Should I Buy My Written off Hail Damaged Car Back from My Insurer?

ozyack on 17/12/2014 - 23:33

Hi there fellow Ozbargainers,

I would like to ask for advice from people who have dealt with buying or selling hail damaged cars recently. I have a Renault Kangoo 2004 insured for $9300 in Queensland, which I took in for inspection today and AAMI decided it will be written off. It only has superficial damage all around, nothing dramatic. They gave me two options, one is to leave the car there and put $8700 in my bank account after $600 excess, or I could keep the car and they would deduct a further $1750 which they thought would be the value of the car. It has no other damages or major issues, but they said they would only cover me for third party insurance after the write off and I would need to go to Queensland Transport to get a RWC (which would cost $60). I know I would need new tyres to get it passed but not sure about the rest. That's all they said over there and they gave me 2 days to think about it but then I came home I have read the other thread ( https://www.ozbargain.com.au/node/174327 ) to find out a write off inspection which would cost me around $435. AAMI did not mention this to me over there and I am not sure in what situations this inspection would apply. I will call QLD Transport tomorrow but I also wanted to get your ideas as I have never been into a situation like this before. What are the pros and cons would be about buying this vehicle back? What other costs should I expect? What is the likelihood of selling this car in future and do you think if it would be possible at all to get it covered with comprehensive insurance again by any other provider? I appreciate all your input, thanks a lot!

Automotive

Comments

  • pao2x on 18/12/2014 - 00:02
    +3

    So you will have a workable small van for around $2500? Not too bad

    • [Deactivated] on 18/12/2014 - 00:05
      +1

      And one that you accurately know the history of. No "one little old lady owner" tall tales… unless OP happens to be a little old lady.

  • airzone on 18/12/2014 - 00:10
    +1

    Review this:

    http://www.tmr.qld.gov.au/Registration/Registering-vehicles/…

    My bro-in-law repaired a repairable-write-off in NSW and had a lot of trouble trying to get it re-registered. Different laws in different states though.

    You will probably not be able to sell it for much more than scrap value in the future, so I suppose drive it until it stops working.

    • airzone on 18/12/2014 - 00:19
      +3

      Oh and fyi about the write-off inspection fee:

      If you intend to keep your written-off vehicle

      Even though your vehicle has been written-off by your insurance company, you may be able to arrange with them to keep your vehicle as part of the settlement.

      Normally, a written-off vehicle has to undergo a written-off vehicle inspection (WOVI) before it can be re-registered or driven on a road. If your vehicle has been written-off because of hail damage, the department has a process in place to exempt the vehicle from the WOVI process.

      To be eligible for an exemption, you must meet the following criteria:

      • Your vehicle must only have been damaged by hail. If there is damage from a falling tree or a crash, you are not eligible for an exemption.
      • You must have been the registered operator of the vehicle immediately before it was damaged by hail and are the registered operator when the application is made.
      • The registration of your vehicle is current.
    • ozyack on 18/12/2014 - 00:24

      I appreciate your reply, thanks to the link you pasted I found out that I may not need the $430 inspection. "If your vehicle has been written-off because of hail damage, the department has a process in place to exempt the vehicle from the WOVI process."
      I guess if it will only cost me $1750, a RWC plus new tyres I don't really mind keeping it till it dies. My only worry would be the insurance.

      • Settero on 18/12/2014 - 01:02

        you would be very very lucky to get insurance ( beside 3rd party ) for a hail damaged car, your cars resell value will be insanely low , no one wants a hail damaged car because you cant insure them, and when i say you cant i mean they arnt worth insuring for if you do manage to somehow get insurance its going to cost more than a 18 year old p plater with a skyline.

      • ESEMCE on 18/12/2014 - 08:17
        +2

        You'd be mad to Comprehensive insure a $2000 car anyway.. In my opinion you're bordeline mad to comp insure a $5000 car!

