What Are My Options for a Hail Damaged Car?

ShortyX on 29/11/2017 - 10:13
Last edited 29/11/2017 - 10:13

We have a 2007 Camry with 180,000 kms and it was insured for an agreed value of $7,700. It was recently damaged quite significantly in a hail storm so I lodged a claim with our insurer. The excess is $600.

When we took it to the assessor, he mentioned that due to some panels needing repainting, the cost to repair will be about $7,000 - $8,000 so he deemed it as a write-off in his submission to the insurer.

I am now waiting for a call from the insurer but what are my options?

Am I allowed to withdraw the claim and keep the car? Will that affect my insurance premiums in the future?

Or can I go ahead with the claim and buy the car back from the insurer?

I don't particularly want to go through the hassle of getting another car as it was our intention to run this car into the ground.

Thanks

Automotive

Comments

  • Euphemistic on 29/11/2017 - 10:26
    +3

    Talk to your insurer. They might not insure it for comprehensive if it has hail damage though. maybe switch to third party property, fire, theft if they wont fully insure it.

    Alternatively pay your excess, collect the write-off value and buy a new car.

  • resisting the urge on 29/11/2017 - 10:34

    Def a write-off situation

    If you want to keep the car, you may be able to reduce the damage yourself-

    Look up hail removal on youtu.be
    Buy a cheap Paintless Dent Removal Kit, and a heat gun online

    or just have a professional PDR person take a look and quote on the most annoying bits.

    After that, reduce the amount you insure it for to take into account any reduction in value from the remaining damage.

  • JimB on 29/11/2017 - 10:39
    +10

    You can get paid out and request to buy back the car for $2,000 or so.

    Going forward, you'll have to disclose to future insurance company or same one that it's a repairable write off. I'd just put it on 3rd party,

    • Wampus on 29/11/2017 - 10:43
      +3

      I think this is the way to go, my friend had her car written off as it was an old Festiva but was still basically OK, she was able to buy it back after the payout

      • JimB on 29/11/2017 - 11:38
        +2

        Some people don't care what their car looks like as long as it gets them from A to B reliably, then it's a win/win for them.

        They get a keep the car and some cash, and regardless of the condition of the body, it will be scrap in 5 years time anyway.

  • Make it so on 29/11/2017 - 13:12
    +1

    I don't understand the issue…. You have insured the car for more than it's worth IMO, so you're winning. When my car got damaged by storm waters during the 2010 storm in Perth (which caused $1B damage), my car "only" had 2.5k engine damage, and I was kicking myself that they did not write it off (overinsured it by several thousand dollars). Worst part, a year after they repaired it, it started having issues again.

    Seriously, you wouldn't get $7,100 if you had to sell it privately, let alone trade it in, and you are now going to get it without the hassle of having to sell it. Best part, as already indicated, you can likely buy it back for a pittance (many people in Perth did this in 2010, after 30,000 cars got written off).

    Count your blessings.

    P.S. keep in mind that a hail damaged car may not be 100% safe, as its structural integrity may have been compromised. It may not behave as designed in the event of a crash.

    • boomramada on 29/11/2017 - 13:49

      OP's issue is premiums, still don't get it. If its a write off and still worried about the premiums, why bother insuring as comprehensive.

      • Make it so on 29/11/2017 - 14:57

        Right.
        No, your premiums (or "no claim") is not affected by storm damage because you are not at fault.

    • Euphemistic on 29/11/2017 - 13:49

      P.S. keep in mind that a hail damaged car may not be 100% safe, as its structural integrity may have been compromised. It may not behave as designed in the event of a crash.

      Maybe if it has a broken windscreen, but I'd hate to think that cars would become dangerous with a bit of a pelting with some hail.

      • Make it so on 29/11/2017 - 14:58

        The tensile strength of the metal is decreased. It won't crumple the way it was meant to. There's a lot of science and engineering that goes into that (all of it way above my head).

  • JimmyF on 29/11/2017 - 13:41
    +2

    Am I allowed to withdraw the claim and keep the car? Will that affect my insurance premiums in the future?

    Yes you could I guess.

    As its got existing hail damage, you won't be able to claim hail damage for it in the future.

    Or can I go ahead with the claim and buy the car back from the insurer?

    Yes and yes.

    Your policy will be cancelled on payout. So you'll need to take a new one out, and declare hail damage.

    I don't particularly want to go through the hassle of getting another car as it was our intention to run this car into the ground.

    Fair enough. Take the payout and buy it back, drive it into the ground.

  • ShortyX on 29/11/2017 - 13:59

    Thanks all for the advice and suggestions.

  • JTTheMan on 29/11/2017 - 15:30

    I think it's best to take the write-off payout as that is a win

    As for buying back a cosmetically damaged car at a low price? That's up to you but I couldn't do it.
    I admire that you would put practicality over vanity though, kudos to you.

    • wordplay on 29/11/2017 - 21:34
      +1

      even in pristine condition its still a 2007 Camry, not much to look at there.

      • JTTheMan on 29/11/2017 - 22:08

        True, I didn't think of that. No loss in the cosmetic department then, but gain in the financial department! :)

  • jelko on 29/11/2017 - 15:42
    +1

    My car was damaged by hail in Perth a fair few years ago. The car was comprehensively insured. When I made a claim, the cost of the repair was more than the car was insured for so it was a write off. I was paid out by my insurance company. I then had the option to buy the car back from the insurance company for scrap value. I did this.

    Now, the car can not be comprehensively insured as it has been written off. So all I have in third party insurance (just in case I hit a Ferrari, I will be covered for the damage to the other car).

    • ShortyX on 29/11/2017 - 15:54

      Thanks. How much did you buy it back for? Was it negotiable?

      • jelko on 29/11/2017 - 17:30

        I can't remember how much I bought it back for. The insurance company provided the scrap amount and I just paid it. Didn't try to negotiate.

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