What happens if your car is written off
If anyone is seriously injured or in immediate danger, call Triple Zero (000) now.
Crash Guide is not an emergency service.
Call Triple Zero (000)Short answer
What happens if my car is written off?
A vehicle is written off when repairing it is uneconomic or it is unsafe to repair. Your insurer pays either an agreed value or a market value, depending on your policy, and takes the vehicle. If you owe more on finance than the payout, you are still responsible for the shortfall unless you have gap cover.
Agreed value versus market value
This distinction decides how much you receive, and most people only discover which one they have at the worst moment.
- Agreed value: a figure fixed when you took out or renewed the policy. You know the number in advance.
- Market value: what the insurer assesses the vehicle was worth immediately before the accident, based on comparable sales, condition and kilometres.
If you disagree with the valuation
You can challenge a market valuation, and people do so successfully. Argue with evidence, not frustration.
- Ask for the insurer's valuation report and the comparable vehicles it relied on.
- Find comparable listings — same model, similar kilometres, similar condition, same state.
- Document anything that lifts your vehicle above the comparables: service history, recent tyres or major work, low kilometres, factory options.
- Put it to the insurer in writing as a reasoned counter-position.
- If it is not resolved, AFCA provides free external dispute resolution.
Finance still owing
If you owe more on your loan than the insurance payout, the gap is still your debt. Gap or shortfall cover, if you have it, is designed for exactly this. Check your finance contract and any add-on insurance you bought with the car.
Contact your financier as soon as the write-off is confirmed. The payout usually goes to them first, and they can tell you the exact remaining balance.
What happens to the vehicle
Written-off vehicles are recorded on a written-off vehicle register, and depending on the category and the state, the vehicle may not be re-registered. Retaining salvage is sometimes possible, at a reduced payout — ask if that is something you want.
Remember to remove personal belongings, toll tags, dashcams and any aftermarket accessories before the vehicle is collected.
Common questions
Can I keep my written-off car?
Sometimes, by retaining the salvage for a reduced payout. Whether it can ever be registered again depends on the write-off category and your state's rules. Ask your insurer and check your state transport authority before deciding.
How long does a write-off payout take?
Typically a few weeks after the assessment is finalised, but it depends on the insurer, whether finance is involved and whether the valuation is disputed. Ask for a timeframe, and follow up in writing if it passes.
Sources
Crash Guide checks state rules against primary government and regulator sources. If something below has changed, tell us and we will correct it.
- Car insurance — Moneysmart — ASIC MoneysmartChecked 10 September 2026
- Australian Financial Complaints Authority — AFCAChecked 10 September 2026
- General Insurance Code of Practice — Insurance Council of AustraliaChecked 10 September 2026