  • ozyack on 18/12/2014 - 00:18

    I am just thinking about the resale of the car in long term and what happens if I would need full comprehensive insurance in future? The car has already been involved in a big accident 2 months ago thanks to my mate, the repairs cost $5500 including full front bonnet, air con, radiator, battery replacement etc but was not written off then, only paid $600 excess. I think this makes it harder to sell it in future.

    • cloudy on 18/12/2014 - 09:33
      +4

      Resale? U basically got the majority value of ur car back already, u can't get the full value back twice. So basically u have sold your car, but u kept it. It's the best thing that could happen in my opinion.

      • morpheu on 20/12/2014 - 15:09
        +1

        spot on, just get third party insurance and you're laughing all the way to the bank!

  • Davo1111 on 18/12/2014 - 00:18

    fairly sure therw was a recent post about this on WP, people mentioned issues getting comp.

    • ozyack on 18/12/2014 - 00:26

      I guess I should be happy with a third party insurance then.

  • KangarooOz on 18/12/2014 - 01:22
    +2

    If you can continue to use the car for 2 more years, it only cost you less than $1000 per year (+rego/insurance/maintenance). You need to pay rego+insurance even you have another car anyway. Any year beyond 2 years or resale value is a bonus to you. The question is the gap between the maintenance cost of your old car and another car in your mind.

    • ozyack on 18/12/2014 - 01:44

      We have only got the timing belt + water pump changed 3 months ago and thanks to the recent accident it has a new radiator, air con, etc. so maintenance wise the car is in good condition.

      • Lichen6420 on 18/12/2014 - 04:11
        +4

        Then keep it.

        Obviously future insurance on this vehicle will only cover other peoples vehicles and property.

        The plus side is cheaper insurance as it will no longer be comprehensive cover. Offer them $1250 for the car. They should be negotiable as there is now a hug glut of hail damaged vehicles, the wreckers can only take on so many and they would be paying peanuts for them at the moment.

  • Geewhizz on 19/12/2014 - 09:28

    I'd be keeping it. As previously mentioned, you know the car and know it has been properly maintained. You're going to save a bucketload on insurance, and when it does eventually die you'll already have 5 to 6k to replace it (from the payout.)

    I suspect you are going to find that you'll have to fork out for rego again, because the insurance co. will cash it in. Hopefully for your sake, I'm wrong there.

  • [Deactivated] on 20/12/2014 - 10:38

    Definitely keep it. You had done so much work on the car.

    The car is basically a throwaway. You don't have to worry about any damages or hail. You don't have to put in additional repairs thinking about the "resale value".

    Hopefully you don't have to re-rego it as geewhizz say.

    Even if you drive it for a year AND sell it for scrap. You are still better off than buying and selling a used car (unless you get a very very good deal of course).

  • saxlady on 22/01/2015 - 18:16

    Hi - similar boat, but my car was valued at 12k and it's 6k to buy back. Nissan Elgrand, Diesel 3.2, only done 85000 ks.
    I said surely it should be cheaper but they said no - management decision. The car looks fine, you can hardly even see the hail damage, it's on top, it runs great and we really like it and if they were letting us buy it back for less we'd definitely do it. But I'm not sure - it might be better value to take the full amount and look for another one - BUT it took us a few months to find this, and I have until tomorrow to let them know if we want to buy it back, otherwise I have one week to keep it and find a new car.

    Opinions please!!!

    • dan76n on 22/01/2015 - 23:01

      6k to buy a right off. No thanks.

    • Geewhizz on 23/01/2015 - 07:33

      My initial thought was, it's 6k in your hand and you get to keep a car you know, and won't be stuck with big insurance premiums BUT with that in mind, if it's written off tomorrow you're 6k out of pocket.

      I guess what it comes down to, is whether you can get another car that suits your needs for $12k

      • Wallyt99 on 28/01/2015 - 07:06

        I would walk away for anything over 4000. No way will they get more than that.

        'Management' might have a rethink about trying to scam you.

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