Car Written off on Low Value

• 

  Randxyz123 on 01/08/2017 - 22:36

  Make a not at fault claim. If he has market value it will be between the values on redbook.

• 

  spackbace on 01/08/2017 - 23:04

  -5

  On your insurance renewal it should always tell you the value it's insured for. It's not like some great mystery

  • 

    PissLUR on 01/08/2017 - 23:28

    +7

    Not if it's market value.

  • 

    minimalist on 02/08/2017 - 12:40

    Actually, backspace is correct (upvoted). There is a value on the policy displayed as 'amount covered', however value was not far from the valuation offered by at-fault's insurer ($3100).

    In this situation, his option is rather limited I think.

• 

  vovka on 01/08/2017 - 23:23

  +1

  Find few same model cars on carsales (same year and kms) and if there's nothing for $3000 tell it to the insurer.

  • 

    [Deactivated] on 01/08/2017 - 23:35

    Insurer will tell him that what's available is irrelevant. They may phrase it in a softer way but to the same effect.

    They're offering to pay out exactly as per the contract of OPs mate's policy.

    • 

      Diji1 on 01/08/2017 - 23:55

      What? It's not even his insurance that's paying.

      • 

        [Deactivated] on 02/08/2017 - 00:02

        It's not. That's pretty clear.

        But if you're insured under market value, regardless of which party's insurance/ who is at fault, you will get market value. Likewise, if it is insured at agreed value, you will get agreed value.

        Have helped process the claims in all four possible combinations.

      • 

        Mad Max on 02/08/2017 - 10:43

        -2

        @tshow:
        So what would happen if OP (or generally the not at fault party) is not insured at all? He would still need to be paid out, but there in no agreed value or market value insurance to base it on.

      • 

        [Deactivated] on 02/08/2017 - 11:10

        +1

        @tshow:

        "You will get market value"

        "What's available is irrelevant"

        So which is which?

      • 

        [Deactivated] on 02/08/2017 - 14:34

        @lolbbq:
        What's available is irrelevant - you can have a look online and establish mean and median prices. You can propose the most logical, fair and comprehensive report on similar cars that are available to purchase from the resources available to you. All that is irrelevant because you will get "market value" as dictated by Redbook.

      • 

        [Deactivated] on 02/08/2017 - 14:38

        @maxi:
        If you're the not at fault party and you are uninsured, you will likely get hustled.

        Firstly, the at fault party's insurer will try to establish the events to minimize fault to the party they are insuring. Failing which, they would then try to pay you as little as possible that you would agree to. If you do not agree to a sum they are happy to pay out, they will drag the matter on and may even take the matter to court.

        Insurance companies have an army of lawyers at their disposal and they know if you're uninsured, you're likely in a financially vulnerable position and will likely fold.

      • 

        [Deactivated] on 03/08/2017 - 11:18

        @tshow:

        I thought the redbook prices were usually quite favourable.

        I don't have as much experience as you but I was uninsured-not-at-fault and a logical, fair and comprehensive report to the other party's insurer gave me what I wanted, rounded down to the nearest thousand of course (but what I had expected in the end).

      • 

        [Deactivated] on 03/08/2017 - 12:37

        @lolbbq:
        They are usually not favourable in my experience, but I've only looked for old japanese cars that I helped list.

        Glad to hear it's not all bad when dealing as an uninsured.

      • 

        [Deactivated] on 03/08/2017 - 17:29

        @tshow: Fair enough, I suppose the redbook market value for old japanese cars might decrease quicker than their perceived/actual value because people actually think they're worth more compared to the other much more unreliable shitboxes

• 

  [Deactivated] on 01/08/2017 - 23:31

  +2

  They use Redbook. It is an independent assessment of the current value on the average value of any model of vehicle. As to how that number is generated, I don't know. The important part here is that it is independent - car retailers and insurance companies use this as their primary pricing resource. They may not be using the private sales pricing which is usually inclusive of rego to varying lengths.

  Your mate can call his own insurer to get a better price. The likely outcome is a token amount to get the process moving. As it is insured under market value, there are no other realistic options.

  This is as good as it's going to get.

  • 

    minimalist on 02/08/2017 - 12:44

    Thanks, that's the info that I was looking for. I had a feeling they're using Redbook but Redbook don't give you "market valuation" report unless you pay.
    I was wondering on where the big gap came from on "private sales" vs insurer's market valuation.
    Good point on the private sales price is inclusive of rego & transfer fee in private pricing range.

• 

  Diji1 on 01/08/2017 - 23:59

  +1

  Don't take the offer and sue them.

  • 

    Euphemistic on 02/08/2017 - 08:57

    Don't sue them, just go to your own insurer and make the claim.

    • 

      pjetson on 02/08/2017 - 10:13

      And if his insurer also thinks it's a writeoff, won't they also come up with a similar payout figure?

      • 

        Euphemistic on 02/08/2017 - 10:58

        probably, and then you'll have a hard time getting any more out of them, and any costs (time and effort) involved in suing would probably outweigh the benefits of getting an extra $1k.

• 

  vtecdohc on 02/08/2017 - 03:08

  +2

  Does your mate happen to be this guy, because the story sounds very similar where they rather have the car repaired instead of getting written off.

  • 

    minimalist on 02/08/2017 - 12:48

    Nope, similar but my mate's scenario is simpler (no extra accessories). We're just working out if the value offered by insurer is fair and if there is other avenue to take other than biting the bullet and simply accept the cash out.
    The problem with write off is, to get a replacement car, he will need to spend money again on rego and transfer fee.
    His current rego still has another 7 months of life and current insurance is only 6 months.
    Do we normally get a rego refund (for whatever period is left) when car is written off?

    • 

      vtecdohc on 02/08/2017 - 13:57

      Once the insurance company pays your mate out, the remaining rego belongs to the insurance company and the remaining insurance policy will get refunded so 6 months worth.

      • 

        Euphemistic on 02/08/2017 - 16:05

        If it is the other insurance company though you get to choose what to do with the car, they give you cash to either fix it or buy a new one.

• 

  primal89 on 21/03/2023 - 12:35

  Ahh the joys, any idea on timelines for assesments in 2023.