What happens if my car is written off?
Key takeaways
A car can be written off because it’s beyond repair or it’s uneconomical to repair
The insurer will pay you the market value of your car before the accident or damage, minus your excess and any outstanding finance, if applicable
Having a car written-off could potentially impact your no-claims bonus and raise your future premiums
What is a car insurance write-off?
If your car is damaged in an accident, flood or fire or even by something as simple as hitting a pothole in the road your insurance company will assess the extent of the damage and decide if it should be written off.
Your insurance company might decide your car is a write-off (also known as a total loss), if:
Your car is so badly damaged it’s beyond repair
It’s uneconomical to repair, meaning the cost of repair is too expensive compared to the market value of your car
Contrary to popular belief, a written-off car does not necessarily mean your car has to be scrapped, it depends what write-off category it is put in.
📣 Did you know? In 2024 alone, there were 562,185 vehicles written off in the UK, according to DVLA data. That equates to one vehicle being written off every minute.
What are the car write off categories?
Insurers put written off cars into different categories depending on the level of damage and whether they are repairable or not. Since October 2017, these write off categories are:
Write off category | Level of damage |
|---|---|
Category A | The car cannot be repaired and has to be crushed entirely |
Category B | The car cannot be repaired but only the body shell has to be crushed and you salvage other parts from it |
Category N | The car has suffered non-structural damage and if you get it repaired to a roadworthy condition you can use it again |
Category S | The car has suffered structural damage but if you get it repaired to a roadworthy condition you can use it agai |
You might still see older cars for sale which are classed as Category C or Category D. These categories were based on whether the insurer considered the car uneconomical to repair or not and were replaced by Category N and Category S.
If my car is written off how much will I get?
How much money you will get for a write-off (known as a settlement fee) is based on the car’s pre-accident market value minus any excess that you are liable for. If you have the car on a finance agreement then any amount still outstanding to the car finance company or car leasing company will be taken into account too.
🚩 The value is unlikely to be the same price you purchased the car for or took out a finance agreement on, it will be your insurer’s assessment of what your car is worth today.
The payout will also depend on the type of accident you had (own fault or not) and the level of insurance you have:
Third-party only: if you were at fault then your insurer might not to pay out. But if someone else caused the accident you can claim off their insurance
Third-party fire and theft: As with third party only, your insurer may not pay out if you’re at fault but your costs could be covered if another driver is to blame. You’ll also receive a payout if your car is damaged in a fire.
Fully comprehensive: You should receive a payout even if the accident was your fault.
Frequently asked questions
If my car is written off how long before I get my pay out?
The time it takes for a to be paid out by your insurer for a write off varies. It could take days or it could be several months, if you decide to dispute your insurer’s settlement figure.
If my car is written off what happens to my insurance policy?
Your insurance will be cancelled after your car has been deemed a write-off since there is no longer a car to insure.
Every policy is different and so is every insurance provider, but most of the time, your insurer will give you around 30 days to find a new car to switch your policy to.
Unfortunately, if it's not possible for you to obtain a new car within the time frame your insurer has given you, this will count as a cancelled policy that you will have to disclose when you take out another policy in the future.
Making a claim for a write-off is likely to impact your no-claims bonus and raise your future premiums.
Will I get an insurance refund if my car is written off?
No, usually you won’t get a refund from your car insurance provider if you car is a write off, even if you paid annually for your car insurance premium.
Should I accept the first car insurance settlement offer?
No, don’t accept the settlement offer without doing some research on your car’s market value.
If you believe you should be owed more, you can contest the offer. In order to prove to your insurer that your car is worth more, you will usually need to provide evidence.
If you can find your same type of car with similar mileage, age and spec being sold for more than what your insurance company is quoting you, you will be able to dispute their number. However, only one example won’t cut it. If you have a few to back you up, you will have a more solid case to prove that your insurance company should increase their payout amount.
If they don’t increase the amount and you’re still unhappy you should follow their complaints process and, if necessary, you could escalate it to the Financial Ombudsman Service.
Can I buy back my car if it’s a write off?
Yes, you can receive a payout from your insurer and then buy back your written-off car, depending on the extent of the damage and its category. But you should:
Carefully assess the repair costs and ensure that the car can be made safe and MOT compliant
Keep in mind that insurance costs may increase after the vehicle is repaired
Is it worth buying an insurance write-off?
Buying an insurance write-off can be a cheaper way to buy a used car, depending on the cost of insurance. It’s likely to be more expensive to insure and not all insurers will offer cover.
You also need to be certain that the car is safe and roadworthy. Category A and Category B cars should never be repaired and returned to the road but it is possible to buy a Category N or Category S vehicle.
If you’re buying a Category N or Category S vehicle sit’s a good idea to have an independent inspection, as well as running a history check and going through the service history.
Can I insure a written off car?
Yes, you can insure a written off car once it has been fully repaired and passed its MOT and therefore allowed back on the road.
If the insurer doesn’t ask if you car has been written off at the quotation stage, it’s worth telling them after you have a run a quote.
While this may impact your premiums, if you do get into an accident or need to make a claim that involves your insurance provider needing your logbook, and they see the undisclosed write-off, it could invalidate your policy preventing any pay outs for claims or settlement offers for a written-off car.
What happens if I have outstanding finance on a written-off vehicle?
If there's outstanding finance on your vehicle, the insurance payout may not cover it. You might need to negotiate with the insurer or finance provider, or rely on GAP insurance to cover the difference.
Do I need to tell the DVLA my car has been written off?
Yes, you can be fined £1,000 if you do not tell the DVLA that your car has been written off. You can inform the DVLA online via GOV.UK or by post.
If you do it online you’ll need:
Your insurance company’s name and postcode
Your vehicle registration number
the 11 digit reference number from the yellow ‘sell, transfer or part-exchange your vehicle to the motor trade’ section of your log book (V5C)
If you send it in the post you’ll need to complete the yellow ‘sell, transfer or part-exchange your vehicle to the motor trade’ section of your log book (V5C) and send the perforated section to DVLA.
If your insurance company has asked for your whole log book (V5C) write to the DVLA with insurance company’s details and the date you gave them the vehicle.
If you want to keep a personalised registration number you’ll need to apply to take the registration number off the vehicle.
Will I get a VED (road tax) refund if my car is a write off?
Yes, if you inform the DVLA your ca has been written off then you can expect a full refund of any remaining complete months of your Vehicle Excise Duty (VED), also known as road tax. It is not possible to transfer your road tax to a different vehicle.
What do insurers do with written-off cars?
Insurance companies often sell cars that fall into categories S or N. However, cars in categories A or B should be crushed due to the extent of their damage, although some of the parts from a Category B car can be salvaged and sold.
Compare car insurance quotes
Having adequate insurance is crucial for receiving proper compensation if your car is written off. The right insurance ensures that the car's value is compensated. Using MoneySuperMarket to compare quotes can help you find suitable cover that provides peace of mind.
Author
Sarah Tooze
Car & Van Insurance Expert
Sarah Tooze has been a motoring journalist for more than 15 years, specialising in company cars and vans, and has won a number of awards during her career, including the Newspress ‘Automotive...
Reviewer
Beth Leslie
Senior Insurance Content Editor
Beth is an experienced writer and editor who specialises in financial and economic content. She is currently the Senior Insurance Content Editor for MoneySuperMarket. Beth is passionate about making...
