What happens when your car is written off?
A car write off doesn’t necessarily mean your car is going to the scrapyard, so check out the categories and next steps.
If you’ve been in a major incident and your vehicle is heavily damaged, your car may be written off.
And whilst this doesn't necessarily mean it'll end up at the scrapyard, it's important to understand what a write-off means for your car insurance.
What is a car write-off?
A write-off means that a car is either:
- so damaged that it’s not safe to go back on the roads.
- it may be possible to repair, but it doesn't make financial sense for an insurer to fix.
‘Write-off’ or 'total loss' are entirely interchangeable," says Martin Smith Aviva's Motor Claims Manager "in the world of motor insurance, it's a term used to describe a vehicle when a motor insurer decides not to fund repair works, as it's not economic or possible to do so. They will, instead, make a cash settlement that reflects the market value at the time the loss happened.
"Once the claim is settled," Martin explains "the vehicle should either remain with the owner to dispose of, or more likely the motor insurer will take ownership as part of the claim settlement."
If the insurer takes control of the vehicle, they'll:
- arrange to dispose of it in line with industry approved guidelines.
- tell the DVLA and other interested commercial companies about the category of the write off (more about the categories below). This confirmation means, in the future, a prospective buyer knows the car was written off when making a history check. These checks also cover whether the vehicle was stolen or has outstanding finance.
Why do cars get written off?
Ultimately, an insurer will decide whether a car is too damaged to go back on the road or too expensive to fix up. To help them make this decision, they look at 4 specific categories.
Write-off categories explained
Category A: scrap
These vehicles are usually severely damaged often by fire or flooding and are typically destined to be scrapped.
Category B: break
This category is for vehicles that may have salvageable parts for future use, but the structure (the body shell) must be crushed after parts recovery.
Categories A and B are for cars that suffered extensive damage and are beyond reasonable repair. “These vehicles,” says Martin “have reached the end of their days and must never return to use on the public roads. The DVLA will not issue V5 registration documents for those vehicles on the database shown as category A or B write-offs.”
Category S: repairable structural
Category S cars are ones that suffer severe structural damage, which may be repaired and returned to the road, but the insurer or owner is deciding against the repairs. In this case, it may be the cost of the repairs outweigh how much the vehicle is worth.
Category N: repairable non-structural
Cars that fit this category haven’t suffered structural damage, rather cosmetic or minor damage that’s repairable. But, according to the Association of British Insurers (ABI), “while the damage to the vehicle has been noted as non-structural, there may still be some safety critical items that require replacement e.g. steering and suspension parts.” Footnote [1]
It’s worth noting that while Category S and N vehicles can be repaired, they will carry their salvage category for life. Any repairs should be undertaken by garages that follow the manufacturer’s repair methods or those approved by Thatcham Research, an organisation (funded by UK motor insurers) that specialises in vehicle safety, detailed repair methods and vehicle testing.
“It should be stressed,” says Martin, “that many other garages that aren’t part of an insurer-approved network will be quite capable of undertaking repairs. The important thing is that, wherever work is carried out, it's done according to approved repair methods.”
Should you buy a Cat S or N vehicle?
“They’re not necessarily beyond repair”, says Martin, “and using second-hand parts can help make the work cost-effective in getting the car back on the road.”
“When consumers are purchasing a second-hand vehicle,” Martin explains, “it’s always advisable to have a vehicle history check carried out. This will show if the vehicle has previously been declared a write-off. If the vehicle has a history, then the purchaser should carefully check to make sure they are satisfied it’s been correctly repaired before buying it.”
It’s also worth noting that repair work is not independently checked and there’s no guarantee that a Category S car will be safe. It may be worth paying for an independent mechanic to inspect the car, so you have a full vehicle report.
“If you’re not sure, or if the car is Category A or B up for sale, best advice – walk away,” warns Martin.
What happens to my insurance policy if my car is written off?
Your insurer will assess the market value of your car and tell you how much it’s worth. They’ll look at different factors including its age, mileage, and condition. If you bought your car on finance, your insurer would need to get in touch with your finance provider too.
“Vehicles with a previous total loss history are generally worth less than those without,” explains Martin “both at time of purchase and again in the event of an insurance claim. In the event of a further claim, those vehicles with a salvage marker will be worth less. This may make it more likely the insurer will decide not to repair – and if declared a total loss for a second time, the reduced value will be reflected in any claim settlement offered.”
If my car is written off can I keep it?
While category S and N write-offs can be repaired to a roadworthy standard, some insurers will ask specific questions that could mean they don’t insure the vehicle.
If you wish to keep your category S or N write-off, you should chat with your insurer, so they sell the vehicle back to you for a price you’re both happy with. If your vehicle is a category S write-off, you’ll need to send the logbook to the insurer and apply for a new one from the DVLA, at no cost. You won’t need to do this for a category N write-off.
Also, it’s up to you to tell the DVLA that your car has been written off or scrapped – if you don’t, you could be fined £1,000. Footnote [2] You also need to apply to keep a personalised number plate if you wish to retain it, or it will be cancelled.
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