A written-off car is no longer roadworthy or too expensive to repair. The ownership usually transfers to your insurance company, and knowing the process can help you better handle the situation.
The insurance company declares the car a write-off when a repair is economically impossible, or the car is beyond economical repair. In other words, it does not necessarily mean you cannot drive it, but its damage exceeds a certain percentage of its value – often 40%. You are allowed to have a re-appraisal but usually, if the repair estimate is still relatively high, an insurer will seldom reverse their ruling.
To find out if a vehicle has been written off, you can do this using a car check tool. Simply enter the registration plate into the service, and it will reveal the write-off date, damage areas, and insurance company. This will also include a detailed history check.
Key Things to Know
- Insurance Coverage
Comprehensive insurance typically covers write-offs, where the car’s market value is paid out before the accident.
- Premium Impact
Filing a claim may impact your no-claims bonus and hence increase your premiums in the future.
- Settlement Offers
If you feel your car is worth more, you can dispute the settlement offer with evidence such as comparable sales.
The Write-Off’s Aftermath
After a write-off, your insurer proceeds to give a settlement depending on the car’s pre-accident value, minus any applicable excess. There are four write-off categories:
- Category A & B
Such vehicles suffer severe damage; they are scrapped or sold for parts.
- Category S (Structural) & N (Non-structural)
Cars can be repaired and returned to the road, though the future insurance premium may be high.
Immediate Steps to Take
- Vehicle Handling
Your insurers often manage how to collect your car and then get it scrapped.
- Personalised Plates
Transfer any personal registration numbers.
- DVLA Notification
Inform the DVLA to avoid penalties.
Can You Buy Back Your Written-Off Car?
Yes, especially if it is a Category S or N vehicle. Consider repair costs and whether the vehicle will pass an MOT. However, such cars might be more expensive to insure.
Challenging a Write-Off Decision
You can appeal to the insurer if your car has some sentimental value or higher market value. You may present listings of similar cars that have the same mileage and features. You may also purchase the car back by subtracting the salvage value from your claim amount.
Insurance After a Write-Off
Once you are written off, your insurance is automatically cancelled. If you have another car, you will need another policy. Other vehicles on multi-car policies are still valid. If you fail to obtain a replacement vehicle within the insurer’s time limit (often 30 days), this can be treated as a lapsed policy and will need to be declared in any future applications.
Annual Premiums and Refunds
You’ll get a refund based on a fault if you pay annually. Non-fault claims may offer partial refunds, whereas at-fault claims rarely do.
Insuring a Previously Written-Off Car
You can insure the car again after repair and passing the MOT. Make sure to reveal its history; otherwise, you risk having the policy invalidated on future claims. If you are not sure whether the car is written off, you can run a reg check, and it will provide all the necessary information such as the date.
Compensation and GAP Insurance
Your compensation will be the car’s pre-accident market value minus excess. If it doesn’t equate to the price of a new car, you can:
- File a Complaint
With the insurer or Financial Ombudsman Service
- Use GAP Insurance
This will cover the difference between the payout and outstanding finance, especially for newer cars.
Road Tax Refunds
Notify the DVLA when your car is declared SORN to cancel road tax and obtain a refund for any remaining full months. Road tax is not transferable between vehicles.
Outstanding Finance
If the insurance payout does not cover any of the existing finance, you will need to approach the insurer or finance company to discuss settlements. GAP insurance covers the difference.
Final Thoughts
Comprehensive insurance ensures proper settlement compensation if your vehicle is written off. Knowing your rights and options during this difficult process will help guide you in the right direction.
