Car write off categories -
We translate the jargon

Car accidents are already pretty terrible, but finding out your car is a ‘write-off’ can be the icing on the world’s worst cake.

What’s more, having your car declared a write-off can often come as a surprise, especially if the accident was minor or the damage was superficial. This is because your insurers will consider the cost of repairing your car and compare it to its value. If it’s too expensive to repair, then it’s a write-off.

You can, of course, dispute these claims. You can even buy the car back and repair it yourself from your insurer if it holds a lot of sentimental value to you. However, this has its own problems and pitfalls, not least being that many insurers won’t insure a car that has been written off. If an issuer does, it will likely be more expensive.

It is therefore no surprise that most people opt to scrap their car in this situation; in fact, this is the main contribution to the number of cars that are scrapped every year. According to data retrieved from a Freedom of Information (FOI) request by Autocar, “798,363 vehicles were destroyed from January to October 2023”, which sounds like a lot (because it is), but the good news is that is “60,000 less when compared to the previous year.”

But even though car write-offs are on the down, it still pays to know what to do if you ever find yourself in a worst-case scenario. The last thing you want is to be stuck in an accident and not sure what to do, especially while you are already so stressed. That’s why we are here to take you through some of the jargon, the reasoning behind some common situations, and what your best options are.

What do the write-off categories mean?

There are four different categories of write-offs, each describing a different reason for why the car is to be considered a write-off.

The current categories are:

• A – All of car to be scrapped
• B – Car to be scrapped but some parts can be sold off
• N – Car can be repaired following non-structural damage
• S – Car can be repaired following structural damage

However, originally, it was:

• A – All of car to be scrapped
• B – Car to be scrapped but some parts can be sold off
• C – Car can be repaired, but costs of repair outweigh value of car
• D – Car can be repaired, but costs of repair and additional costs, such as transport and admin fees, outweigh value of car

The categories were updated in 2017 to better reflect the reasoning behind writing the car off, and to better emphasise the safety aspect of write-offs.

This does mean, however, that some older cars may be registered as a category C or D rather than as S or N. Regardless of it being a C, D, N, or S category, the insurers will write these cars off rather than repair them because it does not make financial sense to repair the car due to its value and cost of the repair.

The exact number differs for every insurer, but the general rule of thumb is that, if it costs more than a certain threshold of your car’s value to repair – usually around 60% –your insurer will say that it is too expensive to repair and write it off.

What will happen to my vehicle

When a car is written off, the vehicle will be retained by your car insurer, meaning that ownership will transfer over to them. Keep in mind that, if your insurer writes off your vehicle, your insurance is officially cancelled, which means that you are no longer entitled to certain perks, such as courtesy cars. Even worse, it is very unlikely that you will be able to get any refund for your insurance premiums – and will probably have to continue paying your premiums until the end of your contract.

However, there is an exception – if your car was insured under a fleet insurance policy, then your insurance will still be in effect, and you can still drive the other cars.

What happens next to your car depends on the category of write-off. All Category A cars will be crushed for scrap – the whole of the vehicle is dangerous and needs to be permanently removed from the road. Category B vehicles also need to be permanently removed, but there will be components of the vehicle, such as the engine, that can be salvaged and sold as parts.

For Category S or N, your insurer will be able to sell the car on, either to a third party or back to you if you wish. It's important to remember that, even if a car is a Category N write-off and there is no structural damage, that doesn’t mean the car will be safe to drive – electronics and steering issues do not count as structural damage after all. So, if you do decide to buy the car back, make sure to have it professionally repaired before attempting to drive it.

On that note, if you are in the market to buy a write-off car in the hopes of finding a bargain, which is very possible, make sure that either you or someone you bring along is qualified to give the car a proper look over before buying, checking every aspect of the car and ensuring that it has been properly repaired and safe to drive.

What do I do next?

After a write-off, there will be a few things that you will need to do.

You will need to inform the DVLA that your car has been written off; not doing this could cost you even further, as you could be fined up to £1,000 for forgetting. You will also need to apply to take your licence plate off if you want to keep it.

If you accept the settlement, you will need to send your insurer your logbook (V5C). Before you send it off though, remember to take out the yellow ‘sell, transfer part-exchange your vehicle to the motor trade’ section and keep that for yourself.

If you don’t accept the settlement and would rather buy the car back from the insurer, then you will need to send them your entire logbook (yellow section and all) and apply for a duplicate logbook from the DVLA if your car is category C or S.

If your car was a Category D or N, then good news! You don’t need to send the DVLA your logbook or apply for a new one, so that’s one less thing to worry about.

How does the settlement work?

The settlement will be the value of your car before the crash minus your insurance excess. This means that, if your car was worth £2,000 and your excess was £250, you would receive £1,750. Insurers will have specialist assessors who will evaluate your car and judge its market value and they will arrange for this.

Keep in mind, though, some insurers might be open to some small negotiation about the value of the vehicle, but we wouldn’t recommend you expect any drastic deviations from the original stated quote. If you feel that the pay-out is substantially less than the car is worth, you can make a formal complaint to the Financial Ombudsman Service.

Left over finance on a write-off

You must communicate with your financial provider and let them know that the car in question has been written off. From there, there are a few different options available to you. The settlement may be enough for you to get another car while you continue to pay off your finance, or it might be enough to pay off your finance outright.

No matter what, the best thing to do is to continue to communicate with your finance provider and discuss what the best options for you in your situation is.

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