Car Insurance Woes - They Want to Pay Me out

Islund on 12/09/2018 - 18:18
Last edited 12/09/2018 - 18:26 by 1 other user

Hello fellows!

I have a car insurance policy with the supermarket that likes to advertise the are driving prices down.

Almost 2 months back a truck brushed against my car at traffic lights. Vehicle was very much driveable and I drove 20klm home.

Insurer said I was at fault and scheduled my car in for repairs - repaired told me it would take 13 working days. 1st the car would go to the mechanics for suspension work and then smash repairs.

4 weeks after leaving the car I had not heard back from the repairer so I called them to be told the mechanic was waiting for a tie rod end. Also told me someone would be in touch in the next week. No-one ever called.

2 week later I receive a call from the insurer’s assessor who tells me that the cost of repairs is more than the value of the car. He wants me to go go collect the plates from the mechanic like yesterday so the insurance can pay me out.

Now, I took the insurers to the financial services Ombudsman regarding the “at fault” decision of the insurer. A colleague seems to think this decision by the insurers to pay out rather than repair is revenge.

Any thoughts on this? What would you do in my place?

• 

  spackbace on 12/09/2018 - 18:21

  +8

  Thoughts? What are we, insurance assessors?

  How old was your car and what's it insured for?

  And no, insurance companies don't just write cars off "for revenge". You really think some admin worker gives 2 shits about you?

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  spackbace on 12/09/2018 - 18:24

  +18

  Your poor car/s

  😮😮

  • 

    HighAndDry on 12/09/2018 - 19:50

    +8

    Christ OP, get off the road!

  • 

    Oz8argain on 13/09/2018 - 10:07

    honestly if this guy keep needing his car repaired, maybe there's something wrong with him. maybe he deserved this.

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  wei13 on 12/09/2018 - 18:38

  +3

  Seems like their communication has been crap. However, paying you out is a perfectly legit option for the insurer. You can't force them to fix it if they want to pay you out.

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  DarkOz on 12/09/2018 - 18:54

  +4

  I would have prefered a pay out over a repair any day. If the pay out is less than you expected then you didnt insured it enough.

  • 

    Islund on 12/09/2018 - 19:44

    In hindsight perhaps not.

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  Randxyz123 on 12/09/2018 - 19:04

  Almost 2 months back a truck brushed against my car at traffic lights.

  Insurer said I was at fault and scheduled my car in for repairs

  Why were you deemed at fault?

  Now, I took the insurers to the financial services Ombudsman regarding the “at fault” decision of the insurer.

  A colleague seems to think this decision by the insurers to pay out rather than repair is revenge.

  Why would it be revenge?

  • 

    Islund on 12/09/2018 - 19:43

    Merge lane - insurer said I did not give way. I was in front of the truck: lights went red I stopped truck kept crawling up on me even after it came to a complet stop 2 carlengths behind. Hit me on the back bumper and then all along the driver’s side.

    • 

      [Deactivated] on 12/09/2018 - 19:45

      +1

      We're you trying to lane change close to the lights/intersection?

    • 

      HighAndDry on 12/09/2018 - 19:51

      Was there a broken line between the lane you were in and the lane you were merging into?

      (Also trucks can't stop on a dime - little matter of physics. So that part of the story says very little by itself).

    • 

      CMH on 14/09/2018 - 14:50

      I'm thinking OP doesn't have any proof to back his story, and insurer's believe that the trucker's version of events were more credible based on the damage.

      I doubt insurer's will just shift the blame, especially against their own client for no reason. The usual reason is the lack of evidence to support their client's claims.

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  Brucet on 12/09/2018 - 20:00

  CHeap , low price insurance cover !!!!?????? give you hassle ..

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  naplutetium on 14/09/2018 - 00:20

  I had an at fault motorcycle accident a few months back and they said the same "cost of repairs more than the value". They paid out the estimated market value and I accepted. I would have received the same if I would have sold it before the accident. Or less on trade in.

  The insurance then sold the bike for parts in an auction. It was simple economics for them (not revenge), this was simply cheaper for them.

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  brendanm on 14/09/2018 - 17:17

  Getting payed out is better than getting it repaired. Go buy another car that hasn't been written off.

  There is no reason for them to not pay you out the value of the car if the repairs are more expensive, that would simply be stupid.

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  Architectonic on 16/09/2018 - 21:45

  +1

  Most crash repairs are of far poorer quality than how the car came from the factory. Having a statutory write off/payout is a boon compared to the nightmare of dealing with shoddy crash repairer work (common even with crash repairers with "good" reputations)