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The 60-70% Rule
South African insurers generally write a vehicle off when the estimated repair cost exceeds roughly 60-70% of its pre-accident value. The exact threshold varies by insurer and is sometimes set higher on older cars, where parts and labour quickly outrun a modest value.
The arithmetic is simple once you know the value. A R400,000 car facing R280,000 of damage is at the 70% mark and will usually be written off, because repairing it is uneconomic next to settling and disposing of the wreck as salvage.
Write-Off Codes 1 to 4
It helps to be precise about the codes, because they are NaTIS life-cycle statuses, not a damage-severity scale. Code 1 simply means a new vehicle and Code 2 an ordinary used vehicle with previous owners — neither is a write-off. A vehicle declared unfit for use after an incident and rebuilt becomes a Code 3 (built-up): it carries restricted re-registration and a permanent coded status. One damaged beyond safe repair is a Code 4 (permanently demolished), which can never be re-registered for road use. Insurers also use a Code 3A category for a vehicle fit only as a spare-parts donor.
The code is recorded against the vehicle's VIN and follows it for life. That permanent record is why a written-off car, even a well-repaired one, is worth less and harder to insure than its history-clean equivalent.
Excess and What You Receive
On a write-off you are paid the pre-accident value on your schedule's value basis — retail, market, trade or agreed — and that basis can change the figure by tens of thousands of rand. The excess still applies: it is deducted from the settlement, so a write-off does not escape the excess.
If the car is financed, the bank is settled first from the payout, and only any surplus comes to you. Where the settlement is less than the finance balance, a shortfall remains — which is exactly what credit shortfall (GAP) cover exists to close.
Salvage and Buying Back Your Car
Once an insurer settles a write-off, the wreck becomes its salvage to dispose of. In many cases you can buy your own vehicle back at salvage value after settlement if you want to repair it privately, though it keeps its write-off code permanently.
Buy-back is most common with sentimental, classic or specialty vehicles where the owner has a reason to keep that specific car. For an ordinary write-off it is usually simpler to take the settlement and replace the vehicle.
Can a Written-Off Car Be Fixed and Driven?
It depends on the code. A Code 3 vehicle can be professionally repaired and, subject to the prescribed roadworthy and registration process, returned to the road — but it remains a coded write-off, harder to insure and lower in resale. A Code 4 cannot be re-registered for road use at all and is destined for scrap.
So 'can you fix it' and 'can you legally drive it' are two different questions. Repair may be physically possible, but the code, the re-registration rules, and an insurer's willingness to cover the result all decide whether it is worth doing.
Buying a Used Car That Was Written Off
A vehicle history check will reveal a write-off code, which is the single most important search to run before buying any used car. A Code 3 bought cheaply can be a reasonable buy with eyes open, but expect difficulty insuring it and a weaker resale when you sell.
A Code 4 should never be bought for road use, because it cannot be legally re-registered. If a deal looks too good and the history shows a write-off, the code is usually the reason — and the reason to walk away or negotiate hard.
Disputing a Write-Off Decision
If you believe the car could be repaired economically, you can ask for a second assessment or escalate to the National Financial Ombud. The cost of an independent assessment is generally yours unless the dispute is upheld, so weigh the likely gain before commissioning one.
Disputes are most worth pursuing where the value basis or the repair estimate looks wrong, since both feed the 60-70% calculation. A defensible independent valuation is the strongest evidence you can bring to that conversation.