What do we mean by a total loss or write off? It arises when the vehicle repair cost is more than the value of the vehicle, taking into account the salvage value of the damaged car.

Let's assume that your vehicle has been severely damaged. It might have arisen from a fire, or damage following a theft. Let's assume that the estimate for the repair is £5,000. If the current value of your vehicle is say £5,500 and the salvage is worth £600 then it makes financial sense for your insurance company to write off the vehicle rather than repair it.

Suppose the salvage valuation is only £400. It's very likely that the insurance company will still write off the vehicle. The repair cost estimate of £5,000 is based on a visual inspection and assessment of the damage. There is every likelihood that there would be more damage discovered once the repair was started. So even though it looks cheaper to repair the vehicle it would be treated as a border line write off.

As soon as the vehicle has been identified as a write-off the insurers will want to move the damaged vehicle into 'free and safe storage'. This is usually at a salvage dealer. The reason is simple. The vehicle repairers have cottoned on that there is a fast buck to be made. They won't get the repair job but they will charge your insurer just for holding your vehicle in their workshop. They will sometimes charge incredible daily rates that might make car clamping fees seem like peanuts! Even the lowest charges are similar to car parking fees in Central London. Insurers pay out millions of pounds each year for car storage charges so they prefer to move your vehicle FAST!.

Because they lost sums of money dealing with certain customers they might even tell you that they are planning to move it in 48 hours rather than asking your permission. What has happened on occasion is that the salvage people move so quickly that the car is being picked up by the salvage truck before you've been told that it is a write off!. Naturally this can be upsetting to some customers.

But thinking about the reason, please be understanding! The insurance company aren't disposing of your vehicle, just moving it to lower costs. You could ask why you should worry about saving money for your insurer? The answer is very straightforward. The more they pay out on claims, the more you pay out on premiums. It is in our best interest to keep their costs down. My advice is - do as they ask. Always agree to have your damaged car moved from a vehicle repairer. If you don't, they can require you to pay the storage charges from the point of your refusal.

Sometimes when dealing with an older car, it can be a write off yet remain safe and legal to drive. It might have a low value and only some minor cosmetic damage. Frequently insurers will allow you to keep the car at your house whilst the next steps in the procedure take place, provided it is not incurring any storage charges.