Insurance write offs- please explain to a mere car owner

Our car got a bit of a sprinkling of dings form the hail a couple of weeks ago. Which I wouldn't have worried about except the windscreen gt cracked too, which I HAVE to worry about. Anyway, so that's OK I guess. So we were getting the dings assessed to see how much they will cost to get repaired and thought we could just decide after the assessment whether we'll bother. Windscreen will cost $390 to replace. Excess of $500. :shrug: But now the insurance has told my husband that if they assess it as a write off we can't drive it any more. Like not even home. :doh: And if they don't assess it they can't insure it anymore anyway, cos they don't know what state its in. It is a 1994 Camry wagon, which is only worth $2500ish I think, in the car yards. But its a great car. Never broken down. A little on the boring side, but you can't have everything. I thought a "financial write off" and "un-roadworthy" were two different things. :hmm: Is it true we can't drive it home? Or can we just insure it for third party, fire and theft. :shrug:

it wont be unroad worthy if they assess it as a wright off they keep if nd give you the money it took us 4 weks to get the money. :C

they should give you a hire car in teh mean time but it depends on what company u are with. u can jsut keep it and uninsure it that just means if u crash it then you have to bu a new one. ctp is diferent and it will still be covered by that..:2tsup:

Actually Carl the car is unroadworthy as it is, because it has a cracked windscreen.

The following is just an opinion as I see it.

I think you'll find that if they assess it as write off, the car then becomes their property as they'll be paying you for either Market Value or Agreed Value at the time of insuring it. But I'm sure that you'll have an option of buying it back, which will probably be about a 1/3rd or less of whatever they pay you for it.

So if you buy it back, you'll have to pay out of your own pocket to get it fixed and then re-insure it.

If you want to keep it as is, buy a new windscreen, cancel your insurace policy and take out a third party only policy. You may get a refund on the remainder of your policy.
If you don't want to keep it get it assessed and they will write it off and pay you out market value or agreed value depending on your policy. It will be a write off if it's only worth $2500.

In my opinion it's not worth having full comp insurace on cars worth less than $10000.

This issue was discussed on Jon Faine's program on 774 a week or so ago.

You might be able to check it out on the ABC website but as I remember it was pretty much as DJ said. They will pay out but you should be able to buy it back,

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Originally Posted by DJ's Timber

Actually Carl the car is unroadworthy as it is, because it has a cracked windscreen.Yes! That bit I'm not quibbling about. :shrug:

The following is just an opinion as I see it.

I think you'll find that if they assess it as write off, the car then becomes their property as they'll be paying you for either Market Value or Agreed Value at the time of insuring it. But I'm sure that you'll have an option of buying it back, which will probably be about a 1/3rd or less of whatever they pay you for it.:hmm: So we could buy it back and make a profit? :dunce:

So if you buy it back, you'll have to pay out of your own pocket to get it fixed and then re-insure it.

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Originally Posted by nihilism

In my opinion it's not worth having full comp insurace on cars worth less than $10000.

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It wasn't worth under $10.000 when we first got it. I guess the value has crept down on us while we weren't looking. :rolleyes:

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Originally Posted by Chesand

This issue was discussed on Jon Faine's program on 774 a week or so ago.

You might be able to check it out on the ABC website but as I remember it was pretty much as DJ said. They will pay out but you should be able to buy it back,

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:think: Might try and see if it is still available to listen to in the web. :cool: Thanks.

AFAIK there's two kinds of write-off. One, statutory I think, is where the vehicle is damaged and unrepairable for safety reasons. This cannot be reregistered and may go to a wrecker for parts.

The other is where the repair costs exceed the insured value of the vehicle. If market value, the insurer will use an av. value for a vehicle of that age. You can challenge this by showing that it was actually in better nick than the av., esp if it had lower k's. Find 2nd hand ads showing higher values for vehicles that have travelled a similar distance.

Good luck.

You could buy it back, you'll need to do some homework and see which way it work out the cheapest.

