There are a few things that can lead to your car being written off. In most instances, it results from bad accidents. The damage can also be caused by water or fire. In any case, your car will be written off when it is either so damaged that it is unsafe to drive or when the cost of repair would be a lot more than the current value of the car.
What do you do when your car is written off? Well, you need to fully understand what being written off means and the full implication. Here, we will briefly discuss the most important things you need to know and then suggest the best way to handle the situation.
What Is A Car Insurance Write-Off?
A car write-off is an insurance term that is used to categorise a car as a total loss. It is normally done after an accident, flooding, or fire incident - when a car is seriously damaged. An insurance company will write off a car when it is beyond repair or the cost of repair is higher than the current value of the car.
When your car is written off, ownership is transferred to the insurance company, and you will receive a cash payout that is equivalent to the value of the car if it were sold in its pre-accident condition. The amount you will be paid if your car is written off is called a settlement figure. What you can do after a car is written off depends on various factors.
There are four categories of car write-off, including A, B, S, and N.
* A means car is only fit for scraps and should be destroyed.
* B means the body is significantly damaged and should be crushed, but undamaged parts can be salvaged.
* S means the car is structurally damaged and is unsafe to drive until professionally repaired.
* N means the car has suffered non-structural damage and may not be drivable at the time.
What Happens When A Car Purchased On Finance Is Written Off?
If your car was purchased on finance and you still owe the lender, things can be a little complicated. If the settlement figure is lower than what you owe, the implication is that you will be paying for a car you no longer have. You can negotiate with the insurer if you feel the settlement figure is below the pre-accident value. It is also important that you contact your lender as soon as possible to see if you can come to an agreement.
You can also use the settlement to buy a second-hand car and continue to pay your lender. If your car is categorised S or N, you may also consider buying it back.
Can You Dispute The Decision To Write-Off Your Car?
Yes, you can dispute the decision to write-off your car if you feel the insurance assessor is wrong. Some do this when the car is of sentimental value to them. In any case, you can negotiate with the insurance and request that you keep the car and settlement value, minus the salvage value. You will need to arrange for repairs as the insurance is unlikely to do that.
Can You Buy Back Your Car That Has Been Written Off?
Yes, you can buy back your car that has been written off, but only if it is under category S or N. You also need to inform your insurance company about your intention in time. Some have contracts with salvage firms they sell to and may be reluctant to consider your offer. A little negotiation can get you a deal, however.
What you do after your car has been written off depends on the category of the write-off, your financial situation, as well as whether you agree with the insurance assessor. Depending on these factors, you can decide on the next step to take. The information in this post can guide you accordingly.
