Total loss, also known as a ‘write off,’ can be a difficult experience for car owners. Whether it’s due to an accident, or that your car has been stolen - it’s good to know what total loss means, the types of total loss, and the effects it can have on your insurance policy. In this section:
- What is total loss?
- Categories of total loss
- What happens if my car is written off?
- What if my car was stolen?
What is total loss?
A total loss or ‘write off’ means your car is damaged beyond repair, or it costs more to fix than what it’s worth. If your car is in bad shape, insurance companies may call it a total loss. They’ll check the damage before deciding.
Categories of total loss
There are four types of total loss:
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Category A (Scrap)
- The car must be scrapped because it’s not safe to drive.
- No parts from these cars can be reused.
- The registration is cancelled, and it can't be driven again.
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Category B (Break)
- The frame of the damaged car must be destroyed as it can’t go back on the road.
- Category B cars are severely damaged, but some of their parts can be salvaged and reused.
- The car’s registration is also cancelled, and it can’t legally be driven on the road again. There’d also be a marker against the car’s registration, so the category status would show in any HPI checks.
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Category S (Structural Damage)
- The car has structural damage but can be repaired.
- The repair cost is still higher than the car’s value.
- It must be checked for safety but could still be driven again.
- Once repaired and approved to be safe to drive on the road by a qualified engineer, a Category S vehicle can be driven again.
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Category N (Non-Structural Damage)
- The car has non-structural damage, like electrical issues or interior damage.
- After repairs and passing a safety check, Category N vehicles can go back on the road.
What happens if my car is written off?
After an incident, tell your insurance company what happened and if there’s been any damage. This is when your car may be declared a write off. But your insurer will inspect your car to see if it can be fixed. Not all car damage is visible, so it’ll need a full inspection to make sure all damage is recorded. They’ll also check the age, mileage, and condition of your car before deciding its value.
If your car is declared a total loss, your insurance company may give you money instead of repairing it. You’ll get this minus any excess you agreed to pay as part of your policy. Your car will either be scrapped or given a salvage title if it’s a Category B loss.
If your car’s declared a total loss, you could keep your insurance policy and change it to cover a new car if you buy one. If you cancel your policy, you usually won’t get a refund, as a claim has been paid.
Looking to insure a replacement car now? Why not check out AXA’s car insurance and get a quote.
What if my car was stolen?
If your car is stolen, call the police right away and report it. Give them all the details and ask for a crime reference number. After that, inform your insurance company so they can log it on your policy.
At AXA, if your car is stolen and not found, it'd be considered an 'unrecovered theft' claim. We'd settle based on the car's current market value
If the car is found before we settle: we’ll check the repair costs and the car’s value, pre-accident, and then decide if it can be fixed or declared a total loss.
If the car is found after we settle: we’ll do the same checks, but if it's a total loss, it will be scrapped. And the salvage category will be recorded on the MIAFTR (motor insurers anti-fraud and theft registrar). If it can be repaired, the salvage agent will sell it at auction. The salvage category will be recorded as an “uncategorised total loss” on the car’s registration.
Experiencing a total loss, whether from an accident or theft, can be distressing. Knowing the types of total loss and what happens next can help you understand your rights and responsibilities as a car owner. So, if the worst happens, you’ll know what to expect.
