Insurance Claim after The Car Was Flooded

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Everyday Insurance

• 

  p1 ama on 02/12/2014 - 14:05

  +1

  I understand that after another hail storm in Brisbane last week insurance companies are flooded with claims but is there is a way to complain about this? We are without the car for 2 weeks now and we cannot buy another one in case insurance doesn't write that car off. And everyone in Brisbane knows public transport is freaking expensive and pain the the bum!

  Some car insurance companies have an option for you to be provided with a rental car during the period where your car is being assessed and repaired. If you didn't tick this option, then your only option is to get a rental car. There is nothing to complain about in this situation.

  • 

    Hedgehog girl on 02/12/2014 - 15:05

    Just checked our insurance policies, we don't have that option at all:( Next time we'll definitely think better before buying new insurance.

• 

  suchislife12 on 02/12/2014 - 14:07

  +1

  I'm sorry but to be 100% honest with you if you really needed the car so bad then you should have taken out the hire car option on your policy. No you can't ask for money back on your policy as by making a claim the insurance company has done what they were paid to do and hence it does not matter if it happens at the start or end of a policy.

  As for the extended wait time I can understand your frustration but admittedly there will be extensive wait times after a storm that has damaged not only cars but houses, a small insurance company like hollard will have only limited facilities. The best way to get your car assessed is to be persistent and call them everyday until you have an answer. I had to wait 6 weeks for my car to be repaired earlier in year and there weren't even a flood of claims at the time (pardon the pun)

  Also a quick note it is never advisable to start a car that is under water.

  • 

    Hedgehog girl on 02/12/2014 - 15:10

    Thanks for the advise! We've just checked our policies and rental car is not even in the options/extras. Here is the lesson to us.
    We are calling the insurance almost everyday but they are saying the assessment company is slow and can't do anything.
    Sad that we are not going to get a refund, but glad to hear that even if we would pay monthly they would still change us till the next year!
    Still feel shit after all that happens. And with this storm season at the door don't even know if I want to drive again:(

    Thanks a lot for the info!

  • 

    Kkuba on 03/12/2014 - 10:47

    EDIT: exact question answered below.

• 

  akyeeeahdude on 02/12/2014 - 14:32

  +3

  Sorry to hear about your car.

  To answer your question, if the car is written off, you WILL NOT receive a refund for the insurance premium paid for the year (if paid annually). Since the contract is fulfilled, you forfit this along with any pro rata registration left on your vehicle. It is discussed in the PDS.

  If you paid monthly, they will charge you the remainder of the 12 month period and normally deduct it from your payout figure (I don't know why ozbargain automatically bolded this statement)

  Another question - if the car is written off, can we claim some sort of refund for the insurance? Cause we paid for the whole year in August and if we buy another car now we'll still have to buy new insurance. So what will happen with the current insurance. I thought in case of an accident/crash insurance can keep the money but cause it was nature's disaster can they refund the money?

  • 

    Hedgehog girl on 02/12/2014 - 15:12

    Now I really wish they can repair it! Will I have to pay again for the insurance? Or the same contract would be valid?

    Thanks for sympathy! Hopefully this is the first car flooded and the last one at well!

    • 

      akyeeeahdude on 02/12/2014 - 15:48

      Yeah hopefully it won't happen again for a long time, I work at Milton and it took me 4 hours to get home as the trains and buses were delayed/full.

      If it is repaired, you will not have to pay anything to continue the policy apart from your excess.

      How deep was the water inside your car? Was it above the pedals?

      • 

        Hedgehog girl on 02/12/2014 - 16:07

        Fingers crossed then it is going to be fixed :)

        To tel the truth I was in a complete mess and shock so I don't remember really how much water was inside when I opened the door (cause that let more water inside). But we got all the lights on (engine, airbag, oil) for the next 5 days and after that only air bag sign was still on when they picked up the car. The water got under the bonnet but cause I started the car it means engine was not drastically effected I suppose?

      • 

        jaypehm on 02/12/2014 - 16:30

        @Hedgehog girl:

        Where there is water damage to a car, it will usually be a write off. This is even more so when water has reached a level where it can enter the interior of the car.

        Why? Because the upholstery has to be changed. Wiring and electronics have to be checked and changed. Other key components will be at risk of rusting and might also have to be checked and changed. Other components which must be completely free of water (e.g. brake lines) have to be bled and/or changed. The labour costs involved will make repair uneconomical.

        Long story short, very likely that your car will be a write off. Hope you insured it for agreed and not market value.

