Being involved in a car accident is a stressful situation in more ways than one, especially if your car is declared a write off. Most of the time, it is clear that a car cannot be repaired after an accident, but it can sometimes be harder to tell until the vehicle is taken to a garage. If your car is declared a write off, there are elements to look out for and steps you can take.
Our guide will cover how car insurance companies decide whether a car is written off, what happens when a car is declared a write off, and the steps you should take following a theft or accident.
Insurers will declare a car a write-off, also known as a total loss, when the vehicle reaches a certain criterion. If the cost to repair the car is more than its pre-accident market value, or the car is declared permanently unsafe to drive, then it is considered a total loss.
Your car insurer will usually assess the market value of the car based on its age, mileage condition before the accident and its history against the cost of repairs; if the repairs are considered to be more than 50-70% the cost of the car, it will be declared a write-off. Insurers will also assess features such as the chassis and the safety system to determine whether safe repairs are even possible.
Criteria to determine whether a car is a write-off is separated into four categories, A, B, S and N:
● Category A: the car is declared to be “total scrap,” and must be crushed, as no parts can be salvaged
● Category B: the car has been severely damaged, so the shell of the vehicle must be scrapped, but certain parts can be saved
● Category S: the car is structurally damaged, and the insurer cannot cover the repairs, but it can be adequately repaired and driven again
● Category N: applies to cosmetic, electrical or interior damage that is too expensive to repair.
If a vehicle is declared a total loss because it is stolen and your insurer pays out, but is later recovered with little to no damage, this falls under Category X.
If your car insurer has declared your car a category S or N write-off, having policies like GAP insurance in place can help go towards the repairs or a new car if the insurance payout isn’t enough. You can find out more about our GAP insurance policies here.
Once your car has been declared a write-off, it falls into one of the four categories. Once this has been decided, there are a few steps that take place:
● Your car insurer will work out how much to pay out based on the market value of your car before the accident minus the policy excess.
● If your car is declared a Cat S or N write-off, you can decide whether or not you want to buy back the car from your insurance company. If you decide to do this, you must also pay for any repairs and pass an MOT before you can drive it again.
● Inform the DVLA that your car has been written off, no matter whether you decided to buy it back or not
● Ask about any road tax refunds that you may be entitled to
● Consult your GAP insurance provider to inform them of the write-off; they will bridge the gap between your car insurer’s payout and the market value of the vehicle at the time of purchase, or any outstanding finance, whichever is higher at the time of claim
As well as the points mentioned previously, there are other steps to take if your car is declared a total write-off.
● Gather personal items from the car and any paperwork: salvage all personal items (even rubbish) from the vehicle if this is possible, and gather paperwork such as your service book and MOT certificate, and any car keys.
● If you do not agree with your car insurance provider’s payout, you can negotiate a better price by gathering evidence such as current online market valuations.
● Remove any custom registration plate via the government’s personal plate service if you wish to keep it
● Start looking for a new car as soon as possible, especially if you need one for work
If your car is completely written off, your current car insurance policy ends, and the car insurance company takes ownership of the vehicle. Your car insurer will pay out what they believe the vehicle to be worth before the accident; if the car was on finance or leased, the bulk of the money will go towards paying off that debt first.
If the accident was your fault, you will likely lose your no claims bonus and your future insurance costs will rise; the latter may happen regardless of whether the accident was your fault or not.
Writing off a car can be expensive, especially if you don’t get the payout you were hoping for. Policies like GAP insurance can create a financial safety net if your car is written off or stolen, helping you bridge the gap between the car insurance payout and the price of the vehicle when bought (different rules apply for cars on finance).
You can find out more about our GAP insurance policies here.
A vehicle is declared a total write-off when the cost to repair it exceeds 50-70% of its market value or when the damage makes it unsafe to drive even when repaired. Any safety systems that are broken or faulty, such as the airbags or seatbelt pre-tensioners, may also render the car a write-off. Cars will also be declared a total loss if they are stolen and never retrieved.
Cat A means the vehicle is completely destroyed/damaged and must be scrapped, Cat B means it is mostly damaged, but some parts can be saved, Cat S refers to a car that is structurally damaged and could be repaired, but the insurer won’t pay for it, and Cat N contains ant car that has suffered cosmetic damage that is too expensive to repair.
Yes, you can check the write-off history of any vehicle by paying for an official vehicle history check sing the vehicle’s registration number. Please note that our GAP insurance here at ALA cannot cover cars that have previously been written off.
You must provide:
Once your insurance company has declared the car a complete category A write off, the vehicle must be given to an Authorised Treatment Facility (ATF), which your insurer usually handles for you. You must hand over your logbook to the ATF or your insurer, and you will be issued with a certificate of destruction.
Yes, but only if it has been declared a category S or N write off; category A and B vehicles are non-salvageable.
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