3 Important Things You Should Know about Your Car’s Write-off
Contrary to the common assumption, a car insurance write-off doesn’t necessarily mean that your car has been totally destroyed. In fact, a write off means the cost of a car’s repair is more than your insurer thinks its worth. This is also called a total loss.
For example, if your car is 12 years old and meets with an accident, the cost of its repair would possibly exceed its value and then it would be written off. In this case, your insurance company would offer you a settlement or payout which should be sufficient to replace your car with another one of the same value.
1. Write-off Categories
The insurance write-off categories of ABI depended upon the cost of repairs until 1st October 2017. But now they are based on the car’s condition and safety to drive it.
A: Unfortunately, the A category cars can only go to the scrap yard.
B: Cars in this category are seriously damaged and ideally should not return to the road. However, if they are significantly valued financially or emotionally, they can be repaired.
S: These are cars with structural damage; but they can be repaired and return to the road; however, you have to register your car again with the DVLA.
N: N category write-offs can also return to the road again. The reasons for their write-off are non-structural like damaged lights or scratches. They are not needed to be re-registered, but you should tell the DVLA that about their write-off.
2. Effect of Write-off on Insurance
There can be three things with your insurance in case of write-off:
- If your insurance doesn’t have any outstanding claim on it, a refund will be given to you for the remaining months on your policy (with a cancellation fee).
- If there is already a claim and you pay for your insurance yearly there won’t be any refund.
- If there is a claim and you pay monthly, you’ll have to continue with your installments till the date of your policy renewal.
Fortunately if you want to replace your old car, you can get insurance for the new car. However, this obviously means that you’ll have to pay to insure two cars simultaneously.
3. What can You Get if Your Vehicle is Written Off?
This may be your topmost concern. Your car’s market value before it was written off will be calculated by your insurance company. They will consider its condition, mileage, age etc. and offer you what they think its worth is so as to help you replace it with a similar car.
So, are you now clear with write-off and how to deal with it?