My Car Has Been Written Off: What Happens Next?
Updated Oct 3, 2026 · Daniel Moreau · 6 min read
A total loss decision can come as a shock. Here is how the payout is calculated and how to challenge a low offer.
What this article covers
An insurer declares a car a write-off (total loss) when repairing it would cost more than it is worth, or when it is unsafe to repair. You then receive a cash settlement instead of a repaired car.
The amount you receive is open to negotiation.
How the value is calculated
Insurers usually pay the market value of the car just before the incident — what it would cost to buy a similar car of the same make, model, age, mileage, and condition. This is often based on trade valuation guides and advertised prices.
Deductions from the payout
- Your policy excess
- Outstanding finance, paid directly to the lender
- The salvage value, if you choose to keep the car (where allowed)
Challenging a low offer
Look up advertised prices for comparable cars, matching specification and mileage as closely as possible. Gather evidence of recent work, upgrades, low mileage, or exceptional condition. Write to the insurer with your evidence and ask them to reconsider. If they will not budge, most countries have an ombudsman or regulator you can complain to.
Categories of write-off
Many countries categorise written-off cars. Some categories mean the car must be crushed; others allow it to be repaired and returned to the road, though its record will show it was written off. This affects its future resale value.
Do not forget
Remove personal belongings and any accessories you paid for. Cancel or transfer road tax and any breakdown cover where relevant. If you have GAP insurance, contact the provider promptly to start a claim for the shortfall.
This is general insurance information, not legal, financial, or insurance advice. Coverage depends on your specific policy, insurer, and jurisdiction. Read your policy documents and speak with a licensed insurance agent or broker before making decisions.