If your car is written off, it means the insurance company has assessed the damage and decided it is either impossible or uneconomical to repair the vehicle. Here are the key things that happen:
- Your current insurance policy on that car becomes invalid immediately—you are no longer insured to drive the vehicle, even if it can still be driven.
- Ownership of the car transfers to the insurance company, which is then responsible for disposing of the vehicle. This usually involves scrapping the car or selling it for parts depending on the damage category.
- The insurance company pays you a settlement based on the current market value of the car, minus any excess on your policy. This payout is often less than what you originally paid for the car due to depreciation.
- You will not receive a refund for any insurance premiums already paid but may have to continue paying premiums for the remainder of the policy term.
- After a write-off, your insurance premiums may increase when you take out a new policy or if you buy back and repair the written-off car.
- You must report the write-off to the relevant vehicle licensing authority (e.g., DVLA in the UK), or you could face a fine.
- Depending on the write-off category (A, B, S, N), some cars can potentially be repaired and returned to the road, but others must be scrapped.
- You may have the option to buy back your written-off car from the insurer if it falls under certain categories (usually non-structural damage), but it will affect future insurability and reliability.
In summary, a written-off car means the insurer considers repairing it not cost-effective, resulting in loss of your vehicle ownership, a payout reflecting its current value, and possible consequences in terms of insurance and vehicle registration.
