Do you really want to know? Having your car written off as the result of an accident isn’t a nice experience. But ultimately it may be for the best, in terms of safety.
A car is written off if it has been damaged beyond repair OR if repairing it doesn’t make financial sense – it might cost more than the car is worth.
How do insurance companies decide to write-off a car?
There are strict guidelines in place. Each insurance company has their own way of calculating the cost of repairs: if these exceed the value of the car, then the car will most likely be considered a write off.
Insurance companies must return the car in the same condition as before the accident. So, while some write-offs may not seem badly damaged, even repairing something like a long scrape can be deemed as exceeding the actual value of the car.
If your car is considered a write-off, you’ll be offered a settlement fee which is generally what you car is worth at the time – not what you paid for it. That’s important to know especially if your car is pretty new.
Read More: Car Insurance Groups: You Need to Know This!
Are there different write off categories?
Yes, usually they fall into four categories:
Category A - Scrap
- Cars placed in this category are irreparably damaged or so old that they have to be crushed and even their car parts can’t be sold second-hand.
Category B - Break
- These cars are still damaged, but some parts can be re-used, if removed by an expert.
Category S - Structurally Damaged Repairable
- Cars that have suffered some structural damage including a twisted or bent chassis. You can’t drive a category S car until it has been professionally repaired.
Category N - Non-Structurally Damaged Repairable
- These cars have no structural damage but do have cosmetic, electrical, or braking damage that isn’t financially worth repairing.
What do insurance companies do with a write-off?
This depends on what category the car is put into. If it’s in Category A or B, it will be crushed. If it’s category S or N, your insurer might sell your car on to a third party to salvage any spare parts.
Do I need to notify anyone that my car has been written-off?
Yes. If you’re the registered keeper, you will have to notify the DVLA if your car falls in Category A, B and S. If you don’t, you could be fined up to £1,000.
What if I still owe money on my car?
If you bought your car on finance, the settlement figure you receive from your insurance provider may not cover what you still owe. This could be quite a chunk of money if your car is quite new – and that’s because of depreciation. If you do have a newish car, check out GAP insurance - it’s a clever and cost-effective way to avoid being out of pocket.
Contact your finance provider as soon as possible to discuss what options you might have. You might be able to buy your car back and fix it using your own money, which could be costly. Or you could use your settlement fee to buy a new car and keep paying off your finance.