      • 

        pjetson on 02/12/2014 - 16:42

        Hope you insured it for agreed and not market value

        Agreed value is almost as much a laugh as market value. The insurance company will set the range of the "agreed" value, and your only choice is to agree with it. And they adjust the "agreed" value downwards every renewal whether you "agree" or not.

      • 

        Cheeper on 02/12/2014 - 18:05

        @pjetson:

        99.999% of cars depreciate so why not?
        With the renewal I get the option of a price range I want to set the agreed value at each year. It is not just on dictated valuation. My last renewal gave the upper limit of agreed value as still the price I paid for it new, it was then 2 y/o.

        The downside of having a high agreed value is if there is serious damage then the insurer may decide to repair it rather than write it off.

      • 

        Hedgehog girl on 03/12/2014 - 10:03

        @jaypehm:
        Yeas, we put agreed value (the same what we paid to the private seller). Wish we put more that we paid :)

        In my office there were 3 cars flooded that time and one was a brand new one and it's already written off (it got more water inside) and the other one - toyota corolla. The girl paid $1200 for the washing and cleaning and drying + brake polish and some replacement (not through insurance). So it should be logical to repair our car than write it off for the insurance company. Am I right?

      • 

        bigticket on 04/12/2014 - 13:48

        @Hedgehog girl:
        Yes everything that is water damaged can be replaced and it will look like new, but what can not be fixed is the vehicles electrics. Replacing all the wiring is not economical.
        That is why most water damaged cars are written off.

        If water has reached the electrical and computer management systems, it may be working fine for now but then you will be plagued with electrical faults down the track when corrosion sets in.

        Do yourself a favour and get another car.

      • 

        Hedgehog girl on 05/12/2014 - 08:08

        @bigticket:
        It is easy to say to buy another car, but it is up for insurance company, we cannot tell them write it off or repair, they will make the desicion depending on the assessment report, so I cannot do anything here:( It's more than 2 weeks now since they towed the car away and we are still waiting for their desicion.

      • 

        bigticket on 05/12/2014 - 19:46

        @Hedgehog girl:
        Sorry, my comments above were from a general perspective and long term nature.
        I did not mean to go and buy a car now.
        You mentioned yourself that you prefer a repair so that you can save the cost of a new policy.
        I advise against that (if you have a choice) for the reasons I have mentioned.

  • 

    Baysew on 03/12/2014 - 14:38

    +2

    I don't know why ozbargain automatically bolded this statement

    It thought you were jv

• 

  akyeeeahdude on 02/12/2014 - 16:54

  There are insurers out there that seem to like drying out cars and replacing components if it is fresh water (which this was) damage so it is possible depending on the car and it's value. Salt water is always written off.

  Agreed value is good for certainty, of course it can't stay the same every year. Otherwise you would have a 10 year old car insured for what it cost new which wouldn't work for a number of reasons especially that of giving a client an incentive to write off their car.

  APIA used to (or might still do) new for old for 10 years….BUT only if the car is stolen and not recovered…
  Great selling point but they wouldn't pay out too often with that condition.

  • 

    pjetson on 02/12/2014 - 16:57

    Agreed value is good for certainty

    My point is that it is not an agreed value, it is a value that the insurance company set and change (on renewal) at their will, not with your agreement. There is no negotiation, so how is it an agreement?

    • 

      akyeeeahdude on 02/12/2014 - 17:30

      I understand what you are saying - it is agreed and set for the 12 month contract. Some insurers still provide a value on market value policies but you may not get that value (most likely not) as the market value is variable during the 12 month contract.

      I think the industry had to adopt its current "agreed value" definition because 99% of people think their car is worth a lot more than it really is.

      There are some insurers that will often an agreed (fixed) sum for a period of time. I had it with Just Car back in the day on a unique, highly modified vehicle but they could reduce it at their discretion at a later date.

  • 

    Hedgehog girl on 03/12/2014 - 09:57

    We put agreed value (the same value we paid for the car from private seller). Cause it was our first comprehensive insurance we didn't really know the difference and we wish we put higher value at that time.

• 

  pinnacle on 03/12/2014 - 08:04

  OP - Had an accident recently which was not my fault. I do not have rental car cover in my policy. But this company provided me with a replacement car. I understand the cost will be recouped from the other party. Not sure how it will work in your case. You may give them a call. URL here —> http://www.compassclaims.com.au/itwasntmyfault/

  • 

    akyeeeahdude on 03/12/2014 - 09:19

    Pinnacle, good suggestion but hail/flood damage is invalid. There HAS to be a party to recover the money from, that's how the business operates.

    Another is Acorn Car Rentals which use the same business model.

    • 

      FutureTech on 03/12/2014 - 09:23

      +1

      The other party is god?

