Published November 2026.
When your car is written off, your insurer pays its market value: what it was worth just before the accident, not what you paid or what a new one costs. Insurers don’t always get that figure right. In 2025 the Financial Conduct Authority said about 270,000 motorists would share around £200 million in compensation for underpaid write-off claims. Here’s how the valuation works and how to challenge it.
How insurers value a written-off car
Insurers use trade valuation guides, such as Glass’s, CAP, Cazana and Auto Trader, to find the market value of a car of the same make, model, age, mileage and condition. The Financial Ombudsman Service uses the same guides: if they give similar values and the offer is in line with them, it will usually agree with the insurer.
Your payout is that market value, minus your excess. Our car valuation, part of every Gold check, gives you an independent figure to compare.
Deductions to watch for
- Your excess, which is normal.
- The salvage value, if you keep a Cat S or Cat N car to repair yourself.
- Unpaid premiums, if you pay monthly.
- Previous damage or an earlier write-off. The FCA found most insurers deducted a flat 20% if a car had ever been written off, and that automatic deductions for assumed earlier damage were the main cause of underpayments. Ask for any deduction to be explained and evidenced.
How to challenge a low offer
- Don’t accept straight away, and ask how the figure was worked out, including which guides were used.
- Gather evidence: adverts for cars that closely match yours (model, year, mileage and specification), your service history, invoices for recent work, and any independent valuation.
- Make a formal complaint to the insurer with your evidence. It has up to eight weeks to send a final response.
- Go to the Financial Ombudsman Service if you’re still not happy. It’s free, and you have six months from the insurer’s final response. If it finds the offer unfair, it usually raises it to the highest guide value or the value your evidence supports, often with 8% interest.
Extras and modifications don’t always add value, and adverts only count if they closely match your car. The Ombudsman’s view is that it isn’t fair to scrap a car without warning, so tell your insurer if you want to keep it while you dispute the value.
Written off with finance still owing
If the car is on hire purchase or PCP, the lender owns it, so the insurer pays the lender first and you get anything left over. If the payout is less than you owe, you have to pay the difference, unless you have GAP insurance. Our GAP insurance guide explains how it works.
Buying a car that’s been written off
If you’re replacing your car, check the one you’re buying hasn’t been written off before: it affects its value, and your own payout if it’s ever written off again. Our Silver check (£3.99, or 5 for £9.99) shows any write-off record and its category.
Frequently asked questions
How do insurers value a written-off car?
They use trade guides such as Glass’s, CAP, Cazana and Auto Trader to find the market value of a similar car just before the accident, then deduct your excess.
Can I negotiate a write-off payout?
Yes. Ask how the figure was worked out, send evidence of what similar cars sell for, and complain formally if the insurer won’t move.
How long does an insurer have to respond to a complaint?
Up to eight weeks. After that, or after a final response you’re unhappy with, you can go to the Financial Ombudsman Service within six months.
Can I keep my written-off car?
If it’s Cat S or Cat N, usually yes: the insurer pays the market value minus the salvage value. Cat A and Cat B cars can’t be kept for the road.
Sources
- Financial Ombudsman Service: vehicle valuations and write-offs
- Financial Ombudsman Service: how to complain
- FCA: findings of the review of insurers’ vehicle valuations (27 March 2024)
- FCA: over 270,000 motorists to receive compensation (19 September 2025)
- GOV.UK: insurance write-off categories
Check what a car is worth, and whether it has been written off before, with a Gold check: see Silver and Gold check prices.
