Been in an accident and your car is a write-off? You might be wondering, if my car is written off, how much will I get? Don’t worry; we’ve got you covered. Here’s what happens next when your financed car is declared a write-off.
First things first, don’t panic! Crashing is It’s every driver’s nightmare – you’re out and about, driving along as normal, and, suddenly, you’re involved in a crash. Car accidents are stressful, especially if your vehicle is on finance. Not only are there potential injuries and repair headaches, but what happens if your car is written off? Dealing with insurance companies and a totalled car while still making loan repayments can feel really overwhelming. Let’s clear things up and guide you through what happens next if your financed car is declared a write-off.
What is an Insurance Write-Off?
Are There Different Types of Car Write-Offs?
What Happens if Your Car is Written Off?
How Long Does it Take for my Settlement Figure to be Paid Out?
So, What Happens if you Write Off a Car on Finance?
Your car will be seen as a write-off if one of the following things is true:
It's important to remember: Even if your car looks like it can be fixed, it might still be a write-off. Insurance companies look at the total cost of repairs and the car's value. If the total is more than the car's worth after repairs, it's likely a write-off.
For example: If your car is worth £5,500 but needs £6,000 of repairs, it's probably a write-off. This is because the total cost is more than what the car is worth when fixed.
Yes! Insurance companies use four categories (A,B,S,N) to classify written-off cars. Make sure you understand each category, and make note of which your car falls into.
The Government website gives some really good information on the different types of write-off. See their website here.
Remember: This information is for general guidance. The specific details of your situation will depend on your insurance policy and the severity of the damage to your financed car.
If you are not happy with the insurance company's decision, you can challenge it. Usually in this position however, most people accept the settlement offer. The settlement offer will basically be what the car was worth pre-accident. Once you have accepted the settlement offer, the car’s ownership is transferred to the insurance company. At this point, you'll have to find a new car.
However, there is one crucial detail to consider: you still have outstanding finance on the car.
Once you have accepted your settlement figure, your insurance company will work to process your payment. However, the time it takes to receive the money can vary depending on the situation of the write-off and your own insurers’ policies.
Dealing with a written-off financed car involves two key players: your insurance company and your lender. Here’s a breakdown of the process:
Remember: This is a general overview. The specifics may vary depending on your individual circumstances and loan agreement.
Yes, you’re generally still responsible for your car finance payments even if your car is written off. This is because the loan agreement is separate from the car’s physical condition.
Here’s why transparency is key:
Be upfront and honest. By being clear, you can navigate this situation more smoothly and get to an outcome that is good for you.
A car accident is a stressful experience, but getting back behind the wheel doesn’t have to be a setback, especially when you still have financing on your written-off car.
We understand the urgency of finding a new car. Figuring out what to do when your loaned car is written-off is tough. This is where Marsh Finance comes in.
Here’s how we can help you get back on the road quickly and smoothly:
Don’t let a written-off car stall your life any longer. With Marsh Finance, you can get a free, no-obligation quote and get back on the road quickly.
We understand that dealing with a write-off and car finance can be a burden. That’s why we’re here to support you throughout the process. Let’s get you back in the driver’s seat with a car you love and a finance plan that works for you.