Insurance: Repair possibly Higher than Agreed Value, Write off Possibly

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  [Deactivated] on 26/07/2017 - 23:41

  1. If the cost of the repairs exceed or comes close to the agreed value, it is an insurance write off.

  2. At the stated value of your car, I don't think they'd inspect the vehicle to ensure all parts insured are intact. They are highly unlikely to part out your car. It is likely going to a yard or wholesaled.

  3. Don't forget to pick up the plates and get a refund on the remainder of your registration.

  • 

    hasher22 on 27/07/2017 - 00:06

    Thanks, keep that in mind! :D

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  Architectonic on 27/07/2017 - 00:01

  Why do you want a repair? Severely damaged cars often have issues - paint quality, fitment of parts is not as good, and often unexpected problems like rattles, future mechanical issues.

  Agreed value is supposed to mean that you can get a similar replacement car for the same money…

  If it is a write off, you will likely be able to remove the aftermarket stereo if you did not explicitly specify it on the insurance policy, but it is unlikely you'll be able to remove the wheels without the insurance company getting upset. (well it depends: did you tell the insurance company about the wheels? Do you have the stock ones to switch over?)

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    hasher22 on 27/07/2017 - 00:13

    +3

    I have a few mods made to the car, not major such as;
    - Wheels
    - Head unit
    - Subwoofer
    - Speakers
    - Amps
    - Some cosmetic items attached to the car

    • Yes, all these items are in my policy. I have stated all the aftermarket parts in my policy. The stupid thing on my behalf is that I "trusted" the quote to be 4.6k when I should have looked online for the average re-sale price and made it 7k :(

    Also, if it ends up being a write off, I will have to fork out extra money for the same model as my car is roughly going for about 6k-7k and for me to transfer all the aftermarket parts to the new car will be a massive headache and most likely I will hire someone to do it (more money). Plus there's stamp duty, also if the rego is coming to an end of the new car, that's more money out of my pocket to pay for. My rego ends May 2018.

    If it's a repair, then at least I don't have to worry about parting out the car. All I really want is the wheels (which I could source out cheap wheels from pick n payless or a wrecker, again more money), head unit, amp and subwoofer. The speakers, cosmetic stuff can stay. The OEM wheels were stolen 1 year out of my garage. I used to live in a unit at that time. So I don't have the OEM wheels.

    All this stress is not needed as I have other family situations going on and I just started semester 2 at Uni and I need a car to get to the station as there are no buses near me. I have little funds in my savings. All because someone wasn't paying attention in traffic……

    • 

      ihbh on 27/07/2017 - 08:19

      +2

      Yeah, it sucks when it's someone else fault. My FIL got rear-ended and got a check for $6.7k for an immaculate car with low mileage compared to the average agreed value car. My wife felt guilty as she was asked by her father to find the best insurance for him, and she was angry at herself for not getting a higher agreed value, but I told her that would have meant a higher insurance premium. It's easy with hindsight to think you should have selected a higher agreed value, but if the insurance was 20% more, 40% more, would you have paid for it, not knowing you might have to call on it?

    • 

      Architectonic on 29/07/2017 - 13:04

      Yes, it certainly sucks when it's not your fault! Good luck with the repair, I hope it all works out well for you.

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  zuuutoootuuu on 27/07/2017 - 00:24

  If the car gets written off, make sure you ask to collect your personal items and don't start listing the items you'd like to swap back because some insurers don't want you to take anything that is bolted into the car as it increases the recovery value. Once you've been told the car is written off, cancel the rego and get a refund on the remaining rego.

  • 

    hasher22 on 27/07/2017 - 00:33

    Thankyou for your advice. I will do that. The car can still be driven and is currently stationed at my home, it's not stationed at the repair centre. So I will be able to swap out the aftermarket parts.

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  mbck on 27/07/2017 - 01:03

  same thing happened to me, so I know how you feel…my old Betty…

  Anyways, I'm sure you can take your mods out. The biggest thing is getting a new car. Maybe get a super cheap one for the short term?

  Did the other person have insurance? If he did, I would have gone with his insurer. That way you won't have to burden the increase in premium.

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  vtecdohc on 27/07/2017 - 02:47

  +1

  you can buy the car back from the insurance company after it has been written off.

  • 

    spal on 27/07/2017 - 04:59

    Only issue would be it goes on a register of written off vehicles. You will then need to get it repaired, and take it to vicroads for road worthy inspection and pay registration again. Also you will need to look for another insurer to insure the car, as your insurer will not insure the car they wrote off. However, you may be able to achieve all this within the funds you receive from the insurer. It all depends on your buyback price and genuine repair costs. However, it maybe less of a hassle.
    Another option, see if you can get the other party to pay for your repairs, if these costs are not substantial they may agree. Private repair quotes are way cheaper than insurance quotes. This would then avoid all hassles and additional costs for you. Although it may already be too late for this option.
    Hope things work out mate.

    • 

      altomic on 27/07/2017 - 10:44

      and there is a ~$500 service/safety inspection from VicRoads (or agent) once it is repaired.

    • 

      vtecdohc on 27/07/2017 - 12:51

      What im trying to say is OP buys the car back from the insurance company for scrap value and take whatever parts OP wants to keep, As i highly doubt the insurance company will let you take the aftermarket wheels and the stereo out.

      Thats if OP has the space and time to store the car and take parts of it. Then the car could be sold to wreckers or for parts.

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  pjetson on 27/07/2017 - 08:44

  but I have aftermarket wheels, a head unit, amp and subwoofer installed. Am I able to uninstall take these items with me before handing it back to the insurer?

  Does the insurance company know about these items? If so, they are included in the insurance company's valuation of the car, and you should not remove them.

  If the insurance company do not know about these items, then you should be able to retrieve the items and replace them with the normal items that would be included with the car.

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  AJW on 27/07/2017 - 09:37

  The OP stated the items are listed as after market accessories - of course they are going to expect them to be on the car. As long as OP is happy to lie and say "they were still on the car when I took up insurance but I took them off before the accident and was happy to keep paying extra premiums for them anyway, but they definitely were not on the car when it had an accident" then they might give up, otherwise the insurance company would expect some extra value on those after market accessories…it's not a case of the insurer owning the car but letting you take anything of value from it first…lol

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    hasher22 on 27/07/2017 - 11:59

    Thanks, I'll double check my policy and see what I can part out.

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  Euphemistic on 27/07/2017 - 10:41

  Perhaps you could withdraw the claim from your insurance company and work with the other party. That way you will have a little more say, and possibly be able to collect a cheque from them and retain your vehicle - to either repair or collect parts from at your leisure.

  • 

    hasher22 on 27/07/2017 - 11:55

    Thanks!

    I emailed the 3 places that I got a quote from and advised of the other persons insurance claim number for the quote to go to them not through my insurance.

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  sedlang on 06/08/2017 - 19:38

  Hi there.

  Insurance assessor (loss adjuster) here.

  Obtain a copy of the assessment report. Dispute quantum, source three comparable sales adverts for same make/model and average the sales price.

  PAV calculation will be done via motor assessor and industry guide eg. Glasses, Red Book.

  Depreciation will apply for higher than average KM, pre-existing damage, etc. Argument goes both ways, less KM, better than average condition will see a higher PAV.

  Insurer will always look to settle based upon lowest PAV.

  Accessories will be included in the PAV (Pre-Accident Value) and will become property of insurer once claim is settled.

  Negotiate a settlement, also if vehicle repairable write-off you could always source your own repair quotes and request cash settlement for value less excess (and have vehicle repaired yourself).

  PM me if you require further assistance - happy to help.

  Cheers.