When your car is damaged, the question of whether or not it’s a write-off quickly comes to mind.
In Australia, many factors go into this determination, such as the value of the car and the extent of the damage.
So when is a car a write-off? We’ll explore what exactly goes into deciding whether or not a car is a write-off in Australia, and how to tell if your car will be written off.
What is a Write-Off?
But first, what exactly is a write-off?
A write-off is a car that is determined to be too damaged or expensive to repair. In Australia, a car can be written off if the cost of repairing it would be more than the car is worth. An insurance company makes this determination after assessing the damage to the vehicle.
If your car has been involved in an accident, the first thing you should do is call your insurance company (if you need more help with what to do after an accident, check out our complete guide here). They will then send out an assessor to determine the extent of the damage and whether or not the car is a write-off.
There are three categories that a written-off car can fall into in Australia: statutory write-off, repairable write-off, and salvage.
Statutory Write-Off
Statutory write-offs are the most severe and mean that the car cannot be repaired or registered for road use again. In most cases, the car will be sold for scrap and you will not receive any compensation from the insurance company.
Repairable Write-Off
Repairable write-offs are less severe and as the name suggests, the car can be repaired. However, it must be repaired by a licensed repairer and you will need to get a safety certificate before the car can be registered again.
Salvage
The third category is salvage. This is when the insurance company decides that it is not worth repairing the car but some parts of the car may still be usable. The car will usually be sold at auction and you will receive a percentage of the sale price.
How to Tell if Your Car Will Be Written-Off
If you’re in an accident, you may wonder how badly your car has been damaged and whether it will be written off.
Several factors will be considered when determining whether a car is a write-off, and the decision ultimately rests with your insurance company.
The most important factor is the cost of repairs. If the cost of repairs is greater than the value of the car, then the car will be considered a write-off.
Other factors that can contribute to a car being written-off include:
- The severity of the damage
- Whether or not the car can be safely repaired
- The age and condition of the car
- The availability of parts
- Whether or not the car has been in an accident before
Generally, you can expect your car to be a write-off if it has:
- Been in a serious accident
- Sustained major damage to the engine, transmission, or chassis
- Sustained significant fire or flood damage
- Been stolen and not recovered
- Been heavily vandalised
What to Do if Your Car is Written-Off
If your car is written-off, the first thing you need to do is call your insurance company.
They will let you know what the next steps are and may provide you with a rental car or a settlement amount.
If you’re not happy with the settlement offer, you can negotiate with your insurance company or file a claim with your state’s insurance authority (which is SIRA in NSW).
You should also contact your lender if you have a car loan. They may require you to get gap insurance to cover the difference between what you owe on the loan and the value of the car.
Car Not a Write-Off? Get it Repaired!
If you’re in an accident and your car isn’t a write-off, then you’ll need to take it to a choice smash repairer for your insurance company.
Adams Smash Repairs is a team of experts in repairing all vehicles and works with all major insurance companies. We’ll make sure your car is repaired quickly and to the highest standard, so you can get back on the road as soon as possible. Get in touch with us today to book your car for a repair.
Only minor damage and want to have a crack at repairs yourself? Check out some of our helpful guides:
