Not at Fault Car Insurance Claim - Am I Getting Ripped Off on Write off Value?

Lstedmaster on 25/03/2021 - 18:21
Last edited 29/03/2021 - 11:39 by 2 other users

I have not done this rodeo before so I just want to make sure I'm going about this the best way, I'm being told this and that and I'm not sure if there are other alternatives.

I was involved with a collision that was not my fault earlier today.

Their insurance RAC is going to handle things. I only had 3rd party as I drive an 09 SX Hyundai Getz 152Kkms, only the person at faults RAC is going to do anything for me, which is fine. I was told to ring their RAC and RAC asked if I wanted repairs done, I said if "yeah if I can"

I was then given a location nearest my work to take the car in for an inspection. The car is still drivable and is virtually fine except for a reasonable streak down the left side of the vehicle where about 6 inches of their cars bumper surface area scraped down the side. The doors open and close but the paint has been scraped, I have been told the doors will need to be replaced and repainted as the shell is damaged enough, no car structure damage or pillar issues except for the left rear fender will need to be panel beaten and repainted

All the above work is going to cost more than the vehicle value apparently, this is what the crash repairers said, and I will most likely only get a pay out of the vehicle value which has been set by RAC at $3100

I always looked after the car with proper service history, usually they sell for more than that. Even Redbooks value it higher than that.

This is the main thing though, If I take the payout I lose the car entirely, although I know others who've had write offs and got paid out but also kept the car in a much worse state, which I don't understand !?!?.

If I turn everything down and just keep the car they're saying it could be yellow stickered. I know I can get white doors for around $200 each from a wrecker

I know a couple $1000 might be chump change for some but I would like to know if this is really how it goes

Ideally I'd like to get a payout and sell the car or fix it myself as I know the rest of it is fine, and coming up with a rental while I wait for the money to come through would be something to avoid.

Automotive Car Insurance Insurance

Comments

  • chcse on 25/03/2021 - 18:29
    +5

    You can try to negotiate with RAC for a higher value if you believe it is worth more and get a pay-out to fix yourself. I am in Qld where someone rear-ended me and it ended up being a repairable write-off. I didn't want to lose the car (as cannot find anything comparable for the same price) so I took the pay-out to fix it myself (cost me $600 out of pocket), but still kept the car and my insurance intact with (apparently) no issues from my insurance company. I have comprehensive though.

  • brendanm on 25/03/2021 - 18:33
    +5

    Give them examples of similar cars for sale, and the prices they are asking, to show them that the amount they are offering will not "make you whole".

  • Paul Atreides on 25/03/2021 - 18:45
    +1

    Negotiate with the insurance company, that's really your only choice, back up what you say with facts around Market value.

    After they've written off the car and paid you out, I do know of some insurances company that will offer to sell you back the car (think this is the information you're after) for a cost. You could turn down this offer, hunt down the auctioneering company that the insurer uses (assuming it's not scraped), and hopefully buy it back for cheaper at auction, although I suspect that your car might be looking at the scrap heap if you don't buy it at salvage (given that it's not worth much).

  • Euphemistic on 25/03/2021 - 18:59
    +3

    A bloke at work negotiated with an insurer in a similar situation. They offered him almost nothing. In the end he got them to pay an agreed amount for repairs and sorted the damage himself. New headlight and some tek screws in the bumper - profit.

    Get them to agree to a repair value that allows you to keep the car, repair it cheap and keep some extra cash. The car is not a stat write off, just economic, so you don’t have to accept full payout and them keep the car, it’s your choice to an extent.

    If you want a $ value to go back to the insurer with get a quote for a budget repair. Ie remove doors and replace with second hand, painted to match.

  • Drakesy on 25/03/2021 - 19:01
    +5

    Ask for a payout for the repairs (for the redbook value of the car, i'd imagine they'd lowball you just for the sake of it), then take the money and keep the car, everyone wins.

    • justwii on 25/03/2021 - 21:20

      The repair is higher than the car value.

      • Drakesy on 25/03/2021 - 21:29

        This is my point
        He gets paid out for the repair/cars value and he gets to keep the car.

        The op gets to choose up to the cars value

    • stedmaster on 26/03/2021 - 13:17

      This is what I'm going to negotiate today, hopefully it goes well, I will update the post as I go.

      It will be interesting to see how this plays out.

  • Jugganautx on 25/03/2021 - 19:08
    +3

    if you traded that car in right now any dealership would give you 1k for it.

    • John Kimble on 25/03/2021 - 20:25
      +2

      Can you explain how comprehensive insurance would have helped in this scenario?

