is no logic in that. If the loop whole were that big there would have been many frauds going on over the years. Back to your sister, I'm happy she got more money for the car, as it's better for her, but from what I've read, that goes against the grain.
