If your car or van has been written off – also known by insurers as a “total loss”, you might be wondering what happens next. Do you need to cancel your policy? Will you get any money back? In this post we’ll explain what happens to your insurance if your vehicle is written off.
What is a Write-Off?
There are two main situations when a vehicle might be written off:
- It has suffered structural damage which cannot be safely repaired.
- The vehicle can be safely repaired but it is not economically viable to do so.
There are different write-off categories – A, B, S, and N. You can read our full guide to what these write-off categories mean here.
What Happens After a Write-Off?
This will depend on the insurance you have in place. Vehicles are typically only covered for total loss (write-offs) under comprehensive car insurance policies. However, if a vehicle is stolen and then involved in an accident or damaged beyond repair, this may also be covered under a third party, fire and theft policy. So the information below relates primarily to comprehensive policies, but some elements may also apply to third party, fire and theft cover where theft leads to a total loss.
If your vehicle is involved in an accident and you make a claim on your insurance policy, your insurer will assess the damage to determine whether the vehicle is roadworthy and if the repair costs are viable. If the damage is extensive, they may consider it a total loss and declare the vehicle a write-off.
They may then offer you a settlement fee based on the value of your vehicle. The settlement fee is meant to provide you with enough money to buy a replacement vehicle of a similar make, model, year, specifications, mileage, and condition to your vehicle. Your insurer may deduct your policy excess when calculating this settlement. If you accept this settlement, your insurer will then take ownership of your vehicle.
Can I Choose To Keep My Vehicle?
If you don’t want to give up your vehicle and want to complete the repairs yourself, you may be able to offer to buy the vehicle back but this will depend on the damage severity and the written-off category assigned to your vehicle. You should fully evaluate repair expenses to ensure the vehicle will meet safety and MOT standards once the work has been completed.
If your vehicle is declared a write-off, it will be added to the Motor Insurance Anti-Fraud and Theft Register by your insurer, and the damage will be noted on Hire Purchase Interest records. Even if you decide to keep the vehicle or cancel your claim, these records will stay with the vehicle, which could make it harder to sell or insure in the future.
What Happens To My Insurance if My Vehicle is Written Off?
What happens next will depend on your insurer so you will need to check your policy wording.
In most cases, you might be given a period of time in which to find a new vehicle which you can then switch your current policy over to. If you do not get a new vehicle within this period then your insurer may cancel your policy.
If you’ve got any questions about what will happen to your vehicle after it’s written off, check out our Claims FAQs.