        • Tech5 on 25/03/2021 - 21:21
          +4

          So… his comprehensive insurer would then lowball him with an offer of $3100? Whether it is his insurer or theirs, makes no difference.

          • yippy on 25/03/2021 - 21:26

            @Tech5: You can choose agreed value instead of market value with comprehensive. So it does make a difference.

            • Tech5 on 25/03/2021 - 21:32
              +2

              @yippy: Isn't that value on a slider where the insurer sets the max, and you can pick anything under that?

              • yippy on 25/03/2021 - 21:39

                @Tech5: It starts at the market value and you can slide it up to a higher number but you will pay more on the premium.

            • John Kimble on 25/03/2021 - 22:04
              +1

              @yippy: Bobsam didn't say agreed value, just comprehensive.

              • [Deactivated] on 25/03/2021 - 22:13
                -4

                @John Kimble: Back peddling

                • John Kimble on 25/03/2021 - 22:26
                  +3

                  @[Deactivated]: I asked you to elaborate and you chose not to. Unhelpful.

                  • [Deactivated] on 26/03/2021 - 06:55
                    -3

                    @John Kimble: Ask your school teacher today.

        • Drakesy on 25/03/2021 - 21:31

          I fail to see other than having a claim now against your name how comprehensive would help

          • yippy on 25/03/2021 - 21:48

            @Drakesy: If they had comprehensive with agreed value of $5000 and made a not at fault claim their insurance would pay them the $5000 and recover it from the at fault party or their insurer.

            • Drakesy on 25/03/2021 - 22:12
              +1

              @yippy: And have a claim against their name, so would end up paying in the long run
              Basically getting penalised for being hit by a car, hence why the OP is probably not wanting to involve their insurer.

              • resubaehtgnolhcs on 25/03/2021 - 23:10

                @Drakesy: If you actually read the entirity of your insurance PDS, all accidents are reportable regardless of who was at fault and regardless of who is making the claim - with a threat that failure to do so can void your policy.

                • Drakesy on 26/03/2021 - 00:15
                  +1

                  @resubaehtgnolhcs: Agreed that you need to read your PDS, but not all accidents need to be reported
                  Here

                  Even if you don't want to make a claim, you may still need to tell your insurer about the accident.

                  • resubaehtgnolhcs on 26/03/2021 - 09:23

                    @Drakesy: In my lifetime I have had comprehensive insurance with 5 major insurance companies, and in their respective PDS they all stated that I had to report all accidents and damage to my vehicle. I am yet to come across an insurer who has stated that I do not need to report all accidents/damage to my vehicle. YMMV

          • [Deactivated] on 26/03/2021 - 19:25

            @Drakesy: You failed then

  • bunkr on 25/03/2021 - 23:05
    +6

    You may want to read this reddit thread. The other party's insurance lowballed an offer. You are not obliged to accept what they offer.
    https://www.reddit.com/r/AusFinance/comments/mcjzqh/update_c…

  • afoveht on 26/03/2021 - 00:40
    +2

    It's the first time I've seen it written. TIL it's spelled "gypped."

    • kerfuffle on 26/03/2021 - 05:53

      I normally spell it "jipped"

      • afoveht on 26/03/2021 - 06:29
        +1

        Wow. More TIL. Thanks for that.

      • [Deactivated] on 26/03/2021 - 07:01
        -2

        As if lol

        • CL7 on 26/03/2021 - 09:15
          +3

          Moron is a stretch, but gypped is about as racist as it comes.

          It seems like it is less perceived as racist in Australia because we have almost no exposure to Romani people.

          It is pretty uncommon in Australia these days to have someone say they got “jewed” by their insurance company, “gypped” is equally distasteful.

          • Euphemistic on 26/03/2021 - 09:25
            +2

            @CL7: I’d say many who have ever used the word gypped had no idea where it came from. Then, we’ve all been taught ‘black’ or ‘asian’ is racist, but tend to forget that denigrating other white cultures is also racist.

            • CL7 on 26/03/2021 - 12:05
              +1

              @Euphemistic: Totally true.

              I was replying to Bobsam saying "As If" - I don't think that is an appropriate human reaction to discovering a new racial slur that you may or may not have been using. I think afoveht is a more relatable reaction - kind of "Huh - thanks. I won't use that again!"

              There is definitely a race to see who can be the most PC, but I would hope that learning that Gypped is pretty offensive to a whole race of people wouldn't be seen in that light.

