After an accident, many Alberta drivers are shocked to be told their vehicle is a total loss—even though it still runs, drives, or appears repairable. Being told your car is “written off” can feel final, especially when the insurer presents it as a non-negotiable decision.

In reality, a write-off decision is not always the end of the road. Insurers write off vehicles for financial reasons, not because repairs are impossible. Understanding how and why write-offs happen—and what options you may still have—is critical before you accept a payout or sign anything.

What It Means When a Car Is “Written Off”

When an insurer writes off a vehicle, they are saying that the cost of repairs exceeds a certain threshold compared to the vehicle’s value—not that the vehicle cannot be repaired.

In Alberta, this usually means:

The insurer believes repairs are not economically reasonable
The repair cost approaches or exceeds the vehicle’s actual cash value
The insurer chooses to pay out the vehicle instead of repairing it

This is a financial decision, not a safety determination.

Why Insurers Write Off Repairable Vehicles

Insurers use internal formulas to decide whether to repair or write off a vehicle. These formulas are heavily influenced by cost control.

Common reasons insurers choose a write-off include:

Rising labour and parts costs
Use of OEM parts in repair estimates
Storage, towing, and rental expenses
Administrative convenience

A vehicle can be fully repairable and still be written off if the numbers work better for the insurer.

Actual Cash Value Drives the Decision

Write-off decisions are based on Actual Cash Value (ACV), not replacement cost.

ACV reflects:

Age
Mileage
Condition
Comparable vehicle sales

If the insurer undervalues your vehicle, it becomes easier for them to justify a write-off. Disputes often arise not because repairs are unreasonable—but because the vehicle value is understated.

Can You Dispute a Write-Off Decision?

Yes. A write-off is not automatically final.

You may be able to challenge the decision if:

The repair estimate is inflated or incomplete
The vehicle value is underestimated
Comparable vehicles are misrepresented
Safety-related assumptions are incorrect

Insurers often rely on preferred repair shops or internal estimators. Independent assessments can change the analysis.

What If You Want to Repair the Vehicle Anyway?

In some cases, you may be able to:

Accept the payout
Retain the salvage
Repair the vehicle yourself

This option depends on:

The severity of the damage
Whether the vehicle is branded as salvage
Alberta registry and inspection requirements

Salvage branding can affect resale value, insurability, and future registration, so this decision should not be made lightly.

The Risks of Accepting a Write-Off Too Quickly

Accepting a write-off settlement often requires signing documents that:

Finalize the vehicle valuation
Transfer ownership
Release the insurer from further obligations

Once accepted, it is extremely difficult to revisit:

Undervalued vehicle prices
Missed options to repair
Errors in comparables

Speed benefits the insurer—not necessarily you.

When a Write-Off May Be Unreasonable

A write-off decision may be questionable when:

The vehicle is newer or well-maintained
Damage is largely cosmetic
Repair estimates vary significantly between shops
Comparable vehicles are priced higher than the insurer claims

In these situations, the insurer’s position should be scrutinized.

Why Insurers Prefer Write-Offs

From an insurer’s perspective, write-offs:

Provide cost certainty
Avoid repair disputes
Reduce ongoing rental exposure
Close files faster

That does not mean the decision aligns with your interests.

What You Should Do Before Accepting a Write-Off

Before agreeing to a total loss:

Request the insurer’s valuation report
Review comparable vehicles carefully
Obtain an independent repair estimate
Ask whether salvage retention is an option
Review your policy wording

Do not assume the insurer’s conclusion is the only option.

Why Legal Advice Makes a Difference

Write-off disputes are contract and valuation issues—not just mechanical ones.

A dedicated Alberta insurance lawyer can:

Challenge undervaluation
Assess whether the write-off threshold was applied fairly
Push back on inflated repair assumptions
Protect you from signing away rights prematurely

Insurers often reassess once their numbers are challenged.

The “Home Field” Advantage

Alberta’s vehicle market, repair costs, and insurance practices differ from other provinces. Local realities matter when assessing value and repair feasibility.

At Shiv Ganesh Professional Corporation, we act for policyholders—not insurers. We understand how write-off decisions are made and how to challenge them when they don’t make sense.

Don’t Assume “Written Off” Means No Options

Being told your car is a total loss does not mean you have no say. Many drivers accept write-offs without realizing they could dispute the valuation or explore repair options.

If your vehicle has been written off but you believe it can be repaired—or if the payout feels low—get advice before accepting the insurer’s decision.

Dealing with a vehicle write-off dispute in Alberta?

Contact us today for a free consultation. We’ll review the insurer’s position, explain your options, and help ensure you’re treated fairly before the claim is finalized.