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Is my car a write-off?

Having your car written off isn’t ideal. Not only can it leave you without a car, but it can also cost you money. Whether this is due to an increase in your insurance premium, the cost of buying a new car or the devaluing of your written-off car when it comes to reselling it.

We have taken a look at what a car write-off means and how it works in case you ever find yourself in this situation.

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What is an insurance write-off?

Car write-off

A car that has been involved in an incident where the car is deemed no longer safe to drive on the road or it is uneconomical to repair will be deemed an insurance write-off. Where the insurance company decides that the car is in a state beyond repair, they will offer a cash payout. This can be disputed by the legal owner of the vehicle if they’re not happy with the amount offered.

A car that is deemed uneconomical to repair is based on the repair-to-value ratio, and the insurance company decides that it is better to offer a cash payout than to get the vehicle repaired. If a car has been deemed uneconomical to repair, the owner may still wish to keep the car and repair it themselves, which would result in the car becoming a ‘Category N’ or ‘Category S’ write-off.

When is a car a write-off?

It is the insurance company that decides if your car is a write-off but there are different categories that the vehicle will be classified as, depending on how badly damaged it is. Which category your car falls into will determine whether your car is scrapped or if it can be repaired and get back on the road.

Take a look below at the write-off categories to see which one your car may come under.

A

Category A:

Your car is beyond repair; it is either too damaged or too old. The parts aren’t suitable to be reused on another car and the car is to be scrapped.

B

Category B:

Too damaged or old to be repaired, however, some of the salvageable parts can be sold to be used second-hand.

S

Category S (formerly Category C):

The structure of the car’s chassis is damaged but is repairable. Cat S cars will need to be re-registered before they are allowed back on the road.

N

Category N (formerly category D):

The damage to the car is non-structural and can include superficial, electrical and safety issues including faults in the brakes and steering. These can be repaired but must not be driven until done so. Cat N cars do not need to be re-registered but the DVLA need to be made aware that the car was written off.

What happens if your car is written-off?

If your car is involved in an accident and you put a claim into your insurance provider, the vehicle will be inspected to assess whether the damage is worth repairing. If the damage is so severe and the cost of repair is more than the value of the vehicle, then the insurer will write the car off and claim repairing it to be uneconomical.

The insurer will then offer a payout based on the market value of the car before the incident happened, minus the compulsory and voluntary excess you agreed to in your policy. However, if you don’t agree with the figure the insurance company is offering and you think the value of your car is worth more, you may be able to negotiate the settlement before accepting it. Do your research to back up your claim, or you could even pay to have your own independent report if you are confident that the insurance company has undervalued your car.

If the insurers refuse to change their offer, you can take your case to the Financial Ombudsman Service. There are no guarantees that this will work but it is a free and independent service, so if you feel like you have a good case then it could be worth a try.

If you are looking to get an accurate valuation for a damaged car, you can add any damages in our valuation process. Enter your number plate now to see how much it could be worth.

What to do if the insurer's valuation doesn’t cover your finance

When you buy a car on finance you may not be the legal owner of the vehicle. If you write off a car that is on Personal Contract Purchase, Hire Purchase or Personal Contract Hire, you could find that the settlement figure offered by the insurance company is lower than the amount owed on the car. This means that you could be paying for a car that you no longer drive for the remainder of your finance agreement, or that the finance company asks that the outstanding payments are made in full.

If you have been offered a settlement figure that is deemed to be below the market value of the car, you could go back to the insurance company with evidence that the offer is unfair and below what you would expect to receive with supporting evidence. It may be the case that due to a car finance agreement having high interest payments the amount owed may be more than the value of the car (known as negative equity) - where this is the case you will need to contact the finance company to come to an agreement.

What does the insurance company do with written-off cars?

What happens with your car will depend on the write-off category. If your car has been deemed a ‘Category A’ or ‘Category B’, the car will be crushed, although the latter allows salvageable parts to be saved to use on other vehicles.

If your car is a Category S or N, the car can be sold by the insurance company, either to the original owner or a third party. Cars in these categories may be repaired and sold on to a new owner once repairs have been made, and the price may be less than the equivalent car that hasn’t been written off.

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