How much damage need to be done before an insurer writes a car off?

Hoju on 19/05/2013 - 20:03

Hi guys,
I did something pretty stupid this weekend. With the bikes on the back of the car, I was so worried about what I might hit with them when I was reversing, that I completely forgot my driver's side. Broke a glass parcel shelf window, scraped the rear door and almost took the front door off the hinge, all thanks to a wall mounted AC unit that I wasn't focussing on.

I was just wondering if anyone has an idea of when my insurer will just decide to write the car off. I really don't want them to, we love the car and put a lot into a perfect service history and some fairly costly ECU repairs. Our excess is only $500, and the market value is $8500.

I've read that cars are 'written off' quite easily these days, and really hope that won't happen, or that we are at least given a choice.

Any ideas?
Thanks!

Automotive

Comments

  • Jam0864 on 19/05/2013 - 20:12
    +7

    Basically if it cost more to fix than to replace.

    • nikey2k27 on 21/05/2013 - 18:11

      it cost 8500 they say it 8000 after your excess so they will not writes it off.

  • robotdad on 19/05/2013 - 20:32
    +1

    I recon that is not enough damage. The insurance co. assessor will work it out with the repairer. I had a damaged roof, two doors, two bumpers, boot lid, mirror, rear windscreen in a car of similar value without it being written off -it was close but not close enough (maybe out by $1000?).

    • Hoju on 19/05/2013 - 20:36

      Awesome, thanks for that, great to have the comparison. I think I'll need a whole new door, but the rest is pretty superficial.
      I was wondering how much effort they put into cars under $10k, as these days with the costs of panel beating it seems like it'd be hard to get it done affordably.

  • mskeggs on 19/05/2013 - 20:37
    -1

    If you can supply quotes less than $8000 to repair, they won't write it off.

    • Hoju on 19/05/2013 - 20:42

      Is that right? I thought it would be more complicated, because they can write it off and then sell it as a repairable write off, which might yield them a few grand.

      • mskeggs on 19/05/2013 - 20:51
        +1

        True, but I think there is a grey area where they will listen to you. If you want a repair and can get it done for under insured value I think they will pay for it.
        What they negotiate as payment with your smash repairer is a different story.
        I have never had quotes hit right on the exact value, but have been close where the insurance rep was asking me whether I wanted it repaired or a write off.

        • Hoju on 19/05/2013 - 21:01

          Oh great, thanks for that. Good to know they might give me an option.

    • glados on 21/05/2013 - 18:56
      +1

      not true. Ex salvage auction worker here.

      If the car cost say $4k to fix and it is worth say $6k at auction, then they will write it off. Because if they pay out the claimant then they are $2k out of pocket, if they fix it, they're $4k out of pocket.

      See how it works?

      cost to repair is one thing, but how much it would make at auction is another. They're more inclined to write off cars as then any issues on repairs wont come back to haunt them.

  • sraymond on 19/05/2013 - 21:03

    I thought they usually give you two options when they decide to write a car off. You can take the cheque for $8000 or a smaller cheque and keep the car. Some have changed this now and will only promise to advise you of the day the car goes to auction.

  • m0nkeycheese on 19/05/2013 - 21:12
    +1

    if it gets written off you can always buy it back off them cheap

  • Hoju on 19/05/2013 - 21:14

    Cool, not a bad option if they'll give it to me. I'm happy to shop around at scrappies for a new door and get a 'good enough' paint job.
    Let's see what happens!

  • YaBigGoose on 19/05/2013 - 22:07
    +2

    That sounds relatively like bugger all damage, to write off you'd pretty much need to f**k the chassis.

  • PB123 on 19/05/2013 - 23:47
    -1

    All written off cars in NSW are now statutory write offs (for cars less than 15 yes old). This means the car can never be reregistered.

    If cost of repair plus salvage figure is less than the agreed or market value, then the car would normally be repaired.
    Salvage figures are much lower for statutory write offs than repairable (I think all other states still have repairable write offs)

    • MATTDAMON on 20/05/2013 - 08:20
      -1

      This is incorrect, they can be rerego'ed its just alot more paperwork and redtape.

      They did it to stop the habibs rebirthing cars with patch up jobs and selling them.

    • Almost Banned on 20/05/2013 - 11:47

      Might be worth noting that any potential future buyer doing a search on your car through the security register will discover that it has previously been written-off.
      That will be a dealbreaker for many/most.

    • Hoju on 20/05/2013 - 12:52

      Did that change?

      1 Feb 2013: All vehicles that have been written-off after 31 January 2011 and that have been successfully repaired and re-registered, will have indicated on their Certificate of Registration that the vehicle has been notified to the Written-off Vehicle Register.

      http://www.rta.nsw.gov.au/registration/written_off_vehicles/…

  • robotdad on 20/05/2013 - 07:38

    Does your insurance policy shed any light on what is covered? New replacement of parts rather than reconditioned? Agreed value rather than insured value?

