If My Car Is Written Off, What Happens to My Insurance Policy?
If your car has been written off after an accident or damage, it’s normal to feel overwhelmed, not just about the vehicle itself but also about what it means for your insurance policy. Understanding what happens next with your insurance when your car is written off can help you stay calm, make informed decisions, and avoid any surprises when it comes to your cover.
Key points
What Happens to Your Policy If Your Car Is Written Off?
- The Insurer Will Make a Payout Offer: If your claim is approved, your insurer will offer you a cash payout based on your car’s current market value minus any excess you’ve agreed to pay.
- Your Policy Will Likely End: In most cases, once your car is written off and you’ve accepted a payout, the policy will be cancelled. You won’t be insured to drive anymore unless you have another car added to the policy.
- No Refund on Remaining Premium: If you’re paying monthly, your insurer might still expect you to finish paying off the rest of the annual premium. Some insurers will waive this, but many don’t. If you paid upfront, you probably won’t get a refund for the remaining months.
- No-Claims Discount Might Be Affected: Unless the write-off was the result of a no-fault claim, your no-claims bonus may be reduced or wiped out depending on your insurer’s rules. It’s sensible to insure your no-claims bonus at an additional cost, typically between 10–30% of your car insurance policy premium.
- You’ll Need New Cover If You Get a Replacement Vehicle: If you plan on buying a new vehicle after a write-off, you’ll need to purchase a new policy. Use this opportunity to compare car insurance quotes and find a deal that suits your new vehicle and budget.
What Does “Written Off” Actually Mean?
A car is considered ‘written off’ when it’s either too badly damaged to be safely repaired or when the cost to fix it is more than the car’s market value. Your insurer will usually assess the damage and classify the write-off into one of several categories (like Category B, S or N).
Can I keep my written-off car?
Sometimes, yes, especially with Category N or S write-offs. You can buy the car back from the insurer and repair it yourself, but it must be roadworthy and re-registered.
Will my insurer automatically cancel the policy?
Usually, yes. Once a payout is made, the policy is closed. If you want to insure a new vehicle, you’ll need to take out a new policy.
Do I still pay my excess if the car is written off?
Yes. The excess is deducted from your payout or may need to be paid upfront.
In Summary
- Your insurer will assess the damage and offer a payout based on market value.
- The policy is typically cancelled once a payout is made.
- Monthly payers may still owe the full premium.
- Your no-claims bonus might be affected.
- You’ll need a new policy for any replacement vehicle.
Having your car written off is never ideal, but knowing how your insurance responds can help you handle the next steps with confidence.
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