Insurance Company Offered Lower Amount for a Repair Where I Am Not at Fault

krish-KK on 10/09/2022 - 15:03
Last edited 11/09/2022 - 00:41

My car (17 years old) met with an accident where it was the fault of other party and the damage was on the front bumper, side Pannel and left headlight. Since I had the dash cam, it was proved the accident was other party’s fault. I made the claim with my insurance (Allianz) since they said it will not impact my insurance premiums as well as claim status. They checked my accident via a repair shop near my home and given a cash settlement of $1500 and assessor stated that side Pannel has been poorly painted and they called it as poor workmanship, which might over painting it, When talk to the repair shop, they said they cannot repair for that amount, that is amount given by the Allianz assessor based on his assessment.

I immediately got a quote from another repair shop and they have quoted $3300, where they consider replacing the side Pannel rather repairing it since it is cost effective. I have submitted above quote to insurance company and stated that the given cash settlement is not enough and later made a complain to claim division for future escalation. After that my car was assessed by the same assessor at repair shop where I have got the above quote. After a week time, they came back with the same cash settlement amount.

As the next step, I had made a complaint to AFCA hoping to get the right amount and they have given time to settle this issue within ourselves before they get involved. During this time, insurance company reached me and given the offer of $2000 as cash settlement (giving additional $500) which I have rejected, since the lowest quote I have received to repair is $3300. Further, internal damage to car is only will be known once the front bumper is removed.
At this stage I am waiting for AFCA action further on this. I just want know whether I am going on the right track and is there any other things I should consider ?

Thanks for your time on reading my concern and appreciate for your reply in advance.

Automotive Car Insurance Insurance

Comments

  • randomusername2017 on 10/09/2022 - 15:12
    +2

    All the answers will be in your policy/PDS. Preferred repairer..dispute resolution etc. You haven't specified a timeline.. AFCA case sounds premature .

    Are you suggesting the low value is due to insurer claiming panel was poorly finished prior to the accident?

    Get more quotes also…

    • krish-KK on 11/09/2022 - 00:23

      The low value is the amount that would cost Allianz to repair the vehicle with their preferred/contract repair shop. Since the side Pannel is poorly painted, the repair shop refuses to repair it, stating they cannot give the life time warranty. I have already said that I am happy to not consider the life time warranty for the side pannel.

      Sure, I will get more quotes.

  • Aust on 10/09/2022 - 15:46

    You have referred to AFCA so have to sit and wait it out now, nothing else you can do. If AFCA find in Allianz favour then if the other party is insured then you could try claiming off them but likely end up with the same result. You don't say how old your car is but if the paint is that bad then perhaps contributing towards it isnt such a bad thing.

    • krish-KK on 11/09/2022 - 00:25

      Thanks for the reply. My car is 15 yrs old.

  • Ocker on 10/09/2022 - 16:25
    +1

    You should have bypassed your own insurer by getting your own quote and send it to the other parties insce. company.
    PS - regardless of what Allianz told you it will affect your future premiums.

    • Euphemistic on 10/09/2022 - 20:00

      Either that or take it to a repair shop that is approved by your insurer and have them fix the damage. You shouldn’t need to know what it costs, just that it’s repaired.

    • krish-KK on 11/09/2022 - 00:27

      Yes, I should have done. Unfortunately, I wasn’t able to confirm the insurance company his car, though I got the copy of driver license and the registration number.

  • jsb on 10/09/2022 - 18:25
    +2

    Why is there cash settlement involved. You should just ask them to get it all fixed. That way if you encounter any issues later because of repair or some other thing that should have been fixed, it will be covered as well and they have to give guarantee for the repairs for x number of years. If you accept any cash settlement, they won't have any liability after that

    • krish-KK on 11/09/2022 - 00:33

      Yes, that’s right. All noted.

  • brendanm on 10/09/2022 - 18:30
    +5

    None of this story makes sense.

    • bobbified on 11/09/2022 - 12:34
      +4

      Sounds like OP already had a shitty-painted panel that got damaged and the insurer is (rightly) only wanting to pay out what it would've cost to fix the portion that was damaged in this incident only, rather than replacing the whole thing (which would mean OP gets a net benefit from).

      The payout is supposed to bring someone back to their original position rather than bring someone to a position that was better than before.

      • brendanm on 11/09/2022 - 16:57

        Thanks for the translation.

      • krish-KK on 13/09/2022 - 23:33

        Apologies for the late reply and sorry if I confused with my way of telling the context of the issue.

        The paint on the side Pannel is fine and it is not pealing off. But is not shiny as rest of the car and has slightly met look. The cost of the new pannel cost about $150 only, which I was agreed to bear during discussion. However, insurance company want to repair it and paint. Then, they said over painting on top of existing paint may void the life time warranty. Therefore, they are giving the cash settlement.

        The second quote what I have obtained include the cost of replacing the pannel, rather than repair it, since replacing it cost effective. Hope, it is clear now.

  • hasher22 on 10/09/2022 - 21:27

    I don't understand why there was a cash settlement?

    Aren't you meant to go to their suggested or your preferred repairer, they quote, insurance picks a repairer and the repairer bills the insurance company?

    This is new to me. Maybe someone can shed a light on cash settlements, a way for insurance companies to under pay?

    • krish-KK on 11/09/2022 - 00:36

      Yes, I also never aware of it. Allianz said since previously painted side pannel is considered as a poor workmanship, they have chose the option of cash settlement.

      • hasher22 on 11/09/2022 - 01:04
        +1

        That still doesn't make sense as an excuse for cash settlement.

        Even if there's existing damage or poor workmanship (cause the assessor said so?) and you got into a car accident, they will need to repair it at their cost.

        Stuff that, I'm glad you escalated it.

        • Tomcruise on 11/09/2022 - 07:19
          +1

          They have to repair the panel to a certain q
          quality set by them, which sounds like it exceeds the ehat it was prior to the crash.

          Sounds ok, but home insurance for instance, they dont say that your bathroom was OLD and WORN so we cannot fix it as you will be getting a new one and that's a benefit yo you.

          • hasher22 on 11/09/2022 - 15:27
            +1

            @Tomcruise: Yes, I do understand build quality may not meet expectations.

            But for example with the bathroom, if the bathroom was damaged and accepted for repair or whatever, yes that's a benefit to the customer. Your example seems just normal wear and tear over the years.

            But what happens if the damage was done to the bathroom, some inspector comes around and says "oh, the waterproof sealant wasn't done properly by the previous contractor, here's a small cash settlement to fix your own bathroom"? I mean, how is a occupant suppose to know everything in the home is up to scratch, code for an insurance inspector to give their opinion if it's not of quality repair/build, then knock back or give a smaller insurance claim pay out?

  • krish-KK on 13/09/2022 - 23:36

    One more request: Has anyone gone through or dealt with AFCA previously? Any advice for this particular insurance? Your input would be really helpful. Thanks.

    • fanbubbles on 12/04/2023 - 08:52

      Just wondering if you have an update on your situation? I am going through a similar process where my insurer looks like they're trying to lowball me. I can't be 100% sure though because they have my car

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