AAMI Car Insurance Claim Declined! Due to Existing Hail Damage

NamandSpam on 09/11/2020 - 23:25

Hi guys,

Need some advice on this issue im dealing with. Ideas and thoughts on how to proceed with this would be great.

Context
Mum had an accident with her car (at fault) and is insured with Aami comprehensively. Long story short the car is a write off and aami declined the claim. The assessor states that the pre existing hail damage on the car, that was not disclosed to the insurer, is the sole reason as to why they will not payout. The hail damage is not severe and wouldn't have affected how the car runs.
I've read the policy and it states that not disclosing any damage during the time of insurance could possibly result in a claim being declined. Guys, I know where this is going but is there any way around this? I am planning to dispute this with Aami but wanted to get your thoughts on what to say. Any thoughts would help.

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Comments

  • jimbobaus on 09/11/2020 - 23:30
    +7

    I've read the policy and it states that not disclosing any damage during the time of insurance could possibly result in a claim being declined

    Answered your own question.

    This is a very common reason for claim denial.
    If you have any damage to the vehicle you need to inform your insurer so they can adjust your policy accordingly or advise whether it needs to be fixed.
    The onus is on the insured to keep the insurance company informed of anything that may affect their ability to offer you insurance.

    Does your vehicle have any existing damage is a question when taking out any insurance, while the hail damage came later its still "existing damage" under the definition and needs to be fully disclosed

    Her vehicle is insured for $XXX and with hail damage its value has decreased, this means a write off will not have be as recoverable to the insurer.

    Sorry to say but you are SOOL and AAMI will stand their ground 100%

    • ATTS on 12/11/2020 - 15:15

      just wondering, will third party insurance claim still be denied if you have only third party and dont disclose and cause damage to someone else car

    • cloudy on 05/06/2024 - 22:45
      -1

      Interseting, do people regularly call their insurance up and inform them if they have a slight scratch/scrap on the car they might have just gotten, not enough to want to put in a claim but it is damage now…

      I know my parents have been with their insurance for a long time, but they keep it for proper accidents, they dont car about small scuffs a knock on the mirror thats no wobbly, etc etc

  • tsunamisurfer on 09/11/2020 - 23:31
    +4

    The policy disclosure statement states the condition.

    You've read the policy and condition and agreed you have not kept up your end of the agreement.

    I know where this is going

    You have conceded that you are going to get snarky negative comments.

    I support AAMI's decision 100%.

    I am planning to dispute this with Aami but wanted to get your thoughts on what to say.

    I would start with " I am sorry I am probably wasting AAMI's claims team's time as well as my own, but I still feel entitled to a claim. LEL.

  • modsec802 on 09/11/2020 - 23:32
    +5

    The hail damage is not severe and wouldn't have affected how the car runs

    I don’t think it’s about how it runs but more about what the car is (not) worth. A car with hail damage can be worth nothing - which is probably why they don’t want to pay a write off figure for a non-damaged car.

    What’s the insured value of the car? What is the car year make model?

    • eatwell365 on 10/11/2020 - 01:26
      +4

      Bigger issue here with this claim declined is that the insurance company also does not pay for the other vehicle damaged. Hope she did not hit something expensive.

  • Cave Fire on 09/11/2020 - 23:48
    +4

    A hail damaged car is worth less. There should be an option to declare minor hail damage when the policy was started. Phone consultants can sometimes override whether you get an additional hail excess on the policy. The criteria is something like marks less than 5cm and not down to bare metal. They may put another hail damage excess on the policy to be safe. Did a quote for a slightly hail damaged car with Budget and no additional hail excess, just lower insured value.

    • pharkurnell on 10/11/2020 - 09:12

      Didnt know that one.

  • askme69 on 09/11/2020 - 23:58

    I have a mate, hail damaged car. Pay out was $15k, purchased it back from Insurance for $1k and drove it for years.

    At best all you could hope for would be the hail damaged value of the car. What make/model car is it?

    • NamandSpam on 10/11/2020 - 00:10

      Its a Toyota corolla 2009

    • CMH on 10/11/2020 - 00:17
      +2

      I would say the best OP can hope for is the value of the car minus cost of hail damage repair.

