Free tool

Car write-off payout & shortfall calculator

If your car is written off or stolen, will the payout settle your finance? Estimate your payout after excess and check for a shortfall.

Written by Lerato Molefe Personal Insurance Writer Reviewed by Nomsa Dlamini RE5 qualified · 12 years in short-term insurance Updated 28 July 2026 Our editorial standards →

This is an educational estimate — not a quote or a settlement figure. Your actual payout depends on your policy's valuation basis (market vs retail value), your excess and your finance agreement. Always confirm with your insurer and finance provider.

Worried about a shortfall? Compare car insurance — including shortfall cover — from South Africa's top insurers.

Compare car insurance

Why a shortfall happens

A new car can lose a large share of its value in the first few years, while your finance balance drops more slowly — especially with a small deposit, a long term or a balloon payment. If the car is written off or stolen, the insurer pays its market value (less excess), and that money settles the finance first. If the payout is less than you owe, the gap is a credit shortfall — money you still owe on a car you no longer have.

How to protect yourself

Shortfall (credit shortfall) cover pays the gap between your payout and your settlement balance.
Consider agreed-value cover so the payout basis is fixed up front.
A bigger deposit, shorter term and no balloon reduce the shortfall risk.

Related tools & guides

Frequently asked questions

How is a car insurance write-off payout calculated in South Africa?

If your car is written off, most insurers pay its insured value — usually the market or retail value at the time of the claim, depending on your policy — less your excess. If the car is financed, that payout goes to settle the outstanding finance first. If the payout is less than what you owe, you are left with a shortfall unless you have shortfall (credit shortfall) cover.

What is a shortfall on a written-off car?

A shortfall is the gap between your insurance payout and the amount you still owe the bank on your car finance. Because a car depreciates faster than the finance reduces, an insurance payout on a newer financed car often does not cover the settlement balance — leaving you owing money on a car you no longer have.

How do I avoid a car finance shortfall?

Shortfall or credit shortfall cover pays the difference between your insurance payout and your outstanding finance if the car is written off or stolen. A larger deposit, a shorter finance term and avoiding balloon payments also reduce the risk of a shortfall.