Introduction
When your car gets written off, it can feel stressful and confusing. You may not know what to do next or how to deal with the paperwork, the insurance company, or even the car itself. In Canada, many vehicles get written off yearly due to accidents, flooding, fire damage, or even theft recovery. Once an insurance company decides that fixing the vehicle costs more than it’s worth, they consider it a ‘write-off’ or ‘total loss.
According to Transport Canada, nearly 160,000 vehicles have been reported to have collided, causing damage or write-offs in recent years. With so many write-offs, car owners need to understand the process. Let’s walk through what happens when your car is written off and what steps you need to take.
What Does Written Off Mean?
In Canada, a car is considered ‘written off’ when the cost of repairing the damage exceeds the car’s actual value. Insurance companies call this a total loss. The decision is made by comparing the estimated repair costs to the car’s pre-accident market value, which is known as the Actual Cash Value (ACV). If the repairs cost around 70% to 80% or more of the ACV, the car is declared a write-off. This is not because the car can’t be fixed, but because it doesn’t make financial sense for the insurance provider to pay for repairs.
When your insurer makes this decision, it’s based on professional repair estimates, the severity of the damage, and sometimes even associated costs like towing and temporary rentals. Once the car is labeled a write-off, it is removed from active road use, and the next steps depend on the status your car is assigned and whether you decide to keep it, repair it, or scrap it.
What Happens After Your Insurance Declares a Total Loss?
Once your insurance provider declares your vehicle a total loss, they will offer a payout that matches the car’s Actual Cash Value. This value is calculated by assessing the vehicle’s market price before the damage occurred, accounting for mileage, age, maintenance, and overall condition. If you accept the payout, you must usually sign over the vehicle ownership to the insurance company. After that, they may send the car to an auction, sell it to a salvage yard, or have it dismantled for parts.
However, you do have options. In many cases, you can choose to keep the car. The insurance company will deduct the vehicle’s scrap value from your total payout. But in this case, your car will be assigned a salvage or irreparable title. If you are considering this route, you will need to understand the legal implications of owning a junk vehicle in Ontario.
Also Read: Beginner’s Guide to Understanding Junk Car Titles
Vehicle Branding in Ontario
In Ontario, the Ministry of Transportation (MTO) classifies written-off vehicles into three categories: irreparable, salvage, and rebuilt. If your car is assigned an irreparable brand, it cannot be legally repaired or driven again. It can only be sold for scrap or dismantled for parts. If the car is assigned a salvage title, it means the vehicle can be repaired, but it must go through a structural inspection before it can be driven again. Once the car passes all necessary inspections and safety tests, it can be rebranded as ‘rebuilt.
Vehicle branding is a serious legal designation. If you try to sell a written-off or salvage car without disclosing its status, you can face legal consequences. You must also notify the MTO about any change in ownership or status of the vehicle. It’s also your responsibility to return or transfer the license plates and cancel or update your insurance coverage accordingly.
Why Does Scrapping a Written-Off Vehicle Make Sense?
Scrapping your car after it has been written off is often the most practical and financially beneficial option. If the car is not running and you don’t want to spend money on repairs, scrapping the vehicle can help you recover its residual value quickly. Auto recyclers inspect your car based on its weight, condition, and valuable parts like the engine, battery, catalytic converter, and transmission. These auto parts are either resold or recycled, and the metal is processed for reuse in manufacturing industries.
Scrap car removal is a common solution for car owners who are dealing with written-off vehicles. It’s fast, convenient, and requires no repair investment. By working with a licensed scrap car buyer, you also avoid any legal risks that can come from improper disposal. Recyclers like Greenway Auto Recycling even handle all the paperwork for you, including issuing a receipt, confirming ownership transfer, and safely disposing of all toxic fluids and materials in line with environmental regulations.
How Much Money Can You Get for a Written-Off Car?
The value of a written-off car depends on a few factors. These include the vehicle’s make and model, weight, the presence of valuable parts, and current scrap metal market prices. On average, scrap cars in Ontario can be sold for $300 and $15,000. Larger vehicles like trucks and SUVs can bring in more money due to their higher metal content. Aluminum wheels, copper wiring, and reusable engines can increase the final offer.
Prices also vary based on location. In the GTA, recyclers consider logistics like towing distance and availability of parts when providing a quote. Most professional auto recyclers, including Greenway Auto Recycling, offer free towing services, which saves you extra money and makes the process completely hassle-free.
Also Read: Is It Worth Buying and Rebuilding a Wrecked Car for Personal Use?
What Should You Do Before Scrapping Your Car?
Before handing your car over to a car scrapyard, there are a few important steps to take. First, make sure you remove all personal stuff from the vehicle. Check under the seats, look in the glove compartment, and also see the trunk. Then, take off your license plates and keep them if you are planning to register a new vehicle. It’s also important to cancel your insurance policy or transfer it to your new car to avoid unnecessary charges.
You should also make sure to get a formal receipt or bill of sale from the scrap car buyer. This document is important for your records and can serve as proof that the vehicle has been legally disposed of. If you are dealing with a genuine auto recycler, they will help guide you through the proper procedures and make sure the paperwork is handled correctly.
Wrapping Up
Getting your car written off is never easy. But once you understand your rights, your insurance options, and how to legally get rid of the vehicle, it becomes much more manageable. Whether you keep the vehicle, repair it, or sell it for scrap, you must make the right decision.
Greenway Auto Recycling offers an excellent solution for written-off cars. With free towing, same-day service, and amazing cash offers, we make scrapping your car simple, safe, and profitable.
