The sight of a written-off vehicle is heartbreaking at the best of times. If you’re the vehicle owner, it’s even worse.
When is your car considered a write-off?
We may need to write off your car if it’s going to cost us more to have it fixed (back to its original roadworthy state) than is economical. To determine this, we look at the insured value (retail or market value) less the salvage value of the car. If uneconomical to repair, we will pay the financed amount first to the finance house and any available balance to you. The insurance excess will be deducted from the settlement.
When a claim is submitted under your car insurance, we will assess the damage to the vehicle to determine the extent of the damage.
Instead of simply applying a fixed percentage threshold (e.g. if the damage to your car is more than 60% of vehicle’s value) to establish whether the car is a write-off, we reference the historical salvage data for your specific vehicle model and type to determine a more accurate write-off threshold.
What you need to know about written-off vehicle ownership and repairs
In the case of a write-off, you’ll need to provide us with the original registration forms as well as signed change of ownership forms.
If your vehicle is not financed and you prefer to have the vehicle fixed privately, you will need to sign a disclaimer as we will not be responsible for or pay for any unseen damage. However, given the time, effort and risk of the repaired vehicle not being the same as before the incident, due to the extent of the damage, we would strongly advise you to reconsider repairing the vehicle. Please note that if the vehicle is financed, it is the property of the bank, and we’ll have to abide by the code of conduct of the bank in question.
What happens to your written-off vehicle after a claim?
Once we’ve approved your claim, the vehicle will be taken to our salvage contractors and we’ll arrange the change of ownership into OUTsurance’s name, once this is completed the payment of the claim can be processed. All salvaged vehicles are auctioned off by our salvage contractor. Unfortunately, if you change your mind and want to 'buy' your vehicle back after we’ve settled the claim, you won’t have 'right of first refusal' and the only way to secure the salvaged vehicle would be for you to attend the vehicle auction and make the highest offer.
Frequently asked questions about written-off vehicles
When your vehicle is written off, your insurance company pays you the current value of the vehicle, instead of the cost of repairing it. Your insurance company will decide if the vehicle should be written off or not.
Once your insurer has settled your claim, ownership of the written-off car will be transferred to your insurer.
Dependent on the damage and coding of the vehicle and if the vehicle is not financed, we may be able to accede to your request for a cash settlement where you retain the car.
We will be able to insure a repaired write off on the condition that the vehicle passes all the relevant roadworthy and AA tests.
If you’ve opted for our vehicle credit shortfall option, we’ll pay the difference between the insured value of your car and the outstanding amount to the relevant finance company. Your policy wording will provide you with more information with regards to the vehicle credit shortfall option.
In the case of a write-off, we'll pay out the insured value (e.g. retail), minus your excess, dual insurance, betterment, and depreciation.
If your car is written off as a Category A or B, you cannot keep it.
We have specialised assessors who determine what parts we can use, depending on the warranties, age and safety concerns. We also must take into consideration financed vehicles, which means that once the vehicle has been written off, we cannot change this decision as the vehicle is after all still the property of the bank until it’s paid off. We have to abide by the code of conduct signed with the finance house.