If assessed as a write off and market value was $2500 less buy back price of say $800 plus cost of new w/screen $390 plus any other hidden costs, you may end up with car plus approx $1300 of which you'll still have to pay third party insurance. Just be sure to do you homework well though, as part of been written off, the rego may be cancelled as well, which means you'll be up for a roadworthy and new rego fees :o

Or do as nihilism said.<!-- google_ad_section_end -->

Yes. If it's a 'financial' write-off and you've accepted the pay-out, the insurer owns the car and in many cases will also claim the refund of the balance of the rego/TAC costs.

On reflection, I smell a rat about the insurer's statement that you couldn't drive it home if assessed as a write-off.

I'm not in the business so may be talking through my hat.

If the windscreen was shattered, it may be unsafe to drive as the thing is part of the structure of the car. It's bonded in place.

But if there's just some star cracks .... ?

My advice TL would be to take it to an independent crash repairer and get their view.

At a guess, your best option might be just to replace the screen, live with the dings and drive the thing into the ground. With care, those models are good for 3-400,000 km.

In partic, make sure the CV joints are looked at from time to time and that their rubber boots are in good nick.

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Originally Posted by rsser

Yes. If it's a 'financial' write-off and you've accepted the pay-out, the insurer owns the car and in many cases will also claim the refund of the balance of the rego/TAC costs.

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My daughter had a complete write-off a couple of years ago.

We went to storage area, took off the plates and got a refund of balance of Rego from VicRoads.

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Originally Posted by Chesand

My daughter had a complete write-off a couple of years ago.

We went to storage area, took off the plates and got a refund of balance of Rego from VicRoads.

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:think: I think the rego is due next month so there wouldn't be much in that. :doh::D

More inwestigating is in order I think. :pi: Maybe I should read :the book"

Nihilism is correct. If you value your car above what they will pay out cancel and fit a windscreen. They will pay you minimum, If your car is worth more to you than they pay then you are wasting your money with full comp. get third party +. Any car over say 8 years old its debatable if insurance is worth it. My car is 3Y It got a ding going to the wood show. Guy slid back and hit the front with a tow ball. Quote for a paint scuff $750. Robbery yes but how do you fix it. If the guy that did it reads this, they painted it 3 times before they got it correct. First time they painted a spider in the finish.

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Originally Posted by rrobor

First time they painted a spider in the finish.

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:rofl:

we wer not able to buy back the ute when it got writen off it had to go to public auction. we had to go to auction to buy it.

it was auctioned be for we got payout so we couldnt buy it.:doh:

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Originally Posted by weisyboy

we wer not able to buy back the ute when it got writen off it had to go to public auction. we had to go to auction to buy it.

it was auctioned be for we got payout so we couldnt buy it.:doh:

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So thwy made a profit on that one. (Actually, just reading "the book" and it said that if the car was sold for more than the write off value you would be paid the difference too. :shrug: ) (I think. )

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Originally Posted by tea lady

So they made a profit on that one. (Actually, just reading "the book" and it said that if the car was sold for more than the write off value you would be paid the difference too. :shrug: ) (I think. )

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That depends on the fine print in the policy document. Worth reading before taking out insurance and definitely before making a claim.

Normally if the current value of the car is less then or equal to the total damage (ignoring any excess) than they can write it off and payout the assessed value less the excess of the claim. Any amount they recover is theirs, including the unexpired rego.

If you can buy it back it will need a RWC before it can be transferred back to you and transfer duty will also be incurred. Usually not worth it on an old car.

Peter.

If the insurance company declares the vehicle a write off - it is unable to be driven.

There is a WOVR (Written Off Vehicle Register) at Vicroads & all state rego depts.

The vehicle is either a Statutory writeoff or a repairable writeoff.

A Stat writeoff cannot be reregistered at all but can be wrecked for parts - the part that has the VIN number (body shell or chasis) cannot be used again.

