What happens if a car is written off?
If your car has been in an accident or damaged, such as in a storm or flood, your insurer will have the vehicle inspected to determine if it is safe to drive again.
If the car is not recoverable or would cost more than its value to be restored to working order, the insurer will consider it a write-off or a “total loss”.
My car is written off – what should I do?
Your insurer will decide if the car is impaired, it will normally be removed for appraisal first. You can challenge the deregistration if you disagree or have personal reasons for wanting to keep your car on the road.
How does the insurer decide if my car is written off?
What is considered unprofitable depends on the insurance company and how they assess the value of the damaged car.
Insurers will have a repair / value ratio
If a car was worth £ 10,000 and a repair-to-value ratio of 60% applied, an uneconomic repair would have repair costs over £ 6,000
Auto insurance companies employ vehicle appraisers to calculate this
They will inspect the condition of your vehicle and establish the cost of the repair
Why some car radiations don’t appear to be “radiations”
When it comes to repairing a damaged car, insurers should make sure that the car can be returned to a similar condition before it gets damaged.
This can be costly – appraisers will take into account specialized garages and materials
It also means that some radiation may not seem so serious.
This is why minor damage such as a scratch could be classified as a “bankruptcy”.
An insurance write-off does not always mean that a vehicle is not roadworthy.
The Association of British Insurers worked with the Driver and Vehicle Licensing Agency (DVLA) and insurance companies to categorize different categories of write-offs so people know if they can still buy and sell a type of written-off car.
What are the different categories of depreciation?
The Association of British Insurers (ABI) and Lloyd’s Market Association (LMA) have produced a Recovery code which was updated in 2017.
This was to reflect the complexity involved in repairing modern cars which can involve composite materials and complex designs.
What are the categories of radiation?
The revised code removed categories A, B, C, D and made them clearer:
The new categories make it clear that some vehicles cannot be repaired at all. This was to prevent dubious dealers from putting dangerous vehicles back on the road.
Category A (unchanged): scrap
This is just junk and applies to cars that are so badly damaged that they must be run over and never reappear on the road. Even salvageable parts should be destroyed. This vehicle will be classified as waste.
Category B (unchanged): break
The car body must be crushed. There will be significant damage but some parts are salvageable. The car is not roadworthy, although salvaged parts may be used in other roadworthy vehicles. This vehicle will be classified as waste.
Category S (formerly Category C): structurally damaged repairable
Category S means the vehicle has suffered structural damage, such as a bent or twisted frame, or a crumple zone that collapsed in an accident. The insurer decided not to repair the vehicle. Your car will need to be repaired by a professional to be roadworthy.
Category N (formerly category D): repairable without structural damage
A vehicle in this category will not have suffered any structural damage, so it may be a cosmetic issue. For it to be a write-off, there was a problem that was not economical to repair.
Please note that non-structural faults may include brakes, steering or other safety related parts and these may need to be replaced.
Be warned: some C and D category cars that were deleted before the changes were introduced may still be on sale.
Can you insure an N or D category car?
If you can prove that you have fully repaired the car and it is possible to reinsure the vehicle. Not all insurers offer quotes, so you might pay more.
Be warned that some D-Class cars delisted before the changes were introduced may still be on sale.
Can I insure a category S or C car?
If you can show that you professionally repaired the structural damage to the car and it has passed a MOT, it may be possible to reinsure the vehicle. Not all insurers offer quotes, so you might pay more.
Be warned that some Class C cars delisted before the changes were introduced may still be on sale. It will depend on your insurance company, so you will need to check first.
What happens to my insurance when my car is written off?
Your insurance policy will end once the loss is settled and your insurer pays. You can agree to keep your car and have it repaired as long as it is in category N or S. Once the repairs are completed, you will then have to take out a new insurance policy before you hit the road.
