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Insurance Claims Process for Non-Running Vehicles in South Africa - What Owners Should Know

Overview: Why this process matters for non-running vehicles

If your car is non-running after an accident, flood, fire or mechanical failure, the insurance claims process often differs from a standard damage claim. Insurers assess whether a vehicle is repairable, a write-off, or needs salvage handling. Knowing the steps, required documents and timing can reduce delays, preserve value and help you choose whether to repair, claim or sell.

This guide explains the typical claims pathway in South Africa, what insurers look for, and practical choices for owners of private and fleet vehicles around Johannesburg, Cape Town, Durban and beyond. For background about how a specialist buyer handles non-running cars, see our about / how it works page.

When to submit an insurance claim versus selling the vehicle

Deciding whether to claim or to sell a non-running vehicle depends on repair cost, insurer excess, vehicle market value and the operational needs of the owner. Claims can be appropriate for recent damage where repair is economically sensible. Selling may be preferable when repair costs are close to or exceed current market value, or when a vehicle is written-off and you prefer a quicker cash outcome.

Claim if repair cost is substantially lower than market value and you want the vehicle restored.
Consider selling if the vehicle is written-off, non-running for an extended period, or repairs are uncertain and you prefer immediate cash.

For owners of non-running cars who want a straightforward sale path, our Sell Non-Running Car guidance explains the online valuation and collection process in more detail: Sell Non-Running Car.

Quick checklist before contacting your insurer

Photograph the vehicle from multiple angles including close-ups of damage.
Gather logbook or registration documents, ID, and proof of address.
Note the incident time, location and any third-party details (if applicable).
Check your policy for excesses, cover limits and whether salvage retention is permitted.

Owner tip: If your vehicle is not roadworthy, do not attempt to move it without insurer or qualified recovery assistance - unauthorised towing can complicate a claim.

Repair cost vs value retained (illustrative)

Estimated Repair Cost (R)	Typical Impact on Market Value (Estimate)	When to Consider Selling Instead
R5,000 - R20,000	Minor reduction (0-10%)	Usually repairable; claim if policy covers and excess is reasonable
R20,000 - R80,000	Moderate reduction (10-35%)	Compare repair vs market value; selling may be quicker for non-running cars
Over R80,000	Major reduction (35%+)	Often leads to write-off decisions; selling to a specialist is a practical option

Note: figures above are illustrative estimates for the South African market and will vary by make, model and year. Use them only as a planning guide when deciding whether to pursue a claim or a sale.

How the claims process typically works for non-running vehicles

1. Notification: Contact your insurer as soon as practical to lodge a claim. Provide incident details, photos and state that the vehicle is non-running. 2. Assessment: The insurer will assign an assessor or instruct a panel workshop to view the car - they may request recovery to a secure facility for inspection. 3. Decision: After inspection the insurer will determine repairability, estimated costs and whether the vehicle is a total loss (write-off). 4. Settlement: Depending on policy terms, the insurer either authorises repairs, pays a cash settlement, or pays out net of salvage value if you keep the vehicle.

Key SA-specific paperwork and legal points

In South Africa, expect to handle or be assisted with the following documents during a claim:

Vehicle registration certificate (logbook) or proof of ownership.
Police report if required (e.g., theft, malicious damage or third-party incidents).
Insurance claim form, assessor report and repair estimates.
Deregistration forms and transfer documents if the insurer arranges salvage sale.

If your vehicle is under finance, the finance provider must be informed. The insurer will often settle the finance account first and any remaining funds go to the vehicle owner. For vehicles remaining with the owner after settlement, deregistration and transfer steps must be completed properly to avoid future liabilities.

Damage types vs typical offer impact (how insurers and buyers view them)

Damage Type	Typical Effect on Insurer Decision	Impact on Specialist Buyer Valuation
Structural/frame damage	Often leads to write-off if repair costs are high	Significant negative impact; buyers price for salvage parts
Mechanical failure (engine/transmission)	Assessed case-by-case; cost-driven	High repair costs reduce offers; non-running status increases logistics cost
Flood or fire damage	High chance of write-off due to electronic/corrosion risks	Lower offers; specialised salvage buyers may be required
Minor cosmetic/door damage	Usually repaired; claim more likely	Less effect on valuation if repairable

Tips to maximise a claim outcome and alternatives if you sell

Document damage thoroughly-clear photos and written notes speed assessment and limit disputes.
Obtain independent repair estimates to compare with the insurer’s assessor report.
Ask your insurer about salvage retention: keeping the vehicle after settlement affects the payout and your responsibilities for deregistration.
For non-running cars where repair is uneconomic, getting multiple salvage or specialist-buyer quotes helps you understand market options. See our Sell Damaged Cars page for how a specialist purchase works.

What happens after collection or settlement

If your insurer authorises repairs, the vehicle typically goes to an approved workshop and you’ll be updated on timelines. If the vehicle is written-off, you will receive a settlement based on your policy terms; salvage may be sold by the insurer or retained by you, which changes the settlement amount.

When selling to a specialist buyer, typical inclusions are towing from your location (nationwide across SA), paperwork assistance including deregistration, and a clear handover process. For a clear comparison of sale vs claim timelines and logistics, our homepage has a summary of the online process and nationwide service area: Sell Your Damaged Car homepage.

Example scenarios (practical, South Africa-focused)

Scenario A: A 2012 private sedan has a failed gearbox and is non-running. Estimated gearbox repair R45,000. Market value before damage R120,000. After assessor review, insurer may consider repair if policy covers; owner can also compare a specialist sale to avoid repair logistics.

Scenario B: A flood-damaged bakkie has significant electrical and interior damage. Insurers often write these off due to corrosion risks; a specialist salvage buyer will price for parts and export markets, and will manage towing and paperwork.

Insurance Claims Process for Non-Running Vehicles in South Africa - Practical Guide

Claims vs Selling

Key Paperwork

Practical Options

Overview: Why this process matters for non-running vehicles

When to submit an insurance claim versus selling the vehicle

Quick checklist before contacting your insurer

Repair cost vs value retained (illustrative)

How the claims process typically works for non-running vehicles

Key SA-specific paperwork and legal points

Damage types vs typical offer impact (how insurers and buyers view them)

Tips to maximise a claim outcome and alternatives if you sell

What happens after collection or settlement

Example scenarios (practical, South Africa-focused)

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