  • 

    Hedgehog girl on 03/12/2014 - 09:44

    Thanks for the info! Didn't know that before. But as Alister said it is not valid with flood damage. Still good to know, thanks!

• 

  srhardy on 03/12/2014 - 09:42

  Not all water damage is the same; fresh v's salt, depth, time ect… I know you want it written off as fast as possible but if the water only got in when you opened the door, you moved the car and then drained it - i dont like your chances at all.

  It has to be at a min set depth for a set min time to be written off, otherwise they can decide to repair, refurbish ect and their is nothing you can do and it can take many weeks or even months! The only thing is the longer it takes the more it will cost them and then you have mould, fungas and that will then complicate the job and add to the expense because the truth is repairers can only do so many cars at a time - so your chances are 50/50 at best.

  Next time, leave your car, moving a flooded car is dangerous and as you can see, everything you do to mitigate their expense is rewarded at yours; insurance means it was their problrm from the moment you saw it was flooded - just walk away!

  pro's and con's of car rentals… You can just get one your self, or borrow a car from friends or family, most have 1 to spare and its often FREE

  • 

    Hedgehog girl on 03/12/2014 - 09:55

    To tell the truth I don't want it to be written off:)

    Firstly cause we just bought it in august and even if it is not a new car (toyota camry 2003) it is in A1 condition! We have a mechanic friend who said we were really lucky to buy such a good car and the previous owner was looking after the car (really good brake pads, wheels and so on?.
    Another reason - insurance money are going to be a waste if they will right it off. I know for some people $600 is just junk but it still good money and if we are buying another car it means new insurance again.

    The car was in the water for 10 mins - that was how fast the water was rising and then it was off the water and after that we were drying it with power vacs at the car wash center for 2 hours.

    Thanks for the advise though! Hopefully this is the first and the last time I saw my car flooded!

    • 

      srhardy on 04/12/2014 - 08:24

      Natural responce(s). The rule is SAVE THE MEMORIES, photos, kids and the dog (house or car) and let the rest burn, flood ect…

      NEW FOR OLD, AGREEDED VALUE, BUYBACK (where you take the cash and then give a lowball offer on the car and get it fixed cheapo style)

      These are the perks of paying insurance! Dont pay insurance then heck, save the car and blow baby blow!

      • 

        Hedgehog girl on 05/12/2014 - 10:17

        What perks do you mean? :)
        Would love to save a couple of hundreds next time!

• 

  GaryQ on 03/12/2014 - 20:17

  I drove into knee deep water during a torrential downpour in Melbourne a couple of years ago. Managed to float the car to the side of the road (I was already soaked through, the car wasn't running and wouldnt start anymore - so I opened the door and pushed it to the side. I felt like the Hulk)

  The next day, the tow-driver said 'grab anything you want off this car, once the carpets are wet its a write-off' and it was

• 

  maybeamacy on 04/12/2014 - 02:10

  You can't get a refund on the insurance and they keep the money left on your remaining registration too if it's a write off.

  • 

    srhardy on 04/12/2014 - 08:27

    You can pay insurance by the month but when you claim you have to pay the balance for the year thats owing, its usally deducted from the claimed refund amount before you get it along with any excess owing. As for the claim that wet carpet is a write off, thats not true often and its never your decision, they are paying they make the call.

    Once the car seats get wet, its well and truley into the electronics then too, well its chances of being written off are much higher if not certain. Floor, not so much

    AND NOW IF YOU DRIVE THROUGH DEEP FLOOD WATER they may deny your claim as its AN OFFENCE now under law and they dont have to pay if your charged, they suspect tis deliberate or they can show you was told, warned or admitted to being told or suspected beforehand. BE WARNED

    Also driving on the beach, tides are your concern and not the insurance company's even if its a a legal road

    • 

      altomic on 06/12/2014 - 22:42

      AND NOW IF YOU DRIVE THROUGH DEEP FLOOD WATER they may deny your claim as its AN OFFENCE now under law

      tis true.

• 

  kronicmacstigator on 06/12/2014 - 22:23

  If it's a no-fault claim, generally you won't be provided with a rental car unless you've paid extra in your policy.

  Most insurance companies will zing you for the whole policy cost (no refund) even if it's just one day after renewal.

  Unfortunately there isn't much you can do regarding how long it takes the insurance company to respond, they are SWAMPED.

  I'd be inclined to buy another car anyway (because if it's for sale NOW it's un-flooded/un-dented) and then just get rid of the one that was flooded whether through selling (it yourself after) or letting them write it off. I'd never touch a flood car myself.