If the repair estimate for the vehicle’s damages after an accident is more than the value of that vehicle, then your vehicle is written off or a total loss in the UK. Once your car is written off, you will be paid for it according to its market value to settle.
Your insurers will decide that the vehicle is written off
The car is badly damaged, and it cannot be repaired
The cost of the vehicle repairs is more than the value of the car.
You will only be paid for your vehicle if you agree to scrap it or take ownership of it.
We need to inform the Driving Vehicle License Authority (DVLA) that your vehicle has been written off or off the road; you can also decide to keep it with you if it is not entirely written off.
Steps For the Written-Off Vehicle
The claim process for a write-off vehicle is as follows:
Initial Stage for Claim Submission:
At this stage, after the accident is reported, your insurance company of the accident management company will submit the claim.
Assessment by Insurance Company:
Your insurance company will assess the vehicle damage, and after comparing the repair cost with the market value, it is declared a write-off.
Notification From Insurance:
Once your insurance company decides that the vehicle is written off, it will update you and offer you a settlement amount.
Write off Vehicle Category:
Written-off vehicles are categorised based on the damages. Damages to a car can be structural and non-structural.
Logbook submission:
You must submit your V5 logbook to your insurance company but keep the “sell, transfer for your records.
Notify DVLA:
You must inform DVLA that your vehicle is off the road or written off to avoid penalties.
Registered Owner:
When we contact DVLA to inform them that our vehicle is written off, we must tell DVLA if the owner has changed. About the vehicle owner if changed.
Here are some of the essential points you need to remember:
Negotiate the offer:
If you are unhappy with the offer for a total loss vehicle, you can negotiate the offer and settle the claim on the agreed amount. Sometimes, the insurance company does not offer the best offer, so we can contact our legal advisor for further assistance and information.
Keep your Vehicle Registration Plate:
You can apply to keep your vehicle registration plate even if it is written off.
If we fail to notify DVLA
If we fail to report DVLA about the written-off vehicle, this can result in a penalty.
Vehicle Write-off Categories:
Category A
Vehicles in this category must be scrapped at specific scrapyards licensed to ensure they dispose of all parts.
Category B
Vehicles in this category are never allowed to go back on the road. However, salvageable parts can be removed and later used for other cars.
Category C
Vehicles in this category can be repaired, but repairs cost more than those of cars.
Category D
The vehicle repair cost may be less than the vehicle’s value, but other costs can affect its value limit. If the car is repaired to a roadworthy condition, you can use it.
Category S
Vehicles in this category have sustained structural damage, and the repair cost is higher than their pre-accident value.
Category N
The vehicle in this category has sustained non-structural damage. The repairs could involve replacing the body panels and lights.
What to do if I still have to pay money on my vehicle when it’s written off?
If a vehicle is declared written off, you must speak to your finance provider as soon as possible to inform him about the accident and provide all the information. You will keep paying your finance provider even if your vehicle is written off.
You can also pay your settlement fee to your finance provider for the outstanding payments. You can either continue to pay your finance provider or speak to him to agree on an amount to settle it.
You will not be Insured to Drive if your Vehicle is Written Off
If your vehicle is declared written off, you will not be insured to drive it. Also, you will keep paying your insurance premium till your contract finishes. You will have to pay more next time you have a policy.
The settlement fee will be paid after deducting the excess on your insurance policy. For example, if your car is valued at £7,000 and your excess amount is £250, you’ll receive a £6,750 payout.
The pay-out is almost always less than you paid for your vehicle, especially when you have a brand-new car.
Can I buy a written Vehicle?
Yes, you can buy a new vehicle, but before buying, you need to decide if it’s a good option for you and if the car you want to purchase is professionally checked out.
Before buying a write-off vehicle, you must check whether it falls in Category A or B and has not been scrapped.
The vehicles classified as Category S and N are safe to drive but must pass an MOT test to ensure they are roadworthy.
Can I get insurance for my Write vehicle?
You can get insurance for your written-off vehicle. You’ll need to contact your insurance provider and share the information about your car. Once they approve your vehicle, you can get a policy for it.
What is GAP insurance?
GAP insurance is Guaranteed Asset Protection (GAP) insurance, which makes up the shortfall between the amount you still have to pay for your vehicle beyond repair on finance and the write-off settlement figure offered by your insurer.
FAQ’s
What happens if I do not inform DVLA about my write-off vehicle? You must inform DVLA that your vehicle is off the road or written off to avoid penalties and fines.
You must inform DVLA that your vehicle is off the road or written off to avoid penalties and fines.
What is GAP insurance? GAP insurance is Guaranteed Asset Protection (GAP) insurance.
Who will inspect my damaged vehicle? The engineers will inspect Your vehicle’s damages and prepare the report for vehicle repairs.
