What Happens if my Car is Written Off?

Has your car been damaged in an accident? Depending on how bad the damage is and how much it would cost to repair, your car might be written off.

If you're involved in an accident and your car is badly damaged, it might be written off by your insurance company. Even if the damage doesn’t look too bad, it could still be declared a car insurance write-off if the cost of repairing it is likely to be higher than the car’s value. But that doesn’t always mean it’s destined for the scrapyard.

We’ll guide you through everything you need to know about car insurance write-offs, including the different insurance write-off categories, what happens if your car is written off and how to insure a written-off car.

What does it mean when your car’s a “write off”?

If your car is a write-off, it means that it’s either been damaged beyond repair, or to the point that the cost of repairing it would be more than the vehicle’s worth.

Your car insurance provider will decide whether your car should be written off, and they’ll use the following categories to make their assessment.

The different car insurance write off categories

There are four write-off categories: A, B, N and S (this changed from A, B, C and D in 2017).

Categories A and B can’t be repaired and have to be scrapped, whereas N and S are roadworthy if the correct repairs are made.

Category A

Category A cars can’t be repaired. The entire vehicle has to be crushed and can’t be used for parts.

Category B

If your car falls into this category, it can’t be repaired and has to be crushed, but usable parts can be salvaged from it and used as spares.

Category S

These cars have structural damage but can be repaired and driven again. All category S cars will need to be re-registered with the DVLA before being put back on the road.

Category N

Cars in this category are structurally sound but have cosmetic, electrical or non-structural damage that needs repairing before the car can be driven again.

You don’t need to re-register category N cars with the DVLA, but you’ll need to notify them that your car was written off.

What happens when a car is written off

If your insurance provider decides that your car is a write-off, ownership of the vehicle is transferred to them. Your insurer will pay you compensation based on the market value of your car, taking into consideration a number of factors including its age, mileage and condition. The compensation should be enough to replace the car with a similar make and model.

If your car falls into category A, it will be crushed. You'll be able to salvage parts from category B cars using a certified breaker, then the rest of the car will be scrapped.

Your insurer will usually deal with getting the vehicle scrapped for you, but you should follow these steps:

Apply to take the registration number off the vehicle if you want to keep it.
Send the vehicle log book (V5C) to your insurance company, but keep the yellow ‘sell, transfer or part-exchange your vehicle to the motor trade’ section from it.
Tell the DVLA your vehicle has been written off. This is an important one, as you can be fined £1,000 if you don’t tell them.

If your car falls into category N or S, your insurance provider can sell the vehicle on, either to a third party or back to you if you want to keep it.

To keep a category S vehicle, you’ll need to send the log book to your insurance provider and apply for a new one from the DVLA. This won’t cost you anything. You don’t need to do this for a category N write-off.

If my car is written off, am I still insured?

If your car is written off and you decide to keep it, the vehicle would only be fully insured once you get the necessary repairs completed. In fact, your insurer would require a valid MOT to be carried out – dated after the incident – to ensure that the car is roadworthy.

What happens to your policy when a car is written off?

If your car is written off, your insurance won’t automatically be cancelled but you can do this at any time. If the claim is deemed to be a ‘fault incident’ then no refund is given, but if it’s a ‘non-fault incident’, you would receive a pro-rata refund and no cancellation fee to pay. You can cancel your policy at any time.

Should I buy a written off car?

Buying a written-off car can work out as a good deal and save you money, but only if it’s a category N or S vehicle, and only if it’s been repaired properly. Once repaired, the car will need to pass an MOT to ensure it’s safe to drive on public roads.

It’s a good idea to also get the car checked out by an independent expert or an engineer before you buy it. They’ll be able to identify any structural damage to the vehicle so that you know exactly what you’re buying.

If you’re a Saga Car Insurance policyholder and you’ve been involved in an accident, contact us now.