What is the difference between Cat C and Cat D?

Cat C stands for category C, which labels a car when they have been in an accident, fire or flood, and should not be returned to the road unless it is refurbished by a reputable vendor who knows how to make excessive repairs. Also, the cost of the repair would be more than the value of the car. Cat D stands for grouping D, which labels the car as being slightly damaged, but the repairs would cost more than the value of the vehicle.

Cat C or Cat D is used to identify cars that have been written off by insurance companies. A vehicle that is classified as category C has enough damage that the cost to repair the car will be more than the market value of the automobile. The car is written off, and the insurance will pay out the appropriate amount. It is possible to fix the car, but it doesn't make sense financially to repair it. Once the car is classified and the insurance pays the car owner, then the insurance company owns the car.