To keep an S-category vehicle, you must also:
Send the complete logbook to your insurance company
Request a free duplicate logbook using form V62
DVLA will record the category of the vehicle in the logbook
You can keep the logbook if you want to keep an N category vehicle.
What happens after my car is written off?
What do you need to do
Your insurance company will offer you a settlement amount. If you agree, your insurance company will have the vehicle demolished for you.
The ABI / Lloyd’s Rescue Code states: “In the event of a dispute between the insurer and other interested parties regarding the categorization, the matter should be reported to a suitably qualified person who assumes responsibility for the final decision.
This means that it may be worthwhile to challenge a verdict of nullity and even follow it up with a formal complaint. Insurers sometimes offer low valuations at the opening. You may be able to negotiate a higher value or convince them not to depreciate your car.
If your car is deregistered, you can also:
If my car is written off, how much will I receive?
What you get will depend on what the appraiser recognizes the car is worth before it gets damaged. You probably won’t get the same value you paid for it.
What if I don’t agree with my auto insurer’s write-off value?
Your insurer’s payment should be sufficient to replace your car with a similar vehicle in a similar condition in your area, normally with the deductible deducted.
If you had your car for a few years before it was written off, it is very unlikely that you will get the same money you paid for it.
You may need to research cars of similar age and mileage to show they were worth more than the insurer’s offers. Each insurer will have room for a second, slightly higher offer, if you negotiate.
What happens if my car is written off and it’s not my fault?
Comprehensive insurance will cover you whether you are at fault or not.
If the accident was the fault of the other driver, you would seek damages under their liability insurance policy.
If the other driver is not insured, there is always a way to make a claim through the Office of Automobile Insurers.
What if I don’t agree to have my car deregistered?
You may need to research the prices of similar vehicles – online or in automotive magazines
Make sure anything you’ve done that may have increased its value, like new tires or a stereo, is accounted for.
You can also pay for an engineer report to independently appraise your car
If you and your insurer do not agree, you can file a complaint and take your case to the Financial mediation service. The value of write-offs is a major source of complaints and the ombudsman maintains about half of all complaints
If my car is written off, can I keep it?
While many insurance write-offs are scrapped, a write-off does not automatically mean the end.
A car can be classified into a write-off category based on the severity of the damage, and many scrapped cars find their way onto the road or into the used car market.
Conduct a cancellation
Cut and closed engines are vehicles when two parts of a car are merged. They may have been the rear of a car in a frontal crash and the front of a car in a rear crash.
These vehicles are not roadworthy, the DVLA estimates there were around 30,000 cuts and closures on UK roads in 2018.
The best way to make sure you don’t own one is to have your vehicle checked by the RAC or AA.
Should I buy a depreciated car?
You can find a good deal in the used car market if you are willing to buy a car that is already depreciated, but it is important to understand what each category means and what damage the car has suffered.
Class A and B cars should be scrapped, so if you see one for sale, it’s best to avoid it (unless you buy a B class car to collect parts only)
Cars in categories N and S must be able to drive again in complete safety once they have been repaired by a professional
Once a car has been repaired, it will need to be re-registered and pass a technical check to make sure it can drive safely. You should check with the seller if this has already been done or if they are selling it as a renovator.
It’s also worth considering resale value, as previously written-off vehicles tend to be worth much less, even after being repaired.
If my car is written off, what happens to my insurance?
Your insurance will end when you receive payment from the insurer. Previously depreciated cars cost more to insure and some insurers do not cover them at all.
Can I insure a car that has already been written off?
It is not impossible to find coverage and just shop around comparing quotes (and making sure to always report the status of the car to your insurer).
Compare car insurance quote to find out how much it can cost
Ensuring a cancellation
If you are fully aware of all the downsides of a written off car, you may decide that the potential savings are well worth it.
Reduce your insurance costs with a multi-car insurance policy.
If you have more than one car
If you are a family with several drivers
If you are a couple with several vehicles
Compare quotes for short-term or temporary auto insurance