      • Big Dog on 26/03/2021 - 10:44
        +2

        Yep. Logged in to make this exact comment. Thanks for educating those who didn't understand the racist connotations with using that term.

        • John Kimble on 26/03/2021 - 11:47

          The power of Google…I didn't even know before today!

        • CL7 on 26/03/2021 - 12:06

          Lol - I saw it on my daily digest and clicked through, hoping to see that someone had educated already.

      • brendanm on 27/03/2021 - 22:29

        Article uses "problematic" in the first paragraph, into the bin it goes.

        • Big Dog on 28/03/2021 - 11:11

          Do you not like the use of the word "problematic" or the fact that the words referred to are considered only just "problematic"?

          I was surprised to see "Hip Hip Hooray!" has at it's origins, an anti-Semitic rallying cry to attack Jews in Germany. I'm sure even Jewish families probably even say that at birthday parties without knowing it's roots and are unlikely offended. It's good to know though and if I can avoid offending people, I figure, "why not?" when it comes to not saying it.

          EDIT I should note that this etymology is disputed by some and the hep-hep riots in 1819 in Germany may not be connected to hip-hip hooray… so yeah, "problematic" at best!

          • brendanm on 28/03/2021 - 11:55

            @Big Dog: I don't like the use of the term "problematic". Everyone is offended by everything these days, as witnessed by this article, attempting to scrape through history, in an effort to find something offended worthy in everyday things. As you suggest, 99% of Jews probably wouldn't even know about the (seemingly made up) reference to hep hep.

            Edit - also amusing that it's not ok to "culturally appropriate" "spirit animal", but using "familiar", and "culturally appropriating European folklore is perfectly fine

  • Stroudie on 26/03/2021 - 07:33
    +2

    Take your car to a repairer, or 2 different repairers, of YOUR choice, get independent quotes for repairs or statement that it is a "write off" If a write off, get your own valuation (2nd hand market is very high at moment for some types. The Red Book guide may not give accurate current value)
    Get you quotes & write a letter of demand to the driver of the other vehicle & send all to them, giving them 7-10 days to respond or you will take legal accident against them.
    You are not obliged to accept the offer made by other insurance coy. they are trying to get out of this as cheaply as possible & will screw you.If you put the acid on the other driver, he should get his coy. to act. Remember, the other driver is responsible, so any legal action will be against him, not against his insurer (at this stage)

  • Dejaar on 26/03/2021 - 08:46

    Careful if it is a write off that it is sellable and no future insurance issues for buyer or yourself if u keep it. I nearly bought a repairable write off and guy doingvauto inspection told me it may not be insurable. Not sure if that is same for your situation.

  • robberbutton on 26/03/2021 - 10:29
    +4

    Since the other party is at fault, what their insurance company wants to pay you is of no consequence. Get appropriate (and reasonable) quotes for repair or equivalent vehicles for replacement, and issue a letter of demand against the at fault party for that value.

    Their insurance company is representing their client, not you. You're not bound by their terms, nor their desire to save cash in a payout.

  • afah0447 on 26/03/2021 - 13:18
    +2

    I love the use of the word 'gypped' in these PC and cancel culture times.

  • md333 on 26/03/2021 - 14:12

    Do make sure to check with your own insurer if you are covered first. Some 3rd party only policies do cover you for not at fault claims where the responsible party is identified. May help to have your insurer doing the negotiation etc.

    • Euphemistic on 28/03/2021 - 06:24

      Typically that clause relates to uninsured at fault drivers

  • OzHunterNSW on 27/03/2021 - 10:31

    Ask for a buy back price… take the money and run

  • stedmaster on 14/05/2021 - 14:08
    +1

    I had to wrestle with them on the phone for a couple of days, I had a friend who managed to turn it around for me as an experienced sales consultant, he knew more about the legalities.

    The rac center did their own re-evaluation of the car but they wouldn't disclose that new value to me, they then said they'd begin the work but if the value of the work exceeded the new evaluation it would be the same scenario, although I still would have pushed harder as I had gotten quotes and was more informed.

    I was planning to get the doors myself worst case and then get a resprayer, I would have then invoiced with demand to the person who crashed into me, saying their insurer was not representing them in a fair and reasonable manner, but it didn't come to that. I also had two friends who'd do a letter and even begin a summons for me worse case

    It took a about month before I could take the car in into the rac repair center as they were booked up, I got given a rental for the week it was in the shop

    In the the end the car got fixed by them and looks great, no expense on me, I didn't let them give me the short end of the stick

    • Paul Atreides on 14/05/2021 - 20:55

      thanks for the update, glad to hear you got it sorted in the end

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