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A car is one of the most common assets that are owned by an individual. With regular needs for traveling across places, a car has evolved to become one of the foremost importance and is no longer a luxury, but is a necessity. Thus, a lot of people not just invest highly in their vehicles, but will also make sure it is insured in the right way.

Car insurance will help its user during the hours of need like that of an accident. By paying small amounts regularly, car insurance will ensure to cover up big losses in the future. There are many types of coverage like liability, bodily injury, collision insurance, and property damage liability. By taking insurance, its claim will help in covering accidents when they happen.

But despite its benefits, there are situations when an insurance company might not cover up for a car, but instead, deem it written off. A write-off is a state of the car in which the insurance company has regarded the vehicle to be a total loss. It is more profitable to recycle the car than trying to repair it. These write-offs are based on the criteria presented by the insurance company and a car insurance company has its assessment conditions and criteria.

In general, there are two types of car write-off. They are:

Repairable write-off:

A repairable car write-off is a condition in which the car is deemed to be better written-off as the cost to repair it might be more than the market value of the car is sold. It is not always recommended to proceed with repairing the car, as it might not always be as profitable as expected, but in certain exceptional cases, a repairable write-off might fetch in some profit. Some certain states and territories allow repairable write-offs to be repaired. But the restoration must be up to a particular standard. And after assessing it, the written-off car can be sold second-hand or re-registered.

Statutory write-off:

A statutory write-off is indeed the final write-off regarding that particular car as only the spare parts of the car can be put to proper use. The main reason a car gets written off as a statutory write-off is because it is not safe to repair it nor use it again.

The reason for writing off a car statutory might either be due to an extensive damage situation that might have impacted the internal components of the car or might as well be due to certain structural damage. Structural damage is usually when there is a bend in the external body of the car.

For better determination of the write-off, it is divided into three parts. They are:

• Incident kind
• Location of damage
• Acuteness of severity

The status of written off in a car is gathered by the National Exchange of Vehicle and Driver Information System (NEVDIS) and not entirely by PPSR.