If your insurer writes off your car, it will usually pay you the car's market value from just before the loss, minus your excess, and then take ownership of the vehicle. You can sometimes keep the car instead, but the payout is reduced. Either way, the insurer assigns a salvage category (A, B, S or N) and reports it, so the write-off stays on the car's history.
Here is how the process normally works, and what it means whether you are the owner or a buyer looking at an ex-write-off.
Why does an insurer write off a car?
A car is declared a total loss when the cost of repairing it, set against what the damaged car is worth as salvage, makes repair uneconomic compared with its pre-accident value. This can follow a crash, fire, flood or theft where the car is not recovered. There is no single fixed percentage, and each insurer makes its own judgement.
What happens step by step
- Assessment: an engineer inspects the car, or reviews photos, and decides whether it is repairable.
- Valuation: the insurer offers a settlement based on the car's market value, using trade guides and similar adverts. Your excess is deducted.
- Finance is settled first: if the car is on finance, the insurer pays the finance company before you.
- Paperwork: you usually sign the car over and send in the V5C logbook, keys and any spare keys.
- Reporting: the insurer records the write-off category and reports it to the DVLA and the industry MIAFTR database, which is how later buyers can find it.
Can you keep a written-off car?
Often you can, but it is called retaining salvage. The insurer deducts the car's salvage value from your payout, and you take on the repair, storage or disposal. The category still applies, and you generally cannot get it removed. Check with your insurer first about what the category allows and what the process is for your V5C.
Write-off categories explained
Since October 2017 the UK uses four categories:
- Category A: scrap only. The car should be crushed and nothing can be reused.
- Category B: break only. The shell must be crushed, but some parts can be reused. It cannot go back on the road.
- Category S: structurally damaged (for example the chassis or frame). It can be repaired and returned to the road once properly fixed.
- Category N: non-structural damage. It can be repaired and returned to the road, though it may have had serious damage to brakes, airbags, electrics or other components.
Older cars written off before 2017 may carry the former Category C or D markers instead.
What if the car is on finance?
The insurer pays the outstanding finance first. If the payout is less than what you still owe, you are normally responsible for the shortfall. GAP insurance, if you bought it, is designed to cover that difference, so check your policy terms. Any amount left after the finance is cleared goes to you.
What if you disagree with the valuation?
You do not have to accept the first offer. Gather evidence such as adverts for comparable cars (same age, mileage and specification), your service history, receipts for recent work such as new tyres, and photos showing the car's condition. Send these to the insurer and ask for the offer to be reviewed. If you cannot agree, you can make a complaint and, if it is still unresolved, refer it to the Financial Ombudsman Service, which is free to use.
What happens to your policy and no-claims discount?
Once the claim is settled, the policy on that car usually ends or needs to be transferred to a replacement vehicle. Your no-claims discount depends on your insurer's rules, who was at fault, and whether you have protected it. A claim where you are not at fault and recover your costs may not affect it, but this varies, so ask your insurer directly.
What buyers should know about ex-write-offs
A Cat S or N car can be legally repaired and driven, and it is usually priced below a similar car with no write-off history. The trade-offs are that some insurers charge more or decline cover, resale can be harder, and repair quality varies. If you are considering one, ask for photos of the damage, repair invoices and proof of the parts used. An independent inspection is a sensible extra step. Cat A and B vehicles should never be sold as roadworthy cars, so treat a seller claiming otherwise as a red flag.
Before you buy any used car, check the registration on motorpeek.com for signs of a write-off marker, plus the stolen marker, outstanding finance, MOT history, mileage patterns and the number of previous keepers. Motorpeek is an independent service, not a government body, and no check replaces a thorough inspection. Having the facts in front of you puts you in a much stronger position when you negotiate or walk away.
The short version
- The insurer pays the pre-accident market value minus your excess.
- Finance is cleared before you receive any money.
- You may be able to keep the car for a lower payout.
- The write-off category is recorded and stays with the car.
- Buyers should always check a car's history before handing over money.
Frequently asked questions
Will I get the full value of my car if it is written off?
You get the car's market value from just before the loss, not necessarily what you paid for it, and your excess is deducted. If you think the offer is too low, you can send the insurer evidence of comparable cars and ask for a review. If you cannot agree, you can complain to the Financial Ombudsman Service.
Can a written-off car go back on the road?
It depends on the category. Cat A and Cat B cars cannot be put back on the road. Cat S and Cat N cars can be repaired and driven again once they are properly fixed and roadworthy, but you should tell your insurer, and some insurers charge more or decline cover.
Does a write-off stay on a car's history permanently?
Generally, yes. The category is recorded by the insurer and reported to the DVLA and the MIAFTR database, and repairing the car does not usually remove it. That is why a vehicle history check is worthwhile before buying a used car.