Benefits
My car is a write-off: what does my insurance cover?
If your vehicle is written off in an accident, your insurance company will pay out. But how much money will you get? And is it your full casco or partial casco insurance that pays? Comparis explains what you need to know.
22.02.2024
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1. What is a write-off?
A write-off means: after damages occur, the repair costs are higher than the current value of the vehicle. There are two types of write-off: structural and economic.
Structural write-off
After an accident or a natural disaster, repair is no longer technically possible. Example: the car is completely burnt.
Economic write-off
The repair costs are higher than the current value. Example: the current value of the car is 15,000 francs. Meanwhile, the repair costs come to 18,000 francs.
Stolen vehicles are also considered economic write-offs after 30 days.
Insurance: when is a car a write-off?
At what point different insurers classify a car as a write-off varies. The threshold can be found in the General Conditions of Insurance (GCI). Good to know: car insurers often set the threshold for a write-off low. This means your car may be considered a write-off even if the repair costs are lower than the value of the vehicle.
Example: after an accident, you pay 15,000 francs to repair your car. The purchase price was 20,000 francs. This means the repair costs are 75% of the purchase price. However, the insurer writes the vehicle off.
Confirmation of a write-off
Would you like to claim your car as a write-off from your insurer? Then you need confirmation that the car is a write-off from a specialist.
In some cases, the insurance company arranges this. In other cases, you’ll need to take care of it yourself. Review your contract.
2. My car is a write-off: which insurance provides cover?
There is no specific insurance for written off vehicles. Which insurance will pay out depends on the type of write-off.
Did the actions of a third party lead to your car being written off? If so, the culprit’s liability insurance pays out. However, you won’t receive the full current value. The insurance company deducts the residual value of the car.
In some cases, partial casco pays out for a write-off. This includes natural hazards such as floods and hail, as well as theft and fire.
Are you responsible for the write-off? Full casco insurance will cover the costs here. Depending on your policy, this may also include parking damage.
Leased vehicles need full casco insurance in the vast majority of cases. If written off, the insurance company usually pays the residual value to the lessor. This arrangement is an integral part of the leasing agreement and is referred to as the assignment.
Does a high payout if my car is written off also mean high premiums?
There is no connection between premiums you pay and the amount paid out if your vehicle is written off. Various factors determine what you pay for premiums. Insurance companies offering good benefits, like high payouts, can also offer low premiums.
Are your premiums high? You can change your car insurance policy when making a claim. It’s best to compare different insurance policies. This will help you find the right one for your car.
3. How quickly does insurance payout after a write-off?
The processing time depends on the accident. Investigations with the authorities or the workload of vehicle assessors may delay the payout. In addition, the insurance company must determine the car’s residual value.
The residual value is the value of the vehicle after the accident. In the case of an economic write-off, the value is often determined by expert opinion.
Tip: it's a good idea to contact a specialist, such as your garage. They can assess whether or not you should sell the car after a write-off.
4. My car is a write-off: what does my insurance cover?
Payout is usually the current value or the vehicle value. If you want to sell the car yourself, the insurer will deduct the determined residual value.
Depending on the provider and product, the payout will vary. Additional benefits such as the replacement value supplement or as-new cover also affect the insurance payout.
With a replacement value supplement, you get more money from the insurance company if your vehicle is written off. The payout amount is shown in what is known as replacement value supplement table.
Some insurance companies provide supplemental as-new cover. Depending on the provider, it may also be called "purchase price guarantee".
With this, you will receive a higher payment when making a claim than with a replacement value supplement. You often receive the full purchase price or replacement value up to the fifth year of the vehicle’s operation.
Note: you can do as you wish with the money from the insurance company. This means you don’t have to buy a new car with it if you don’t want to.
Payouts using replacement value
Depending on the policy, your insurer may also determine your payout based on the vehicle’s replacement value. This can apply to vehicles of a certain age, for example. Your car’s replacement value may be much more than its current value.
The replacement value is the cost of a comparable car plus any additional purchasing costs. These may include any extra costs for buying from a dealership.
This article was first published on 24.11.2018
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