Skip to main content

What happens if my car is a total loss?

This article is for Marshmallow policyholders whose vehicle has been declared a total loss after an accident.

Updated yesterday

If your car has been damaged and cannot be safely or economically repaired, it may be declared a total loss (also known as a "write-off"). This guide explains what that means and what happens next.


What is a total loss?

A vehicle is considered a total loss when:

  • The damage is too severe to repair safely, or

  • The cost of repairs is more than the vehicle's pre-accident value, or

  • It has been stolen and not recovered.

In these cases, you won’t get your car back. Instead, we’ll offer you a settlement payment based on the pre-accident market value of your car.


How is my settlement calculated?

We’ll calculate your vehicle’s market value before the accident, then deduct your:

  • Policy excess (shown in your insurance documents)

  • Outstanding premium (OSP) if you pay monthly

Example:

If your car is valued at £10,000, and:

  • Your excess is £750

  • Your outstanding premium is £1,200

Your payout would be: £10,000 – £750 – £1,200 = £8,050


What documents do I need to send?

To process your settlement, please send:

  • Your bank account details

  • A copy of all pages of your V5 document

  • If your car is on finance: your finance agreement

Once we have these, we’ll complete pre-payment checks (usually takes 3–5 working days).


When will I get my payment?

Once pre-payment checks are complete and all documents are received, we’ll transfer your settlement directly to your bank account. We’ll let you know when the payment is made.


Can I change or cancel my insurance?

  • Buy a new car? Update your policy with the new vehicle.

  • Keeping your old vehicle? If you repair it and it’s roadworthy, send us a valid MOT or engineer’s report.

  • Want to cancel? Contact us. Note: If we pay your claim, you’ll still owe the full annual premium.


Who do I contact?

If you have questions about your settlement, please contact your claims handler directly.

Here are some useful numbers:

Partner

Contact Number

Motor Repair Network

0333 016 9823

S&G

01625 416 805

Winn Solicitors

0191 720 7795

Robertson & Co

01277 367 150

Did this answer your question?