What Does Write-Off Mean?
A write-off, in the insurance industry, is a vehicle so badly damaged that an insurance company pays out for it and does not renew the owner's policy. This is because the vehicle is no longer insurable after being damaged.
Insuranceopedia Explains Write-Off
Businesses write off losses like unpaid loans or nonperforming assets and turn them into deductions from revenue in their books. In terms of insurance, this term applies to vehicles. While the term can apply to a total loss – a car wrecked beyond repair – this sense only holds true where insurance is concerned. An insurance write-off happens when it is no longer financially possible for an insurance company to cover a vehicle, especially after a loss or damage, because doing so would cause financial risk.