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A Quick guide to insurance terminology


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")