Losing Rego and Green Slip to insurance company common?

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  bluechan on 11/09/2013 - 17:12

  It's probably too late. But your Pop shouldn't call his insurance company but the at fault's driver's insurance company.

  The moment you call your insurance company and involve them they will take that as a claim. Even though it wasn't his fault it will increase his premiums.

  I just recently found this little bit of info out myself. (I was hit by another vehicle who didn't do a head check.)

  If you don't involve you own insurance company it won't be a claim against your policy. This was what I was told by my current insurance provider.

  I think it's standard to lose the rego and the remaining premium if the car is written off. I suppose in theory you can recover these costs by going after the at fault driver. But I'm certainly no lawyer so don't take that as legal advice.

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  Steptoe on 11/09/2013 - 17:36

  NRMA used to be the only ones doing this. They factor in that Rego costs make up some of the cars value.

  Did he get a fair market value for the Total Loss? Did he keep the Salvage to sell on?

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  _Bruce_ on 11/09/2013 - 17:56

  This happened to my parents with RACV (I think) in Victoria. Thought it was only rego, as we don't do this 'green slip' thing.

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  tko6070 on 11/09/2013 - 18:09

  If your insurance company is covering the damages ie paying your market value or agreed value they are effectively buying your damaged vehicle, and if they pay you out your policy it is considered a total loss, your car, premium in exchange for the insured sum. Rego and ctp are considered part of the vehicle just like when you sell or buy a car. Hot tip; Insure you vehicle under a agreed value that actually covers the replacement cost of the vehicle included associated costs such as the ctp reg etc.

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  cuteduck on 11/09/2013 - 20:47

  I am sure that you canNOT get the money back as the CTP and rego are attached to the car

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  akyeeeahdude on 11/09/2013 - 21:07

  Not dodgy but standard practice for insurance companies.

  Remember even though not at fault, if you log the claim through them, they will most often pay it out first then recover the money from the at fsult party. What is the at fault party doesn't have insurance and can't afford it? Then they have to enforce the debt recovery and will probably get paid a measely $5 per week…
  Or even better, if they are on welfare, the money can't be recovered legally.

  You get the picture…

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  backpaqer on 12/09/2013 - 08:31

  Write off is usually when the cost of repairing the vehicle exceeds 2/3rds of the market value of the vehicle. You can negotiate with the insurance co about the market value - some people who live in housing commission accommodation regularly see their car value double after a trip to the petrol station to fill up! (Maybe he should have siphoned out the petrol too!!)

  Getting your insurance co involved has its pros and cons and it's good to be aware of what these are.
  Pros:
  1. You have paid good money to retain the best gorillas for beating cash out of the other party
  2. These gorillas take the emotion out of the other party being hard to get hold of, dragging things out etc.
  3. You get a cash resolution to your transport issues taken care of quickly
  4. You get to tell the other party to talk to the hand - or your insurance provider, they choose.

  Cons:
  1. Repair centres charge top dollar to insurance cos…what could actually be repaired becomes a write-off because it is uneconomical. Repairers usually have to provide a warranty on their repairs to the insurer etc… shop around and discuss options with various repairers before you let them know who your insurer is.
  2. You lose control over the negotiations, you can't cancel the rego/ctp to get your money back…though you could possibly get the tank of gas, air-fresheners, seat bead covers and fluffy dice back before you wave goodbye to your trusty wagon.

  Sometimes it pays to keep the car and pay the salvage and then sell the car to a wrecker (or even repair it) - though once it has been written off, it goes on a register and you need to get a roadworthy and pay for fresh rego/ctp and possibly even an engineer certificate for a technical write-off (chassis damage).

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  wayacos on 12/09/2013 - 08:55

  I would be checking that this is in fact legal.
  How does the insurance company get a refund in your Grandfathers name and then deposit it into their account,if you try to do that you will be charged with fraud.
  The Roads and maritime services will only refund to the registered owner.

  • 

    Euphemistic on 12/09/2013 - 15:41

    +1

    As stated above, the insurance company is in effect buying your car for the insured amount. Once they pay you out of their policy they have purchased the car, same as if someone else was to buy it - they are the legal owner and entitled to do with it as they please. Normally the insurance company would de register, then auction off the wreck for parts but the is nothing really stopping them from keeping it registered, fixing it and selling it too (other than the fact it's not economical to do so).

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  wayacos on 13/09/2013 - 08:04

  -1

  Another good reason not to have insurance.

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    backpaqer on 14/09/2013 - 10:14

    You might want to rethink that statement.
    I ride a bicycle and a driver turned in front of me and I t-boned his car at 40kmh and wrote it off. It was only $1000 worth of Ford Festiva, smashing both side windows and putting a massive dent in the side and roof. He's lucky he had insurance - as I had insurance too and I simply put a claim in with my insurance company who then chased him down for a $7000 property claim (yep, very expensive bike).

    So from my point, I had piece of mind that I had the cash for a new bike within a week. And from his point he was chased for several months until they were eventually able to get his insurance details from him - he was probably in shock that a bicycle could be worth 7 times the value of his car…and 7 grand is a huge amount of cash for someone just starting out in life to find in their own pocket.

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  Euphemistic on 14/09/2013 - 07:59

  Hope that last comment is tongue in cheek. If you drive a car, you can't afford to NOT have insurance, lest you run into an expensive car (or a house like all the pensioners seem to be doing lately) maybe you will choose third party property damage though.

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  backpaqer on 14/09/2013 - 10:17

  One extra point worth mentioning about the insurance company "buying" the vehicle. If he's NOT AT FAULT, then the insurance company should be recovering the money from the 3rd party - not trying to recover value from the vehicle.

  • 

    Euphemistic on 15/09/2013 - 13:20

    If they write it off, they are still buying the car in its current conditon. It's up to them where they try and get the money back from, sale of wreck, chasing the at fault party or hiking up your premiums (and everyone else's)

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  Bullzye on 26/09/2013 - 09:59

  I know this is a old thread but for any one reading this I would like to detail my experience with an insurance claim. I recently had an accident(my fault and first time). The damage was assessed to be around 7k. I spoke to the assessor and we agreed on a payout(I am happy with the amount) rather than repairing the car.
  I just got a call from my insurer and they have transferred the money in my account minus the excess and the rego. I have been following this discussion for a while and I was a bit scared due to some of the point mentioned here

  1) The rego money goes to the insurer - which I later understood why.

  2) If paying monthly, the insurance company will still deduct the the remaining insurance premiums from the payout.

  In my case that's not what the insurance company did. They have sent me an email with an attached document which I have to take to Vic Roads to get a refund for the remaining months. If the amount refunded is less than what is on the document the insurance company will pay the difference. Also I pay my premium on a monthly basis and no money was deducted for the remaining months.

  For those interested I was with Coles insurance and I am happy with the service apart from the fact that it can take close to 40 mins sometime to talk to the agent handling your claim.

  • 

    backpaqer on 27/09/2013 - 09:21

    Maybe they decided the car was not a write-off - did you get to keep the car too (without paying a salvage figure?).

    • 

      Bullzye on 27/09/2013 - 15:27

      No they took the car. I think it's with pickles now for auction.

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        Euphemistic on 28/09/2013 - 09:54

        Maybe that's why theya re cheaper, they make you go and do some of the work.