How to check if a car has been written off?

When financing used cars, it’s important to check if the vehicle has ever been written off. A write-off means that the car was damaged to the point where repairing it is not considered cost effective. This could have a significant impact on both the car's value and safety, and you should fully understand these risks before making a purchase decision.

Some people will try and cover up a car being written off in order to make more money from the sale of a car, so when buying and financing a used car it is important to thoroughly check the vehicle’s history and condition to avoid being caught out.

To help avoid any unexpected surprises, here’s a simple guide on how to check if a car has been written off and the potential risks associated with buying such a vehicle.

What does "written off" mean?

A car is considered “written off” when it has been significantly damaged, and the cost of repairs exceeds its value. When this happens, insurance companies classify write offs into different categories, to indicate the severity of the damage and the car’s future usability. It is important to be aware of these categories so that you can make an informed decision.

Before purchasing a car that has been written off, particularly one that requires financing, you should carefully consider how this affects its safety, long-term value, and the potential difficulty of obtaining financing or insurance.

Write off categories

• Category A: This is the most severe classification. Category A cars must be crushed and cannot be used for parts. It is illegal to attempt to repair or sell a Category A car for use on the road.
• Category B: Similar to Category A, Category B cars must have the body crushed, but parts may be salvaged. However, these parts must meet safety standards before being reused.
• Category S (formerly Category C): A Category S car has experienced structural damage, but can be repaired and returned to the road. You should ensure that repairs are completed to a high standard and seek confirmation from the seller. Additionally, expect that insurance premiums may be higher due to the write-off history.
• Category N (formerly Category D): This classification includes cars that have non-structural damage. Although these cars may appear safe, it's important to check for hidden issues. Insurance costs may still be affected by this classification.

How to check if a car has been written off

Use online vehicle history check services: There are several online services like HPI that provide detailed vehicle history reports, including whether the car has been written off, is on finance, has been stolen, or if there is any discrepancies in the vehicle details. Be sure to use reputable services and double-check the details before making any purchase decisions, as incomplete or incorrect reports could lead to financial risks. You will need the VIN or the vehicle’s registration number to complete these types of checks.

• Check with the DVLA: The Driver and Vehicle Licensing Agency (DVLA) maintains records for all vehicles in the UK. You can request a vehicle history check directly from them, using the vehicle’s registration number. This can be easily done online through the DVLA’s website. This check is important as it helps ensure transparency and confirms that the vehicle’s history aligns with seller description.
• Examine the vehicle’s logbook: The V5C logbook should contain information about any significant damage or write-off status. If the logbook is missing or has gaps in its history, this could be a red flag that the car may have been written off in the past. Missing documents should be carefully considered, and buyers are advised to question the seller directly and seek professional advice if needed.
• Look for physical signs of repair: Inspect the car for signs of repair, such as mismatched paint, panel gaps, or new parts. Check that the repairs have been done to a high standard, as poor repairs could impact the safety and resale value of the car. Looking underneath the car is just as important as the bodywork. While these may not provide definitive proof of previous damage, they can suggest that the vehicle has been repaired and worth questioning further. Remember, safety should always come first when purchasing a vehicle with a write-off history.

Risks of buying a car that has been written off

• Safety concerns: One of the biggest risks is whether the car can be made safe to drive. Even when repaired, a car that has been written off may never fully regain its original safety standards.
• Not eligible for finance: Most finance providers will not finance a car that has been classified as a write-off, particularly if the vehicle is in Categories A or B. This limits your options for purchasing such a vehicle on credit.
• Higher insurance costs: Insuring a car that has been written off typically costs more than insuring a vehicle that hasn't been in an accident. Some insurers may also refuse to cover a vehicle that has been written off, so it is important to check before purchase.
• Warranty: If you buy a written-off car, it may not be eligible for a warranty. Any existing or future warranty may not cover issues related to the original damage, which could result in higher repair costs down the line.

Be sure to carefully assess the risks alongside the potential benefits and always seek professional advice if you are uncertain.

What to do if your car has been written off

When your car is written off, the insurance company evaluates the damage to determine if the vehicle is beyond economical repair. This process typically involves:

At the time of the incident

If you have an accident, clearly your first priority will be for your well-being and the well-being of anyone else involved. Call 999 and request an ambulance if anyone is hurt.

If the road is blocked, the police may also need to attend the scene. If other people involved in an accident do not stop, are uninsured, you suspect a driver is drunk or on drugs, or that the accident was on purpose you will also need police help.