      Which for a '09 Corolla, the hail damage would exceed the value and thus payout is 0.

  • Jetstream on 10/11/2020 - 00:20
    +2

    On the other hand,

    If the car had been stolen, would you have asked AAMI for what is a fair market price for the car?

    Or, would you have said, actually there was some hail damage on the car, so you can offer me 50% off, because when I purchased the vehicle, I also paid less as it is less desirable?

  • godofpizza on 10/11/2020 - 01:22
    +1

    AAMI can't give you market value for a car that has pre-existing damage.

    OP, was the accident you mum fault or the other party?

    • pegaxs on 10/11/2020 - 08:14
      +1

      Mum had an accident with her car (at fault)

  • apsilon on 10/11/2020 - 06:08
    +3

    You're not going to get anything for your mums car unfortunately but are they also declining paying out for the damage to the other party?

    • EightImmortals on 10/11/2020 - 09:05

      I'm curious to know this as well.

    • NamandSpam on 10/11/2020 - 18:11

      Theyre paying out for the damage to the other party. Which is better than nothing I guess.
      The hail damage wasn't even noticeable to me until they have told us that there was damage. Just wondering if there's a better resolve than no payment at all.

  • pharkurnell on 10/11/2020 - 09:07

    I believe you even have to inform your insurance company of any traffic infringements … speeding etc. So they can 'adjust' your premium.
    Thats why they sometimes ask for copy of your driving record.. another out for them

  • djkelly69 on 10/11/2020 - 11:52

    I would remind them of their duty to act in the utmost good faith under the Insurance Contracts Act.

    My understanding is that they can only completely deny a claim if they would not have insured the car at all had they been aware of the risk/damage. If they would have insured it but for a lesser amount, then they are entitled to reduce the amount of the claim down to that amount (but not reject it completely).

    • Ughhh on 10/11/2020 - 18:32
      +1

      I would remind them of their duty to act in the utmost good faith under the Insurance Contracts Act.

      Then they could kindly remind OP had a duty to act in utmost good faith and duty of disclosure under the Insurance Contracts Act.

      Going by ops comment, they're not completely denying the claim as OP claims. AAMI is only partially denying the claim, they're paying out the other party, but not OPs car. Seems fair.

  • bobbified on 11/11/2020 - 17:10

    When it comes to situations such as this, the question will be:

    Would the insurer have agreed to insure the car had you disclosed the existing damage at the commencement of the policy?

    If their answer to that question is no, then your the policy is void and you get nothing.
    If the answer is yes, but at a reduced value, then the max you will get is the reduced value that they would've insured you for had you told them about the damage. And you might need to drag them to court to see any of that money.

    Alternatively, depending on how visible the hail damage actually is, you could argue that you didn't know the damage was there to even declare it.

  • NamandSpam on 12/11/2020 - 18:35

    Thanks guys, its been resolved. Lesson learnt. Well for me at least.

  • TEAMDC1 on 07/10/2021 - 10:43

    Just get the minor hail damage repaired privately. Should cost much

    • NamandSpam on 08/10/2021 - 17:42

      thats true bro, i shouldve done that first. but it was after the fact that we sent it in and realised there were hail damage assessed by the insurance..

  • Iamy on 05/06/2024 - 22:11

    Why do they know you have hail damage? Was your car written off before?

    • JumpingUnicorns on 06/06/2024 - 11:42
      +1

      You've dug this thread up without reading the post

      >
      The assessor states that the pre existing hail damage on the car, that was not disclosed to the insurer, is the sole reason as to why they will not payout. The hail damage is not severe and wouldn't have affected how the car runs.

  • Grunntt on 07/06/2024 - 20:51
    +1

    You've dug this thread up without reading the post

    Also without any attention to the date either.
    I always wonder how people come across these old posts to resurrect them like this.

  • Save 50 Cent on 10/06/2024 - 19:25
    +1

    I suggest new replies to posts which have been inactive for 6 months (or whatever period) have to be approved by a moderator before getting published. And obviously only approved if it adds actual value to the discussion and would benefit future readers.

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