05 November 2024
Everything you need to know about a car write-off
5 minutes
If your car is damaged in an accident, your insurer could either pay you out for the damages to your vehicle or declare your car a write-off.
Road accidents aren’t the only reason your car can be written off. If your vehicle is severely damaged by fire, flood, or another disaster, it could be declared a write-off.
The term “car write-off” includes various categories with different implications for your vehicle and whether you can still use it.
In this article, we will take you through:
- What a car write-off is
- The different insurance categories of car write-offs
- What to do if your car is declared a write-off
Read on!
What does written-off mean?
If you make an insurance claim because your car has been severely damaged, one of the potential outcomes is that it will be written off. This means that your insurance provider has decided one of two things:
- Your vehicle is damaged beyond repair.
- The cost of repairs to your vehicle is so great that it makes more financial sense to “write it off” rather than to fix it.
It’s up to the insurance provider to decide whether your car is a write-off.
If your car is written off, you transfer the ownership of it to an insurance company. They keep the car until a decision is made about its future.
What happens when your car is a write-off?
What you can do with your vehicle after a write-off depends on the insurance category it falls into.
If your insurer decides your vehicle should be scrapped, they will make the necessary arrangements for this to happen.
In some cases, you may be able to use your vehicle again. If you would like to do so, the insurance company can sell it back to you.
We’ll take you through the different categories of insurance write-offs and what they mean for your car’s future.
Insurance categories: write-off
Category A: The entire vehicle has to be scrapped.
Category B: The body shell of the vehicle has to be scrapped but you may be able to salvage some parts from it.
Category C: While the vehicle can be repaired, it will cost more than the vehicle’s worth.
Category D: Your vehicle can be repaired for less than the vehicle’s worth. However, other costs, such as transportation of it, mean that it costs less to write it off.
Category N: There has been no major damage to the structure of the vehicle but the insurer has decided it’s not economical to repair it. (The N stands for Non-Structurally Damaged.
Category S: There has been structural damage to your vehicle and the insurer has decided it’s not economical to repair it. (The S stands for Structurally Damaged.)
What you should do if your car is declared a write-off
If your car is declared a write-off, your insurance provider will arrange for the car to be scrapped or repaired.
But there are certain steps that you will have to take yourself.
The most important is to let the Driver and Vehicle Licensing Agency (DVLA) know your vehicle has been written off. If you don’t, you could be fined £1,000.
You can let the DVLA know that your car has been written off here through the government’s website. To do so, you will need to provide the following information:
- Your insurance company’s name and postcode
- Your vehicle’s registration number
- The 11-digit reference number from the yellow section of your vehicle’s log book (V5C). This section deals with ‘selling, transferring or part-exchanging your vehicle to the motor trade’. Head here for our full guide on navigating your vehicle log book.
What is my car worth if it is written off?
When your car is declared a write-off, your insurance company will pay you out for your car’s value. They work out the value by looking at your car’s make and model and seeing what this type of vehicle would be worth on the current market.
The newer and more expensive your car is, the higher your insurance premiums (the amount you pay for your coverage) are likely to be. That means, when you pay your insurance costs, you are securing yourself against the expensive repairs or replacement that could come your way if your car is ever damaged.
So, the money you’ve put in to insure your car will help you get back what it’s worth if it is ever damaged.
If my car is written off, how much will I get?
Your insurance will pay you a settlement which will usually be based on the value of the car minus the excess (the amount you have to pay in for an insurance claim).
That means, for example, if your car is worth £18,000 and your excess is £3,000, you will receive a payout of £15,000.
If you bought your car on finance, you could land up in a situation where the insurance payout doesn’t cover the amount you still owe on the car. If this is the case, talk to both your insurance provider and financer to see if you can come to an arrangement.
Getting your car on the rode again after a write-off
Can you remove a write-off from a car?
If you would like to drive your car again after it has been written off, it will first have to be repaired to a roadworthy condition.
You will only be able to do this if it’s in a category C, D, N or S (meaning the vehicle has not been scrapped). The insurance company will give you an insurance payout and sell the vehicle back to you if it falls into one of these categories.
Registering a car that has been declared a write-off
When it comes to ensuring that your car is correctly registered with the DVLA after being declared a write-off, the process is slightly different depending on the category your vehicle falls into:
- For categories D and N, you can keep your vehicle’s logbook. You do still need to inform the DVLA that the vehicle has been written off.
- For categories C and S, you will need to send the completed log book to your insurance company and apply for a new duplicate log book. You can do this for free with the V62 form. We give you the lowdown on everything related to the V62 form here.
Insuring and taxing a car that has been written off
Your car will no longer be insured once it’s written off.
Before you get on the road again, you must ensure that your vehicle is taxed and has at least third-party insurance in place. This is a legal requirement in the UK — driving a vehicle that is not properly taxed and insured can result in hefty fines and even prosecution.
The first step is to get a MOT (Ministry of Transport) certificate to show that your vehicle is roadworthy. Not only is this a requirement for most insurers but also necessary for you to tax your car.
Taxing your vehicle is a simple process that you can complete here.
If you need help putting motor insurance in place, speak with us. We’ll find you a plan that’s a good match.
To sum up
- A car write-off is a declaration by an insurance company that your car is either damaged beyond repair or that the cost of the repairs is greater than the replacement value.
- When your car is written off, you essentially sell it to the insurance company. They will then take care of scrapping it or repairing it.
- If your car is written off, you must notify the DVLA to avoid a fine.
- Your insurance will likely pay you a settlement that is based on the market value minus the excess.
- Car write-offs are divided into various categories. Categories A and B refer to vehicles that have to be scrapped, while categories C, D, N, and S refer to vehicles which have the potential to be used again.
- If you would like to keep your car after it has been written off, you will have to buy it back from your insurer. You must then make sure that it is roadworthy, properly taxed, and sufficiently insured before getting it back on the road again.
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