    • Hoju on 20/05/2013 - 12:53

      It just says 'accidental damage' is covered, so not very useful. Also says reconditioned parts will be used where possible, which is fine with me, as long as the baby still goes!
      It's actually a pretty vague PDS, which is kind of annoying as it can open up doors to not honouring a claim

      • robotdad on 20/05/2013 - 21:47
        +1

        The fact that reconditioned parts can be used reduces the total cost of repairs, which also reduces the chance of a write-off.

        Beware of any prior damage which will be considered to be a separate claim (with its own excess) should it need to be fixed.

  • Romka on 20/05/2013 - 09:33
    +1

    The general rule of thumb is if there is more than 75% of the total insured price in damages, then your car will get written off. The car will also get written off if there is structural damage to the k-frame and it would be dangerous to repair it - ie. car would not drive straight if repaired.

    • glados on 21/05/2013 - 19:02

      not how it works. its not about 'if it would drive straight'

      there's different criteria.

  • diddy50 on 20/05/2013 - 11:16
    +1

    Just a warning for ozB folks that cheaper insurers will not insure you if you hit a family member car, your house, or someone living at your place. Word of warning.

    It was budget direct, we left them and went to aami instead.

    • Hoju on 20/05/2013 - 12:58

      Interesting. I'm with Progressive and based on the described incident they didn't have any problems with my incident / stupidity.
      We do have to take it about 20km to their preferred repairer though :(

  • chiuy on 20/05/2013 - 14:20

    If you REALLY LOVE that car and it's written off, you can go to the auction and try buy the car back.
    Of course you'll then have to pay to get it fixed up and stuff. And its a hassle to get it re-registered. And the fact it's been written-off will be on record for the life of the car.

  • zombie hunter on 20/05/2013 - 16:23

    I suspect putting one in the drink (river, flooded carparks etc) will be a right off….

    • glados on 22/05/2013 - 01:12

      contact with salt water is by far the easiest way to stat write off a car.

  • lostn on 21/05/2013 - 14:05

    I've heard they will write off the car if its repair costs are 70% of the insured value. If you go for a higher agreed value than market value, then it will be harder to get a write off. But in your case, you don't want it written off. I would advise a high agreed value in future.

    Personally, I'd rather a written off car than one that's been in a major accident and is being repaired. The structural integrity can't be the same as new, and its resale value will drop.

  • Bagath on 21/05/2013 - 16:16

    Hi,

    It depends on which state the car is registered. Different states have different regulations around write-off vehicles.
    In NSW since Jan 2011, stricter write off rules are being applied.
    If the impact has damaged the basic structure like chassis, then it will be a write-off.
    Please refer to (NSW) http://www.rta.nsw.gov.au/registration/written_off_vehicles/…

  • No ONE on 21/05/2013 - 20:58

    A couple weeks ago, my brother's car was written off by AAMI. The car could have cost $3000 to repair but AMMI write it off and paid $4,000. The agreed value was $6000. If we knew the agreed value was important thing I guess we would put higher agreed value and made it hard for insurer to write if off.

    I recommend people should put higher agreed value on their car if they don't want their car to be written off, just in case.

    • Hoju on 22/05/2013 - 14:03

      How come they paid out $4000 when the agreed value was $6000?
      Did he have a $2000 excess? Does the excess even come off the payout if it is written off?

      Now I'm worried!

      • No ONE on 22/05/2013 - 21:24

        Insurance policy deducted (comprehensive) on monthly basis

  • cloudy on 23/05/2013 - 12:35
    +1

    our insurance compnay wrote our perfectly functional 9 yr old holden astra off and sent it to the wreakers, after some hail damage and a scratch on the bumper.

    So i guess they dont always go to thje auction

  • Hoju on 25/06/2013 - 08:38

    Well just reporting back, the car was repaired and not written off. Phew.

    Damage required a whole new driver door, sand/spray rear door and rear panel, plus new rear window.
    I got a sneak peak at their invoice to the insurer and it said $2600 so I guess they saved a lot by using a second hand door.

    I'd recommend progressive, the whole process was really straightforward even though I only signed up for the policy 4 weeks before the claim.

  • Kelalako on 03/08/2013 - 00:57

    My integra was insured for only 4k. I bumped into a utes tow bar, which destroyed my bumper, radiator, deformed my hood, messed up my power steering, who else knows? Nobody wanted to repair it so it got written off within a heartbeat, couldnt even say goodbye to the baby and scrap all my stereo and crap because its property of your insurer the second you get the claim.

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