If the repairs estimation of the vehicle 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 vehicle is written off, you will be paid for that vehicle according to its market value to settle.
Your insurers will decide that the vehicle is written off
- The vehicle is badly damaged, and it cannot be repaired
- The cost of the vehicle repairs is more than the value of the vehicle.
You will be paid for your vehicle only if you agree to scrape your vehicle or take ownership of your vehicle.
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 your vehicle with you if it is not completely 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 decides that the vehicle is written off, they will update you and will offer you a settlement amount.
- Write off Vehicle Category:
Written-off vehicles are categorised based on the damages. Damages to a vehicle can be structural and non-structural.
- Logbook submission:
You will need to 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 need to tell DVLA if the vehicle owner has changed. About the vehicle owner if changed.
Here are some of the important points you need to remember:
- Negotiate the offer:
If you are not happy 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 will not make 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 – The vehicle in this category must be scrapped at specific scrapyards licensed to make sure that they dispose of all parts.
Category B The vehicles that fall in this category are never allowed back on the road. The vehicle salvageable parts can be removed and later used for other vehicles.
Category C
The vehicles in this category can be repaired, but the repairs cost more than the vehicle’s cost.
Category D
The vehicle repair cost may be less than the vehicle’s value, but the other cost can affect the limit of its value. You can use the vehicle if it’s repaired to a roadworthy condition.
Category S The vehicles that fall in this category have sustained structural damage. The cost to repair the vehicle is more than its pre-accident value.
Category N The vehicle that falls in this category has sustained non-structural damage. The repairs could be to do with the body panels and lights which need replacing.
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 need to speak to your finance provider as soon as possible to inform him about the accident and provide him with 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 make your payment to 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 when you will 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 vehicle.
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 vehicle you want to purchase is professionally checked out.
Before buying the write-off vehicle, you need to check if a vehicle falls in Category A or B and is not scrapped.
The vehicle classified as Category S and N are safe to drive and will need to pass an MOT test to make sure it’s 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 vehicle. Once they approve your vehicle, then you can get a policy for your write-off vehicle.
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.
What is GAP insurance?
GAP insurance is Guaranteed Asset Protection (GAP) insurance.
Who will inspect my damaged vehicle?
Your vehicle damages will be inspected by the engineers, who will prepare the report for vehicle repairs.