A repairable writeoff has to undergo a VIV inspection (Vehicle Identification Verification) - this was originally introduced to prevent stolen cars from being "rebadged" and to check structural repairs were of a good quality, but it is now out of control and the piece of paper when signed says "ALL damage has been repaired, so that means hail damage must be repaired. BTW the VIV inspection requires photos of the damage, progress photos of the repairs, receipts for all parts & materials (receipt for secondhand parts must include VIN from car parts came off) and costs about $480 dollars and another $85 if a recheck is required.

If the car is on the WOVR then it cannot be driven even with a permit, it must be towed ort trailered to be repaired or moved.

Hope that helps - i have bought all my kids cars from Fowles auctions as repairable writeoffs and gone through the process but it is getting more difficult all the time.

Cheers

This is not in place of a roadworthy certificate it will need one of them as well.

Your choice is
- don't tell the insurance co at all and put a new windscreen in it and then just have third-party insurance only.
- tell the insurance co and get your payout and buy a new car.

Cheers

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Originally Posted by Calm

Your choice is
- don't tell the insurance co at all and put a new windscreen in it and then just have third-party insurance only.
- tell the insurance co and get your payout and buy a new car.

Cheers

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:C Thanks Calm. I knew someone would know what's what. So if we take it to the assessor does it mean we then can't decide not to repair it or make a claim? (Will get the windscreen repaired of course. :) )

And if they write it off, if you buy it back you can't just repair the windscreen, you have to repair it all again? :doh: And that includes not just the dings, but everything else and is then has to get road-worthied too? :C This seems such a waste. :hmm: Its only cosmetic damage. :doh:

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Originally Posted by tea lady

:C Thanks Calm. I knew someone would know what's what. So if we take it to the assessor does it mean we then can't decide not to repair it or make a claim? (Will get the windscreen repaired of course. :) )

And if they write it off, if you buy it back you can't just repair the windscreen, you have to repair it all again? :doh: And that includes not just the dings, but everything else and is then has to get road-worthied too? :C This seems such a waste. :hmm: Its only cosmetic damage. :doh:

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I think you could take it to the asessor and if he is going to include it on the WOVR you could say "no i dont think i will make a claim" - take it home and then just fix the windscreen. - you would want to check what insurance they will accept in future but i reckon "bomb insurance" (other car only + fire & theft) should be ok.

Cheers

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Originally Posted by Calm

I think you could take it to the asessor and if he is going to include it on the WOVR you could say "no i dont think i will make a claim" - take it home and then just fix the windscreen. - you would want to check what insurance they will accept in future but i reckon "bomb insurance" (other car only + fire & theft) should be ok.

Cheers

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Thanks! Will ring 'em in the morning. :cool:

I've always been under the impression to have the car looked at by an insurance assessor you have to put in a claim first. I'm not sure if you can cancel that claim or not at that stage.

I've never held full comprehensive insurance on a car but have been involved in lodging several claims for company vehicles. (The latest of which i dropped off for repair today). The process has always been the same, fill out claim form, get quote or quotes, insurance assessor looks at car to verify the quote is accurate and resonable and gives the go ahead to the repairer.

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Originally Posted by nihilism

I've always been under the impression to have the car looked at by an insurance assessor you have to put in a claim first. I'm not sure if you can cancel that claim or not at that stage.

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Not necessarily a claim but notification will start the procedure with some companies. But once notified, although you can proceed not to claim, you cannot cancel the process that has started and an assessor may inspect the vehicle and make his decision.

BTW failure to notify the insurance company will invalidate further comprehensive insurance on that vehicle. ( Don't you just love the fine print in policies.:C )


Peter.

Well, we've decided to just have third party fire and theft on the cars. The cost of comprehensive was starting to be not worth it compared to the value of the cars.:rolleyes::)

Interesting thread. Are there any good but somewhat dented bargains going after the hail storms?

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Originally Posted by woodnut

Interesting thread. Are there any good but somewhat dented bargains going after the hail storms?

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Heaps! All the new car yards in Upper Ferntree Gully have had sales on.:cool:

We had the same sort of hail in perth last monday so the same thing is going on over here too.