What happens after you write-off your car?

Once your car has been in an accident or collision, it then becomes a toss-up between the actual worth of it being repaired or scrapped. There are a number of factors that determine whether your vehicle is worth saving and how the insurance company or provider ends up making the final decision. 

  Car written off? Here’s what you need to know 

When a car is declared a "write-off" or "totaled," this means the insurance company has determined that repairing the vehicle is either physically impossible or economically unviable. This decision is based on the cost of repairs relative to the car's insured or market value. Insurers typically perform a thorough evaluation to confirm that the repair costs exceed a predetermined percentage of the car's value, which is outlined in the insurance policy. The threshold varies from insurer to insurer, for example, it might be set at or between 45%-70% of the total insured value of the vehicle.

For those with Car Insurance who haven't experienced an accident, their policy generally specifies when a car qualifies as a write-off. If the repair costs exceed the threshold mentioned in the policy—like 45% of the car's insured value—the insurer may deem it uneconomical to repair, and the car will be written off. In such cases, the insured party typically receives a payout equal to the car's insured or market value, minus any excess, etc. This process also involves a cost-benefit analysis, ensuring that the claim aligns with the terms of the policy.

To break it down, the following would be factored in:

  1. Cost of the damage versus total retail value 
  2. Salvage value (insurers calculate how much your car is worth by the time it’s rendered useless).
  3. Policy threshold 
  4. Safety and liability (age or condition)
  5. Additional costs (admin, etc) 

It’s also worth noting that older vehicles with extensive damage are more likely to be written off compared to newer models. 

  Is it worth having your car repaired?

Again, the determining factors would be decided by your insurer. However, if your car isn’t insured and you’re still financing the vehicle, it’s a different story.  

The decision to have your car replaced or repaired is made in consultation with your chosen financial institution and an authorised vehicle inspection agency, such as DEKRA Automotive (a leading supplier of Roadworthy Tests in South Africa). The vehicle will then be assessed by the agency to determine if it complies with safety regulations and whether it remains roadworthy. 

If your car passes the inspection but needs a touch-up here and there, the next step will be car repairs—provided you have the funds available to proceed. When it does come time to choose a workshop for the repairs, make sure that it meets specific standards to avoid potential problems in the long run.

For additional peace of mind, getting a roadworthy certificate will come in handy should you decide to sell your car at a later stage.

Finding the right car repair services and mechanics in South Africa

Once you’ve established your car is roadworthy but still needs a few repairs, there are a few things you need to consider. From sourcing reputable companies like RMI (Retail Motor Industry) to following word-of-mouth recommendations, whatever you choose, you’ll be able to spot a good mechanic from a mile away. 

How to pick the right Car Insurance Policy?

Car insurance offers different options suited to meet budgets of all kinds. However, the type of coverage should align with your overall needs, not just your budget. If you’re able, it’s best to avoid paying out-of-pocket for expensive repairs, and this is where the right insurance cover provides relief and peace of mind when it matters most.

There are two important types of car insurance that MotorHappy can assist you with. 

Comprehensive Car Insurance 

Comprehensive Car Insurance provides full coverage in the event that your vehicle experiences events related to fire, car theft, hijackings, natural disasters, or major accidents. 

Keep in mind that if your car is under a finance agreement, most loan institutions or South African banks will require this type of car insurance. 

Third-Party Only, Fire and Theft Insurance

Third-Party Only, Fire and Theft Insurance safeguards your car against fire, hijackings, and car theft. If you’re in an accident, your insurance will pay for Third-Party costs, any damage done to your own car will not be covered.

This type of policy would be worth your while if you drive an older vehicle if it’s paid off, and/or lost its value. 

The future of your vehicle

There are so many factors at play here, and you’re wondering where to begin. The outcome will come down to the circumstances you find yourself in. For example, if you’re financing a vehicle, you’d take a different approach to someone who has already paid off their vehicle. 

Always be on the lookout for additional benefits and unique rewards included with insurance policies, such as the MotorHappy DRIVE programme.  Searching doesn’t have to be challenging – if you’re looking to shop around for the best Car Insurance quotes, MotorHappy will happily assist. 

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