Car written off: what happens next, step by step

1. The assessment

After you make a claim, the insurer has the car assessed. If repairs would cost too much compared with what the car is worth, or the damage is too severe, the insurer may decide it's a total loss (written off).

2. The offer

With a market value policy, the insurer offers what it assesses the car was worth just before the loss. With an agreed value policy, the offer is based on the amount set out in your policy. You can ask for the valuation the offer is based on.

3. Deductions

The settlement may take off amounts such as the excess. What's deducted or added depends on your policy, so check each item against your policy and the insurer's settlement letter.

4. Settlement and the car

Once the settlement is agreed and paid, the insurer generally takes ownership of the car. If the car is under finance, part or all of the payment may go to the lender first.

Cars assessed as a total loss are generally recorded on a written-off vehicle register. What that means for the car's registration depends on your state, so check your state guide.

If you disagree with the offer

You can ask questions, send evidence and use the insurer's complaints process. AFCA is free and independent if a complaint isn't resolved. See the guide on disputing a total loss valuation.

Do I get to keep my written-off car?

Generally the insurer takes ownership once it pays the claim. Ask your insurer, because it depends on the policy and the type of write-off.

What if I still owe money on the car?

If the car is under finance, part or all of the settlement may be paid to the lender first. Your insurer and lender can confirm the amounts.