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Zuto Customer Service

What if my car is written off whilst still on finance?

If this is a position you’ve found yourself in, the first thing we want to say is don’t panic. We know it can be an upsetting and stressful time when you’ve had a car accident. And, if you, a family member or a friend was hurt in the accident, the last thing we want you to be worrying about is what’s going to happen to the finance on the car.

A car that has been written off essentially means it will cost the insurance company more money to fix the car than what the car is worth. Determining which category it has been classified in will enable you to understand whether the car is still roadworthy, or not.

  • Category A: Scrap - This vehicle is deemed not suitable to be repaired. Must be crushed without any parts being removed. This vehicle will be classed as waste.
  • Category B: Break - The vehicle is deemed not suitable to be repaired. Usable parts can be recycled. This vehicle will be classed as waste.
  • Category S: Structurally damaged repairable - Repairable vehicle that has sustained damage to any part of the structural frame, or chassis and the insurer/ self-insured owner has decided not to repair the vehicle.
  • Category N: Non-structurally damaged repairable - Repairable vehicle which has not sustained damage to the structural frame, or chassis and the insurer/ self-insured owner has decided not to repair the vehicle. While the damage to the vehicle has been noted as non-structural, there may still be some safety-critical items that require replacement such as steering and suspension parts.

If your car is a total write-off, your insurance company will offer you a settlement figure for the car which should be based on the current market value. You’ll then need to contact your lender who provided you the car finance originally and they will advise on the best next steps, which should consist of the option to pay off the finance using the settlement figure and take out new finance on a new car.

Written by

Mike Barlow

Content Manager

Mike has worked at Zuto since 2018 and uses his experience within the industry to help customers understand the ins and outs of car finance.

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