When an item or property is so badly damaged that it cannot be repaired, or it is unsafe or uneconomical to repair it, it is then considered a total loss/write-off.
Written-off motor vehicles are motor vehicles where the insurer has decided not to repair the vehicle.
These motor vehicles are classified into one of a number of status codes, ranging from Code 2
(where the motor vehicle is uneconomical to repair under the policy, but can be safely repaired) to
Code 3 (where it is stolen and recovered), to Code 4 (where it is "permanently demolished").
(See the definition of "Uneconomical to repair")