5 cases where insurance companies write off cars with just a scratch

Insurance companies are obliged to compensate a motorist in the event of an accident or car damage.

According to the Insurance Regulatory Authority (IRA), cars that are damaged or involved in accidents are either written off or repaired depending on the cost.

However, some vehicle owners lose their car even after a minor scratch during an accident.

write off car

The wreckage of a BMW involved in an accident on Sunday December 18, 2022



Depreciation is a term used to describe a car that is deemed damaged or unroadworthy by an insurance company.

Most cars in this country are written off after accidents or serious damage. The compensation process applies mainly to motorists with comprehensive policies.

The insurance companies give a rating equal to the amount paid by the vehicle owner. The policy dictates the compensation procedure when insurance companies write off a car.

How insurance companies write off cars

repair too expensive

Vehicles in this category can be repaired after damage or accident. However, the repair costs exceed the value of the car.

Insurance companies write off a car and reimburse it according to their policies to avoid additional costs.

This is what happens when a scratch forces the insurance company to take the car back for a makeover when it comes to high end vehicles like rare Mercedes Benz and Audi.

scrap metal

Under this category, the vehicle is totally damaged or too old. In addition, the spare parts of vehicles in this category cannot even be sold, which forces an insurer to write them off.

READ :  The President of North Texas Health Insurance who became a Hill Country Chocolatier

In some countries, badly damaged vehicles are classified as legal totals.

Even if a scratch is minor but the car is too old, insurance companies have to write it off. To avoid such scenarios, most insurance companies only allow cars of a certain age to get comprehensive insurance.


In this category, an insurance company declares a car old or too damaged. However, some parts can be removed by a mechanic and sold as spares.

In this case, insurance companies write off a car because it cannot be repaired and sell it as a used vehicle. The owner will be compensated according to the existing policy and agreement with the insurer.

In order to avoid clashes with policyholders who suffer small scratches and end up receiving large compensations, insurers ban old cars from taking out comprehensive insurance.

Structurally damaged

Some insurance companies are forced to write off a car if it has structural damage.

Structurally damaged cars can be salvaged and even resold as used cars as the extent of the damage is not serious.

But because the car has lost its shape, insurance companies write it off and compensate the owner, after which the company can cover the cost of repairing the car before it is resold.

Long inspection process

An audited write-off is a vehicle that used to be a repairable write-off but has since been successfully repaired and re-registered.

However, some insurance companies choose to write off a car if the inspection process by the National Transport and Safety Authority (NTSA) exceeds the agreed time limit.

For a write-off procedure to be successful, the insurer must return the logbook to the government under the provisions of the CAP 403 Traffic Act.

READ :  The 10 largest auto insurance companies in the USA 2023

“If a vehicle is written off by an insurer, the insurer shall immediately return the registration book and nameplates issued pursuant to this law or the regulations to the registrar for erasure,” it says in part in Article 6(9) of the law.

Traffic cops stop motorists at a checkpoint.  On Wednesday, May 13, 2020, the NTSA issued a warning to motorists.

Traffic cops stop motorists at a checkpoint.