If you’ve been involved in a road accident and your insurance company has declared your car a write-off (or total loss, in insurance-speak), it can be hard to know what to do. What even IS an insurance write-off, anyway?

If you’re happy to get a new car anyway, this may not be such bad news for you. But if your car is your baby, hearing that it’s life is over can leave you feeling bewildered. Unless you’re well-versed in insurance jargon, it can be tricky to navigate a total loss situation. These tips will help you get the situation sorted.

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What Is an Insurance Write-off?

A total loss or insurance write off means that the damage your vehicle from the crash has made it either unsafe or too expensive to repair. Usually what is meant by this is that your insurer predicts that the parts, paint,s and labour that would go into getting your car back to normal would total more than 50-60% ofyour car’se market value before the incident.

The ‘repair up to’ value (the amount that your insurance company would be prepared to pay for the repair) will depend on who you’re insured with, and in some cases, the age and value of your car. (For example, a vintage car will often be cheaper to repair than replace, even if it is severely damaged, as rare cars can be really valuable.) You may be able to push back on the decision to have your vehicle deemed a write-off, but this will usually only be possible if the repair costs don’t way overshoot the insurance company’s “repair up to” threshold.

How Much Will the Payout Be?

Your insurance company will work out the “pre-accident value” (PAV) of your car to determine what your payout will be. The PAV is the value your vehicle would fetch on the national used vehicle market if you’d sold your car, instead of being involved in a crash. This value is worked out with the help of sites like Autotrader, which people worldwide use to source used vehicles. Once your insurer has come up with that value, they will offer you a cash payout, less any excess you’re obliged by your T&C’s to pay.

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But I Paid More For My Car!

Your payout should enable you to buy a replacement car. Bear in mind that you won’t be able to afford a new vehicle off the lot, as the PAV is based on the value of your car on the day you last drove it, not the day you bought it. Your PAV should enable you to your local used vehicle dealer (https://www.newtonsofashley.com/used/christchurch is always a great bet) and replace your vehicle with something of a similar size and spec.

Even better, if you were already leaning towards a preloved family car for your next purchase. If you’ve had a look at available used cars and you think your PAV was too low, it’s worth raising this with your insurer. You can dispute the PAV, but be ready to give examples of similar vehicles for sale at a higher price.

Whether your car is your pride and joy, or you’re quite glad of the opportunity to replace it, a write-off can be overwhelming. These points will help you get the situation sorted out.