Explaining car write-offs

Is Your Car a Write-Off?

If you have comprehensive insurance and your vehicle is involved in an accident, your insurance company must decide whether it makes more sense to repair it or write the car off. Insurers often use the terms “beyond economical repair” or “total loss” in these situations. If the cost of repairs exceeds the current market value of the vehicle, it will be declared a write-off.

A car might be deemed beyond economical repair if:

It has a low market value (e.g., older cars).
The cost of parts and repairs is very high, even for newer cars.
Other costs, such as vehicle transport and storage, courtesy or hire cars, and sourcing rare parts, when combined with the repair costs, outweigh the vehicle’s value.

Another reason a car can be written off is if it has sustained so much damage that it would be unsafe to ever go back on the road.

If an insurance company writes off a car, it means they’ll retain ownership of the vehicle, and you’ll receive a payout for its loss.

Who Decides If It’s a Write-Off?

The insurance company appoints an experienced vehicle assessor to examine the car. Based on the extent of the damage and the cost to repair it to its pre-accident condition, the assessor will make a recommendation to the insurer.

Car Write-Off Categories

The car write-off categories focus on the type of damage and repairability, rather than repair costs alone. The categories are:

Category A (Scrap):

Vehicles that are so badly damaged they must be destroyed completely, including all parts.

Category B (Break):

Vehicles with significant damage where the body shell must be crushed, but some parts can be salvaged and used in other vehicles. The car can never return to the road.

Category S (Structurally Damaged – Repairable):

The car has sustained structural damage (e.g., to the chassis or frame) but can be repaired and safely returned to the road.

Category N (Non-Structurally Damaged – Repairable):

The car has no structural damage but may have other issues, such as electrical or mechanical faults. After repairs, it can be driven again.

The system aims to remove more dangerous vehicles from the road and provide greater transparency for used-car buyers about the history of a vehicle. It also ensures that only qualified professionals assess and grade write-offs.

Your Car Has Been Written Off – What Happens Next?

If your car is confirmed as a write-off, your insurer will send you a reimbursement offer, minus any policy excess (the part of the claim payable by you). If you accept the offer:

Send your vehicle logbook (V5C) to the insurer but keep section 9 (the yellow slip V5C/3).

The vehicle becomes the insurer’s property. For Category A and B write-offs, they’ll arrange for disposal. For Category S and N, the vehicle may be sold on to someone in the motor trade.

What Is the Write-Off Value of Your Car?

When assessing the write-off value of your car, the insurance assessor will consider:

Make, model, and age: The type and age of the vehicle.
Condition: The general state of the car (excluding accident damage), including bodywork, interior, mileage, and modifications that affect value.
Market value: The price the car would have sold for at a reputable dealer before the accident or theft.

What Can You Do If You Disagree With the Valuation?

If you believe your car was worth more than the insurer’s offer, you can:

Ask the insurer to reconsider.
Provide evidence, such as listings of similar cars for sale at local garages or on reputable websites.

If you still can’t agree, you can escalate the issue to the Financial Ombudsman Service, which will review the case and provide a fair, legally binding decision. Note that they may not always side with the consumer.

Should You Inform DVLA About a Write-Off?

Yes, you must inform the DVLA if your car has been written off. Your insurer will usually handle its disposal. You can notify the DVLA online or send section 9 of your logbook (V5C/3) by post. Failure to inform the DVLA could result in a fine of up to £1,000.

Can You Keep a Written-Off Car?

If your car is a Category S or N write-off, you may be able to buy it back from the insurer. Here’s how:

Inform your insurer early that you’re interested in buying it back.
Agree on a write-off valuation with your insurer. You’ll be reimbursed this amount, minus any excess.
The car becomes the insurer’s property. You then negotiate a separate deal to purchase it back.

Will Insurance Be Affected by a Write-Off?

Insurance companies will cover Category S and N write-offs, provided the vehicle has been repaired to a safe standard. They may request:

An engineer’s report.
A valid MOT.

It’s crucial to inform your insurer if the vehicle you’re insuring was previously written off. Failure to disclose this information could invalidate your policy or result in prosecution for insurance fraud.

We hope this updated guide helps you understand the car write-off process. If you’re purchasing a used vehicle, always verify its write-off history and ensure all repairs were done to a professional standard.