If any of the things described above apply to your situation, and you don’t speak to the police immediately, then make sure they are contacted within 24 hours of the incident.

It is also vital to get the details of other parties involved, and of any witnesses of the accident, to help prove how your car was damaged.

Get the contact information of the other people involved in any accident, and get their car registration. If people stop to help you, ask for their contact information as witnesses. If you have a dash camera, save any coverage of the incident that caused damage to your car.

Contact your insurer

It’s important to contact your insurance provider as soon as possible. This will help you start the claims process more quickly, as it can take some time to complete.

Depending on your insurer, you might be provided with a courtesy car while your claim is being processed, but this will depend on what is included in your policy.

When you contact your insurer, they will give you a claim reference number and outline the next steps in the process. You’ll need to provide all the necessary information, such as details about the incident when and where it happened, and any information about other drivers involved.

Notify your finance provider

If your vehicle is on finance, you need to inform your finance provider that you have had an accident with the car. Since the lender holds a legal title to the vehicle due to their financial interest, it is essential to notify them. Failure to do so may result in complications with your finance agreement or delays in the claims process.

You will also need to contact your finance provider to obtain your settlement figure, which you must provide to the insurance company.

Initial assessment

After an accident, the insurer will send an assessor to inspect the car. This assessment helps identify the extent of the damage and what repairs might be needed.

The assessor will look for visible damage and review the overall condition of the vehicle.

Once the report has been completed, the insurance company will then determine if the vehicle should be written off, or repaired.

Valuation

If the estimated repair costs exceed the car’s market value before the accident, the insurer will declare the vehicle a total loss, or write-off.

The market value is the amount of money the car would be expected to have sold for, if it were in good condition. This valuation considers factors like age, mileage, and condition.

Pay-out

Once the final decision has been made regarding a write-off, the insurance company will pay out based on the vehicle’s valuation amount.

If you have a car on finance, it's important to know that you do not legally own it, so the insurance company will pay the finance provider directly for what you owe on the finance agreement.

In some cases, the insurance pay-out may not cover the full outstanding finance balance on the vehicle. If this happens, you could be left with a shortfall that you will need to pay to the finance provider.

If you have a product like GAP insurance, it can help cover this shortfall on your finance agreement, ensuring that you are not left with unexpected expenses after your car is written off.

GAP insurance

If you have GAP insurance (Guaranteed Asset Protection) it helps cover the difference between your car's market value and the amount you owe on your finance agreement, if your car is written off or stolen.

Typically, GAP insurance is a separate policy from your standard car insurance, so you will need to contact both providers regarding your claim.

Once your claim is approved, any shortfall remaining on your finance agreement will be paid directly to the finance provider by your GAP insurer.

If my car is written off, can I keep it?

If your car is written off, you might still have the option to keep it, depending on the category of the write off and your insurer's policies.

For category S (which involves structural damage) and category N (which involves non-structural damage), you can choose to buy back the car from the insurer, after they pay out its market value.

This option allows you to repair the vehicle and put it back on the road, as long as it passes the necessary safety inspections. It can be a practical choice if you have the means to restore the car, especially if you have a sentimental attachment to it.

Finding a replacement car

If you choose not to buy back the vehicle from the insurance provider and have settled any financial obligations related to it, you can start your search for a new car. You have the option to buy a car privately or to apply for a new car finance agreement.

Most finance providers will require proof that your previous finance agreement has been settled, before they will lend you money again. Therefore, it’s important to keep all your documents and correspondence with the insurance company handy. This way, you can easily provide any necessary information when applying for new finance.

Apply for car finance

If you have found yourself in the situation where your car has been written off and you need a new vehicle, AutoMoney Motor Finance may be able to assist you. Call our friendly team on the free phone number above, or click through to apply for car finance with us.

Representative example

You could borrow £10,000 over 60 months with an initial payment of £490.66 (including £199 Admin Fee) followed by 58 monthly payments of £291.66 with a final payment of £490.66 (including optional £199 Option to Purchase Fee).

Total amount repayable will be £17,897.60.

29.3% APR, annual interest rate (fixed) 24.7%.

This example uses the representative APR. This is the rate at least 51% of customers are expected to get.

Lending is subject to status and additional affordability checks. Rates quoted are subject to change and will depend on lending amount and personal circumstances.

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