How Insurance Providers Determine Write-Offs On Vehicles

“Sorry, but your vehicle is a write-off.”

Not words anyone wants to hear after an accident but sometimes it’s just not possible or cost-effective to repair your car.

Here, we explain how insurers decide if your car is a write-off and what happens if they do.

It All Begins With An Inspection

When you’ve had an accident, your car could still be driveable or it may be towed directly to an accident repair centre. Before any decision on repairs is made the vehicle is thoroughly inspected.

Typically, an inspection will document all visible damage and evaluate the structural integrity of the vehicle. An inspector will consider whether the damage is structural or cosmetic, could it potentially be repaired and do parts need replacing or could they be restored.

Calculating The Cost Of Repairs

If your vehicle is deemed to be repairable the next step will be a calculation of costs. This includes labour, parts, and any additional expenses required to restore the vehicle. Repair shops provide detailed estimates, and sometimes multiple quotes to ensure accuracy.

Calculating Your Car’s Market Value

Knowing what your car is worth is a key factor in whether it’s considered a write-off. Even if the damage is relatively minor, if it’s an older car and not worth much it may not make financial sense to repair.

Insurers work this out by comparing the estimate of costs to your vehicle’s pre-accident market value, also known as the Actual Cash Value (ACV). The ACV is determined by looking at the age of the vehicle, its make, model, mileage and condition.

When Does An Insurance Company Write Off A Vehicle?

Each insurer will have its own specific thresholds when they decide a repair is no longer viable and a vehicle is a write-off. Usually, this is expressed as a percentage of the ACV.

If your vehicle is deemed a write-off it’s classified into four different categories based on the severity of the damage:

• Category A (Scrap) – Your car is too old or damaged and it will be scrapped. Its parts can’t be used for salvage
• Category B (Break) - As above some parts can be removed re-used or sold as second-hand provided they’re removed by an expert
• Category N (Non-structurally damaged repairable) – Structural integrity is intact, damage is cosmetic but repair cost is too expensive
• Category S (Structurally damaged repairable) – Structural damage sustained and repairable but not cost-effective

What Happens If My Car Is A Write-Off?

If your vehicle is a write-off, ownership transfers to the insurer and they will offer you a settlement based on its Pre Accidental Value (PAV), allowing for any excess. Your insurer will take care of all scrappage requirements but you’ll need to inform the DVLA your car is a write-off.

If your car is a Category S or N you may be able to buy it back from the insurer and pay for repairs yourself although owning a car under this category may lead to higher insurance costs.

You can dispute the settlement figure they give you if you believe it’s too low.

Choosing EvolveArc means opting for top-quality repairs, exceptional customer service, and peace of mind. Contact us today!

Image Source: Canva