Written off payout - unused rego + CTP rip-off

LWickadz on 13/01/2017 - 17:44
Last edited 13/01/2017 - 17:51

Hey guys & gal's..
I have a written off car to the agreed value of 5500. The ctp / registration was only two weeks old.

Insurance company is paying the agreed value less excess (700) ctp(600) + rego(250) to a total for roughly $3950.

My understanding of this is that if the car was written off the day before I renewed rego + ctp I would be 850 better off. And the payout would be 4800.

I can claim the unused rego + ctp, but I would imagine the agreed value is 5500 + ctp and rego.

This seems a bit of a rip off…

I've checked the insurers pds and it says rego and ctp are included value to the car.

Moral, write off a car at the end of rego and ctp…

Automotive

Comments

  • wombok2 on 13/01/2017 - 18:08
    +3

    By any chance is your car a 2007 Ford Fiesta 3dr?

    • Wickadz on 13/01/2017 - 21:33

      Nope! Forester

  • justhooked on 13/01/2017 - 18:23

    A lot of people think the same but in the fine print it states less rego and excess also if you pay by the month they will take the rest of the years premiums as well . A friend purchased a car for $7000 and insured for the same once they took
    All the bits out he got $3500 after it was written off .

  • spackbace on 13/01/2017 - 18:30
    +6

    And if you didn't have Comprehensive insurance, you'd be $3950 worse off.

    Glass half empty huh?

  • activ8newbs on 13/01/2017 - 19:33
    +1

    I was under the impression that you can get your unused rego reimbursed from RMS?

    I was told this by Insure My Ride when I had my motorbike accident (I only had a month left of Rego so I didn't bother)

    • John Kimble on 13/01/2017 - 20:09
      +1

      Yes, you have to go in to get a refund. You should also get a portion of the CTP back too? At least I did…

      • Wickadz on 13/01/2017 - 21:36

        Yes, effectively you part ctp twice (once actually paying it, then insurer takes this amount away again from Dubai settlement, then you get reimbursed). So you pay 600 - insurer takes another 600 and you get 600 back. If that makes sense.

    • Wickadz on 13/01/2017 - 21:35

      Yes you get it reimbursed. But the comprehensive insurer reduces this from their final settlement of agreed value.

  • Steptoe on 13/01/2017 - 21:21

    Sounds like NRMA 🙅🏻‍♂️

    • Wickadz on 13/01/2017 - 21:34

      Bingo

  • chriise on 13/01/2017 - 21:45

    I'm a little confused… if the car is valued at 5500.. why do they take the 850 rego/ctp off? Surely the total value is 5500+850? Fair enough you can claim the unused rego from RMS but surely you still get 5500 back from the insurers?

    Was having discussion with a friend recently as we were realising how screwed over you get if you get in a not-at-fault accident and are written off… Didn't realise there was further screwing.

    The initial screwing was me learning that insurers pay out the trade-in value of your car from redbook/parkers. My car would be 6-7k to purchase… but only worth 3-4 tops as a trade in.

    • Wickadz on 13/01/2017 - 21:58

      Unfortunately no… Screw over. Read my other replies. :) ctp rego is the value of the car…

    • spackbace on 14/01/2017 - 00:41

      You know you can insure your car for agreed value… Hence no need to state Redbook values etc. Not to mention, the value of your car is on the policy and renewal documents, so you shouldn't be shocked at the value

      • John Kimble on 14/01/2017 - 01:48

        I think he is saying the value written on his policy would be $5500, yeah, but the taking of the CTP and rego would be buried in the fine print PDS somewhere.

        So this is a kind of public service announcement?

        • spackbace on 14/01/2017 - 01:50

          That's what op is saying yes, comment I replied to though is trying to say that you'd get paid out the trade-in value of your car, which is a load of crap!

        • John Kimble on 14/01/2017 - 02:03

          @Spackbace: ah ok. I thought it was market value, not trade in value? Or that the same thing?

        • zerocritical on 14/01/2017 - 07:58

          @John Kimble: no it's not the same. You can insure to an agreed value of the car, adjust it to higher value but the premium increases accordingly and vice versa.

          If you insure at market value, the premium is fixed but the payout will depend on what the current market value of the car is.

          I personally prefer agreed value over market value as there is less chance of screwing over if the car is written off.

        • chriise on 14/01/2017 - 08:33

          @Spackbace: yeah you're right, that is what I thought. I stated what I considered the value of my car for insurance, so I assume this is "agreed value" then. But I thought they paid out trade in anyway. I'm happy to learn otherwise.

        • chriise on 14/01/2017 - 08:37

          @Spackbace: Will they still deduct rego/ctp from agreed value??

        • John Kimble on 14/01/2017 - 08:42

          @zerocritical: I meant is the below comment saying market value is actually secretly trade in value?

          The initial screwing was me learning that insurers pay out the trade-in value of your car from redbook/parkers. My car would be 6-7k to purchase… but only worth 3-4 tops as a trade in.

        • John Kimble on 14/01/2017 - 08:43

          @chriise: Isn't that what the OP says happened?

        • John Kimble on 14/01/2017 - 08:44

          @zerocritical: yeah I learnt about market value vs agreed value the hard way.

    • John Kimble on 14/01/2017 - 02:08

      It shouldn't be the case, but Insurers will almost always lowball you. It's up to you to fight or dispute the figure. I got an extra 10% paid out just because I said "that seems low, how can I dispute that?". I just had to provide a few examples of similar cars on sale.

  • backpaqer on 14/01/2017 - 07:25
    +1

    You can negotiate with the insurer. I rejected their payout figure and mentioned a few upgrades etc and they reviewed their offer upwards by several hundred dollars.

    • zerocritical on 14/01/2017 - 07:54

      This is if you are insured on market value and not agreed value. You can't reject the payout of agreed value.

  • zerocritical on 14/01/2017 - 07:47

    I think this is a standard practice. When my last car was written off, I was on agreed value too. The payout was agreed value-(CTP+Rego).

    It wasn't difficult to get the CTP and rego refunded though. The overall value I received after adding refunded CTP Rego was over the agreed value.

    The explanation I was given was that the total worth of your car is X (which is agreed value). So after the settlement, you should get X in your hand including refund. This made sense to me.

    PS. I am not insured with NRMA.

  • BreezyPalms on 14/01/2017 - 09:11

    This is normal - when you buy a car it usually has rego/CTP otherwise you would negotiate a discount (or the seller would have taken this into consideration in setting the price).

    Therefore, the value of the car includes the rego/CTP

    As previously suggested your best bet is to challenge the value (unless it is already at the upper end of an agreed value in the policy)

    My mate successfully challenged a valuation by writing a letter to the insurer explaining why it was worth more, in his case a pristine low km example with near perfect paint/panels/interior (obviously before the write off!). He cited examples of recent advertisements/sales to support his case.

  • HeWhoKnows on 14/01/2017 - 13:36

    Easy Fix - just remove plates from car before handing over to the insurance company. That way you can surrender your plates to the motor registry and get your rego and ctp back.

    • Wickadz on 14/01/2017 - 22:20

      How so - i have the plates?

      • HeWhoKnows on 20/01/2017 - 19:21

        Just take them in to the Motor registry with your Registration papers and ask them to cancel the registration and refund the balance…easy!

        • Wickadz on 20/01/2017 - 23:03

          Ah. No you do recieve ctp and rego back. However insurer takes that out of the final settlement value. So effectively you pay ctp and rego twice, but recieve one back. In the end, you lose it.

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