Insurance termsPublished 2026-04-18Updated 2026-04-18

What write-off, salvage, and market value mean in insurance

These terms sound intimidating, but they become easier once you see how they relate to value, damage, and claim outcomes.

A plain-language explainer for three terms that commonly come up after serious damage or difficult claim conversations.

Why these terms matter together

These words often appear in the same conversation because they all relate to the condition and value of a vehicle after serious damage. They help explain how the insurer and customer think about whether repair still makes sense and what the vehicle is worth in practical terms.

How the concepts differ

Write-off usually relates to the extent of loss or damage, salvage relates to residual value after that loss, and market value refers to the broader value context around the vehicle itself. The exact operational treatment depends on the case and policy wording.

What to ask when these terms come up

If these words appear in your case, ask how the insurer is using them in that specific context, what valuation basis is being applied, and how that affects the options in front of you.

Need help choosing the right cover?

If the insurance language is clear now but the decision still feels hard, we can help you compare the practical options on WhatsApp.

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