Cash Payout after Car Written off Queries

LMaccadoodle on 09/12/2015 - 10:04

Hi Folks,
My older Corolla 1997 was rear ended the other day with mainly cosmetic damage. Not my fault as stationary at the time. Other driver admitted fault and was fully comp insured. (Checked with my mechanic who vouched that it would still pass rego)

Insured for $2000 so likely to be written off. Was told by panel beater that NRMA would payout cash if I said I didn't want vehicle written off. Has anyone had experience with this process and whether they were successful in negotiating a lesser amount? The panel beater says that he would fix up car for lesser amount as it could be done without the higher standards that insurance company requires.

It is a great little car and in very good condition. Would cost more than $2000 to get another one that standard if one could be found.

I just dont want to be left with no car or if given a cash settlement not able to be insured.

Any advice appreciated.

Automotive

Comments

  • Neilzy on 09/12/2015 - 11:29
    -1

    I suspect that the insurance would just write-off the car and pay you out since the value of your car is only 2k and the cost to repair by the insurer would be greater than this. its less of a headache for them.

    You can then purchase the car off the insurance company and get it repaired (if its considered a repairable write off and not a statutory write off). you shouldn't be out of pocket if you take that option and the settlement figure should be enough to get it repaired and back on the road. Try and negotiate the buy-back price lower and make sure get quotes from other panel beaters so you dont stooge repair costs

  • denuto on 09/12/2015 - 13:27

    I think that your car will not be "written off" but rather it will be "beyond economical repair". A write off is a car that cannot/should not be repaired. Most registration authorities classify severely damaged cars as statutory write offs which means that they cannot be registered again.

    If the insurance company gets a quote for, say, $4,000 for reppairs to your car and assesses the value of the car before the accident at $2,200 and the salvage value at $200 (what a wrecker would pay for the car)it would offer you $2,000 (the difference between the value before and after the accident). You can keep or sell the car. As long as the damage doesn't make the car unroadworthy, you can keep driving it. There's no law against driving an ugly car (I've owned a few, and it seems that some of the cars sold new are pretty ugly).

  • Maccadoodle on 09/12/2015 - 13:40

    Thanks Neil & denuto.

    I shall tentatively try and work through insurance and hope for a cash payout. I just didn't want the cars details on some accessible Australian insurance data base which may preclude me even having third party.

    There needs to be a better system for people who own lower priced vehicles and who are not to blame. Why should we take a financial hit being the innocent party? Can be devastating for folk who need the transport like students etc.

    Insurance companies need to weight the payout and no claim bonuses etc against the driver liable so more good safe roadworthy cars are left on the road.

    I shall get things in motion and report back.

  • Mad Max on 09/12/2015 - 20:51

    So true.
    An older car that has been looked after and does not have many km on the clock may not be worth much for the insurance, but it is worth a lot to the owner. It does exacly the same service of a newer and more expensive car. And it may not be easy to replace it with a similar car (unknown history and status of repair) with the insurance payout. And how long will it take to find the right used car to replace it? How much time will be lost? Who is going to pay for the huge inconvenience?

    • Maccadoodle on 11/12/2015 - 14:11

      I have a letter brimming directed to the NRMA. Probably new legislation needs to be drafted in Consumer Law. Better protection for car owners with low value wagons. Bloomin well pees me off that the guy who hit me I do most of paying and cops not at all interested in charging such violations as negligent driving. Not much disincentive to drive responsibly.

  • Euphemistic on 09/12/2015 - 22:43

    Bloke at work went through this recently. Someone crashed into his $1500 commodore. Took ages for the other party's insurance to sort out what they were going to do, write off, repair etc. in the end he got sick of waiting and got a bit grumpy with the insurance company, he ended up with a good payment for damage, got to keep the car with some damage to the front bumper fixed with 100mile/hr tape, a hammer and a new headlight from the wreckers. Still going strong months later. He didn't want to have to replace a car that was otherwise mechanically sound for the sake of a rough looking bumper.

    If you are happy with the car mechanically, can live with it mechanically push for a payout and keeping the car. Then you can decide how to repair it as cheap as practical.

    • Maccadoodle on 11/12/2015 - 14:19

      Thanks Euphemistic It gives me hope. Happy with a $1000 as that would tidy it up enough to keep my wife happy getting to work. Real full job about $2500. That needs to be sorted as well. Panel shops need to be able to quote for legal and safe repairs but not top jobs. Especially the cosmetic stuff that would not affect safety or registration. Whole industry I think like so many others is based on risk algorithms and small fry not worth catering for.

      • Mad Max on 11/12/2015 - 21:36
        +1

        No mate…the whole industry of insurances and panelbeaters is based on extracting as much money as possible out of honest people that look after their stuff and after their money. It is a complete rip off!

  • [Deactivated] on 14/12/2015 - 08:40

    Are you claiming through the other guy's insurance?

    If so - you can negotiate the payout amount.

    You don't have to agree to terms of HIS insurance company. It is not YOUR insurance company.

    My mate had the same problem - the most important thing is to have proof that the other party was at fault and then deal with their insurance.

    You can say to them - $2000 is not enough because I can't buy another one of these cars for $2000.

    You can say you want more if it is a write off and negotiate.

    • Maccadoodle on 15/12/2015 - 12:44

      Well I am claiming to a degree on the other policy as we are both with NRMA. May have made it better if we had different insurance companies. I have authorised the panel beater to send in quote to insurance which I am sure they will knock back. Over $2000 and car insured for $1900 even though worth more to buy as very clean & well looked after.

      Yes other party was at fault and has admitted it and he is fully insured. I am just hoping for payout and I can keep car. Its all cosmetic damage and mechanic will register it as is.

      Will keep ye all posted on what insurance comes back with.

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