How does that work for resale?
Over here, if the insurer determines that the cost of repair exceeds the value of the vehicle, it is "written off".
There are four categories of write-off (lifted from a UK car site):
Category A write-off: These vehicles are usually burnt-out and they must be totally crushed including all spare parts
Category B write-off: These vehicles cannot return to road and the shell must be crushed, but their spare parts may be salvaged and sold for spares
Category S write-off: Repairable, but cost of repair is more than value of car. Has been determined to have some sort of structural damage (previously category C)
Category N write-off: Again repairable, but it would cost more than the car's value to fix. Shouldn't have sustained any structural damage (previously category D)
Cat S and N cars are common on the resale market, and can be quite a bargain - however, a lot of buyers (myself included) are nervous about these cars - especially Cat S, and will avoid buying them. (When selling a vehicle it is mandatory to declare any insurance write-off)